SMITHFIELD, VA. — Smithfield Foods Inc. held its second earnings call on April 29 since reentering the US public equity market. Covering financial results for the first quarter of fiscal 2025, ended March 30, the company demonstrated a positive outlook for the year ahead. With a sharp rebound in Hog Production and strong execution of its strategies during the first quarter, Smithfield begins the year on a firm foundation.

The first three months of the fiscal year 2025 generated an operating profit of $321 million and an adjusted operating profit of $326 million. Both increased more than 85% compared to the first quarter of 2024, which Smithfield credits mainly to improved Hog Production.

Smithfield posted net sales of $3.8 billion with an operating profit margin of 8.5%, up 4.7% from last year, while its adjusted operating margin rose 5.1% year-over-year to a total of 8.6%.

Smithfield posted 57¢ in diluted earnings per share from its core operations, compared to 41¢ in 2024. Adjusted diluted earnings per share from continuing operations attributable to Smithfield were 58¢ per share.

“Our strong first quarter results mark a solid start to 2025,” said Shane Smith, president and chief executive officer of Smithfield. “We have reaffirmed our outlook for the full year, and we remain focused on executing our strategies to deliver higher operating profit in 2025. Our strong financial position provides us with the financial flexibility to invest in growth and return value to our shareholders.”

For fiscal year 2025, Smithfield looks to increase total sales in the low-to-mid-single-digit percent range compared to the previous year. Additionally, the company looks for a total adjusted operating profit between $1,100 million to $1,300 million.

In last month’s earnings report covering the fourth quarter fiscal 2024, Smith declared the Packaged Meats unit to be the “cornerstone” of the company’s business, noting that it will likely be the key driver for future growth. The segment represents 54% of Smithfield’s consolidated sales.

For the period ended March 30, Packaged Meats posted an operating profit of $266 million, down 7% year-over-year, and an operating profit margin of 13.1%. It generated $2.02 billion in sales, which was a modest 1.2% increase from the previous year.

Within the Packaged Meats category, Smithfield sees opportunity for growth through investments in deli meats and dry sausage.

“We remain focused on increasing the mix of higher margin product categories, such as packaged lunch meat and dry sausage,” Smith said. “This is evidenced by the shift in our mix away from large holiday hams to more everyday items.”

Smithfield noted significant potential to expand distribution of its Carando and Margherita dry sausage brands. Over the past five years, the company has sought to increase capacity of dry sausage, including through the acquisition of a dry sausage facility in Nashville last summer.

“During the first quarter, we executed well on our mix shift strategy, as evidenced by our double digit volume growth in both lunch meat and dry sausage,” Smith added.

Smithfield hinted at a strong pipeline of new products to come in 2025 that include line extensions of trusted brands, new flavors and more convenient packaging and sizing options.

Generating just slightly more sales than Packaged Meats with a total of $2.03 billion, the Fresh Pork segment sales increased 4.9% year-over-year. Its operating profit dropped 25.7% from last year to $82 million.

“We see further opportunity to grow fresh pork operating profits in 2025 by maximizing the net realizable value of each hog and driving best in class operating efficiency,” Smith said. “We continue to closely monitor the tariffs and geopolitical environment, which is very fluid.”

Hog Production generated $932 million in sales — a 32% jump compared to 2024. Operating profit reached $1 million, which notably rose over 100% from the previous year.

“This strong rebound from the first quarter of 2024 reflects both improved industry market conditions as well as our focus on operating our best in class cost structure on our retained farms through genetic transformation, herd health improvements, and procurement and nutrition savings,” explained Smith.

The company noted that capital expenditures, such as profit improvement projects, maintenance and repair, during 2025 may range between $400 million to $500 million.

“We do have a seasoned team that is prepared to navigate a really dynamic macroeconomic environment,” Smith concluded in the earnings call. “And we believe, again, that we are well positioned to deliver long-term growth and increase value for our shareholders.”