Strong demand for packaged meat products, Smithfield Foods (SFD.US) expects both sales and profits to increase in fiscal year 2025.

Thanks to the strong demand for packaged meat from grocery stores and the benefits of cost-cutting measures, global pork production giant Smithfield Foods (SFD.US) predicts that sales and adjusted operating profits will increase by 2025. Financial reports show that Smithfield Foods had revenue of $3.95 billion in the fourth quarter of 2024, a 1.0% year-on-year decrease, exceeding expectations by $510 million. Smithfield expects full-year net sales to grow in the low to mid single-digit percentage range, compared to a 3.4% decline in the 2024 fiscal year. As consumers seek to make more nutritious meals at home, the company will also benefit from focusing on packaged meat products rather than pork production businesses. The sales of the packaged meat division accounted for nearly 59% of the company's total sales, with a 2.2% year-on-year growth in sales in the fourth quarter of last year. The department had an operating profit of $313 million in the fourth quarter; the operating profit margin was 12.7%. Earnings per share in the fourth quarter were 54 cents, compared to a loss of 25 cents in the same period last year. Operating profit was $335 million; adjusted operating profit was $315 million, higher than the $230 million in the same period last year; operating profit margin was 8.5%, and adjusted operating profit margin was 8.0%. As of December 29, 2024, the company had $3.245 billion in available current assets, including $943 million in cash and cash equivalents, as well as $2.303 billion in available funds under committed credit lines. The company expects adjusted operating profit for the 2025 fiscal year to be between $1.1 billion and $1.3 billion, with the midpoint higher than the 12-month report of $1.12 billion as of December 29, 2024.