Smithfield Foods (SFD) 53rd Annual Nasdaq Investor Conference summary

Business overview and financial performance

• Achieved $15.3 billion in sales and $1.6 billion in adjusted EBITDA for the trailing 12 months, with Packaged Meats accounting for $8.7 billion and a 12.7% profit margin.

• Maintains a strong balance sheet with $3.1 billion in liquidity and net debt to adjusted EBITDA of 0.8x, supporting growth and shareholder returns.

• Delivered record adjusted operating profit each quarter of 2025, raising full-year guidance despite inflationary pressures.

• Packaged Meats segment grew 6% in the first nine months of 2025, driven by branded portfolio strength and operational efficiency.

• Ongoing cost savings and reduction in internal hog production to under 11.5 million head are expected to stabilize cash flow and earnings.

Strategic outlook and vertical integration

• Vertical integration provides a competitive advantage, with 80% of Packaged Meats raw material sourced internally, reducing costs and ensuring supply.

• Plans to continue evolving the product mix toward higher-margin, value-added categories and offset inflation through operational savings.

• Fresh Pork segment supplies both internal and external markets, with $5 billion in external sales and a focus on cost structure improvements.

• Targeting a reduction in internal hog production to about a third of total needs, leveraging robust external supply in the Midwest and strategic internal supply on the East Coast.

• Ongoing evaluation of optimal internal production levels to maintain flexibility and supply assurance.

Market opportunities and innovation

• Competes in 25 Packaged Meats categories, representing a $46 billion market, holding top-two positions in six $1 billion+ categories.

• Significant growth opportunity in packaged lunch meat, where current market share is 9% and position is fifth.

• Innovation includes Prime Fresh sliced deli and expansion in dry sausage, with double-digit growth and new product introductions.

• Foodservice innovation focuses on pre-cooked, ready-to-eat products, achieving 3% volume growth and over 50 limited-time offers with partners.

• Brand strategy covers all price points and includes 40% private label, helping to maintain share without deep discounting.