Slides
Page 1
Smithfield Foods Third Quarter Fiscal 2025 October 28, 2025
Page 2
2 Legal Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words, such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “contemplates,” “believes,” or “estimates” or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Specific forward-looking statements in this presentation include our ability to successfully continue to execute our growth strategies; our ability to invest in our growth strategies and increase value for our shareholders; our financial outlook for 2025; and the anticipated payment of annual dividends of $1.00 per share in 2025. We have based the forward-looking statements contained in this presentation primarily on our current expectations, estimates, forecasts and projections about future events and trends that we believe may affect our business, results of operations, financial condition and prospects. Although we believe that we have a reasonable basis for each forward-looking statement contained in this presentation, the results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. We undertake no duty to update any statement made in this presentation in light of new information or future events. The forward-looking statements contained in this presentation are subject to substantial risks and uncertainties that could affect our current expectations and our actual results, including, among others: (i) the cyclical nature of our operations and fluctuations in commodity prices; (ii) our dependence on third-party suppliers; (iii) our ability to execute on our strategy to optimize the size of our hog production operations; (iv) our ability to navigate geopolitical risks including increased tariffs on our exports, (v) our ability to mitigate higher input costs through productivity improvements in our operations, procurement strategies and the use of derivative instruments; (vi) our ability to compete successfully in the food industry; (vii) our ability to anticipate and meet consumer trends and interests through product innovation; (viii) compliance with laws and regulations, including environmental, cybersecurity and tax laws and regulations in the United States and Mexico; (ix) our ability to defend litigation brought against us and the sufficiency of our accruals for related contingent losses; (x) our ability to prevent cyberattacks, security breaches or other disruptions of our information technology systems; (xi) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (xii) our dividend policy and our ability to pay dividends; and (xiii) our status as a “controlled company” and any resulting potential conflicts of interest. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Smithfield’s Investor Relations Department at ir@smithfield.com or by clicking on SEC Filings on the Smithfield Investor Relations website at investors.smithfieldfoods.com. Non-GAAP Measures This presentation contains certain financial information that is not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), including (1) adjusted net income from continuing operations attributable to Smithfield, (2) adjusted net income from continuing operations per common share attributable to Smithfield, (3) EBITDA from continuing operations, (4) adjusted EBITDA from continuing operations, (5) adjusted EBITDA margin from continuing operations, (6) adjusted operating profit, (7) adjusted operating profit margin, (8) net debt and (9) ratio of net debt to adjusted EBITDA from continuing operations. We refer to these measures as “non-GAAP” financial measures.
Page 3
3 Today’s Presenters MARK HALL Chief Financial Officer 11 years of experience at Smithfield SHANE SMITH President and Chief Executive Officer 22 years of experience at Smithfield OUR CEO & CFO STEVE FRANCE President, Packaged Meats 23 years of experience at Smithfield DONOVAN OWENS President, Fresh Pork 31 years of experience at Smithfield OUR SEGMENT HEADS
Page 4
4 Pa Third Quarter 2025 Key Highlights Achieved record third quarter adjusted operating profit of $310 million, up 8.5% YoY, with 8.3% adjusted operating profit margin Maintained strong balance sheet and financial position to support future growth Returned value to shareholders through quarterly dividends of $0.25 paid on April 22, May 29, and August 28, 2025; anticipated annual dividend of $1.00 per share (1) 1 2 3 4 5 Executed operating efficiencies and delivered manufacturing, distribution and SG&A cost savings (1) Subject to Board discretion. Delivered Packaged Meats segment's second highest third quarter adjusted operating profit in a challenging market environment
Page 5
5 Strategic Priorities Packaged Meats Segment – Increase profits through enhanced product mix, volume growth and innovation Fresh Pork Segment – Maximize net realizable value across domestic and export markets as well as adjacent channels Optimize operations – Deliver operating efficiencies across manufacturing, supply chain, distribution, procurement and SG&A M&A – Evaluate synergistic opportunities across North America 1 2 3 4 5 Hog Production Segment – Achieve best-in-class cost structure on retained farms through genetic transformation, herd health improvements and procurement and nutrition savings
Page 6
6 Smithfield Shifts from Commodity Ham Products to Value-Added Retail Products INCREASING PURCHASING OCCASIONS AND UNIT SALES BY ADDRESSING CONSUMER TRENDS INCREASING PENETRATION OF HIGHER-MARGIN DRY SAUSAGE PRODUCTS THROUGH EXPANDING DISTRIBUTION POINTS & MANUFACTURING CAPACITY 39% Mix Shift: We Continue to Drive Profitable Unit Growth of Value-Added Premium Products Source: Internal company data. Increase Units (MM) in Higher Profit Categories Full Year 2019 v. September 2025 TTM (1%) 27% Pounds Units Full Year 2019 v. September 2025 TTM Change in Units (MM)
Page 7
7 PACKAGED MEATS SUB-CATEGORIES ($BN) (1) KEY SMITHFIELD BRANDS MARKET SHARE (2) MARKET POSITION (2) 16% #2 9% #5 22% #1 16% #2 16% #3 6% #6 11% #2 51% #1 5% #4 14% #2 (1) Sub-category market size based Circana, MULO+ latest 52-week period ended September 28, 2025; includes private label (2) Market share and market position rankings based on volume data per Circana, MULO+ latest 52-week period ended September 28, 2025; branded product only, excludes private label (3) Includes Deli Pre-Sliced Lunchmeats, Deli Specialty and Dry Sausage (Pepperoni and Salami only) Volume Growth: We Participate in Ten $1Bn+ Packaged Meats Sub-Categories (3) Deli Meat Packaged Lunch Meat Uncooked Bacon Cooked Dinner Sausage Hot Dogs Packaged Dry Sausage(3) Uncooked Breakfast Sausage Smoked Ham Portable Meals Uncooked Dinner Sausage
Page 8
8 A Portfolio Across Price Points Resonating with Consumers’ Preferences Packaged Lunch Meat – Average Retail Price Comparison of Our Brands vs. Select Competitors (1) ARP / Pound $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00+ Select Competitive Brands % of Industry Volume (2) A B C D E F G H H WE DELIVER VALUE TO CONSUMERS ACROSS A WIDE RANGE OF PRICE POINTS (1) Per Circana, MULO+ latest 52-week period ended September 28, 2025; branded product only, excludes private label (2) Total may not sum due to rounding
Page 9
9 Eckrich College Football Playoffs Sponsorship & New Product Innovation Help Drive Sales Volume (1) Per Circana, MULO+ latest 26-week period ended September 28, 2025; branded product only, excludes private label
Page 10
10
Page 11
11 Product Innovation: Addressing Consumer Trends Armour Everything Bagel Dog Armour Pepperoni Snacks CONTINUE LAUNCHING PRODUCTS THAT TARGET SPECIFIC NEEDS AND EXPAND PORK CONSUMPTION 1/2 Rack Pre-Cooked Ribs Farmland Taco Style Ground Pork Net Weight Quarter Hams Nathan’s Hot & Spicy Andouille Smoked Sausage Carando Fresh Meatballs
Page 12
12 Leveraging Our Fresh Pork Sales Channels to Utilize the Whole Hog Packaged Meats Domestic ExportAdjacent Business Lines FURTHER ENHANCE FRESH PORK BY EXPANDING USE & INCREASING VALUE OF RAW MATERIALS
Page 13
13 Optimize Deployment of Labor Continuing to Optimize Operations Reform & Rationalize • Optimize hog production levels and improve cost structure ◦ Right-size hog production levels ◦ Transform genetics & improve herd health ◦ Pursue procurement and nutrition savings HOG PRODUCTION Best-In-Class Lean Manufacturing PACKAGED MEATS & FRESH PORK • Continue to improve profitability and ability to offset inflation costs ◦ Improve yields and maximize raw material usage ◦ Employ automation ◦ Reduce complexity to drive efficiency Improve Service at Optimal Cost LOGISTICS • Continuously improve supply chain operations ◦ Maximize assets (reduce transport miles, warehouse utilization) ◦ Improve supply and demand planning ◦ Optimize inventory levels AUTOMATION • Employ automation to delegate labor to higher-value tasks ◦ Improves yields and efficiency ◦ Reduces complexity and lowers our cost basis ◦ Offsets inflationary pressures ◦ Repurposed ~1,200 positions across Fresh Pork and Packaged Meats over last two years
Page 14
14 Third Quarter 2025Results (1) Adjusted operating profit, adjusted operating profit margin, adjusted net income and adjusted earnings per share are non-GAAP measures. Please see the appendix for a reconciliation of adjusted operating profit, adjusted operating profit margin, adjusted net income and adjusted earnings per share to the most comparable GAAP measures. in $MM except EPS in $ / share Three Months Ended September 28, 2025 Three Months Ended September 29, 2024 % Change Sales $3,747 $3,334 12.4% Adj. Operating Profit(1) $310 $286 8.5% Adj. Operating Profit Margin(1) 8.3% 8.6% (30bps) Adj. Net Income(1) $230 $203 13.7% Adj. EPS(1) $0.58 $0.53 9.4% Consolidated Results Compared to Prior Year
Page 15
15 Strong Packaged Meats Results Despite Significant Increases in Raw Material Costs Third Quarter 2025 vs. Third Quarter 2024 ($MM’s) • Sales +9.1% • Price +9.2% • Volume ~flat • Adj. Operating Profit (5.7)% (1) Adjusted operating profit and adjusted operating profit margin are non-GAAP measures. Please see the appendix for a reconciliation of adjusted operating profit and adjusted operating profit margin to the most comparable GAAP measure. 10.8% 12.5% (1)
Page 16
16 Fresh Pork Adeptly Navigates Tighter Market Spread & Tariff Disruption Third Quarter 2025 vs. Third Quarter 2024 ($MM’s) • Sales +12.0% • Price +12.0% • Volume ~flat • Adj. Operating Profit (63.8)% (1) Adjusted operating profit and adjusted operating profit margin are non-GAAP measures. Please see the appendix for a reconciliation of adjusted operating profit and adjusted operating profit margin to the most comparable GAAP measure. 0.5% 1.4% (1)
Page 17
17 Hog Production Continues to Grow Profitability Third Quarter 2025 vs. Third Quarter 2024 ($MM’s) • Sales +10.1% • Adj. Operating Profit +119.8% (1) Adjusted operating profit and adjusted operating profit margin are non-GAAP measures. Please see the appendix for a reconciliation of adjusted operating profit and adjusted operating profit margin to the most comparable GAAP measure. 10.9% 5.5%
Page 18
18 Strong Financial Position Creates Operational Flexibility (1) Ratio of net debt to adjusted EBITDA is defined as net debt divided by adjusted EBITDA for the twelve months ended September28, 2025 and December 29, 2024. Net debt is defined as long-term debt and finance lease obligations, including the current portion, minus cash and cash equivalents. Ratio of net debt to adjusted EBITDA is a non-GAAP measure. Please see the appendix for a reconciliation of ratio of net debt to adjusted EBITDA to the most comparable GAAP measure. (2) Liquidity is defined as cash and cash equivalents plus available borrowing capacity under our credit facilities. (3) Subject to Board discretion. Ratio of Net Debt to Adjusted EBITDA (1) Liquidity (2) ($MM) Capital Allocation Strategy Drive Growth Continue to invest in product innovation and marketing to drive profitable growth Reinvest in Business Continue to improve automation and other operating efficiencies Shareholder Return (3) Expected annual dividends of $1.00 per share Opportunistic M&A Disciplined execution of opportunistic, complementary M&A in North America
Page 19
19 Low-to-Mid-Single-Digit Growth Compared to FY 24 FY 2025 Guidance Raised Sales Adj. Operating Profit (1) Capex Effective Tax Rate $1,060 - $1,110 MM $1,225 - $1,325 Packaged Meats Fresh Pork Hog Production $350 - $400 MM 23% - 25% $150 - $200 MM $125 - $150 MM (1) The Company’s outlook for fiscal year 2025 includes adjusted operating profit and adjusted segment operating profit. The Company is not able to reconcile its fiscal year 2025 projected adjusted results to its fiscal year 2025 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort.
Page 20
Q&A
Page 21
Appendix
Page 22
22 Adjusted Net Income Reconciliation Three Months Ended September 28, 2025 September 29, 2024 $ millions Net income from continuing operations attributable to Smithfield $248 $202 Hog Production Reform (1) 1 3 Insurance recoveries (2) (2) (3) Company-owned life insurance gain (3) (17) — Income tax effect of non-GAAP adjustments (4) — — Adjusted net income from continuing operations attributable to Smithfield $230 $203 Net income from continuing operations attributable to Smithfield per diluted common share $0.63 $0.53 Adjusted net income from continuing operations attributable to Smithfield per diluted common share $0.58 $0.53 (1) Consists of loss on asset disposals, employee termination benefits, accelerated depreciation charges and other exit costs associated with our Hog Production Reform initiative. (2) Consists of gains recognized in connection with settlements of insurance claims, including a gain recognized in the third quarter of 2024 for losses incurred in connection with past litigation. (3) Consists of a gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies. (4) Represents the tax effects of the non-GAAP adjustments based on a statutory tax rate of 25.7%.
Page 23
23 Adjusted EBITDA Reconciliation Three Months Ended Nine Months Ended Twelve Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 September 28, 2025 December 29, 2024 $ millions Net income from continuing operations $252 $209 $667 $581 $884 $798 Interest expense, net 11 17 33 52 47 66 Income tax expense 71 69 205 165 310 271 Depreciation and amortization 82 88 248 253 335 339 EBITDA from continuing operations $416 $382 $1,152 $1,050 $1,576 $1,474 Litigation charges — — 73 — 73 — Reduction in workforce (1) — — 9 — 9 — Office closures (2) — — 4 — 4 — Plant closure — — 1 — 1 — Hog Production Reform (3) 1 3 — 12 (21) (9) Incremental costs from destruction of property — — — 4 — 4 Employee retention tax credits (4) — — (10) (87) (10) (87) Insurance recoveries (5) (2) (3) (36) (4) (36) (4) Company-owned life insurance gain (6) (17) — (17) — (17) — Adjusted EBITDA from continuing operations $398 $383 $1,175 $976 $1,577 $1,379 Net income margin from continuing operations 6.7 % 6.3 % 5.9 % 5.7 % 5.8 % 5.6 % Adjusted EBITDA margin from continuing operations 10.6 % 11.5 % 10.4 % 9.6 % 10.3 % 9.7 % (1) Consists of severance costs associated with a workforce reduction initiative. (2) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri. (3) Consists of contract termination costs, loss on asset disposals, employee termination benefits and other exit costs associated with our Hog Production Reform initiative. Includes a $32 million gain on the sale of our Utah hog farms and a $6 million gain on the sale of breeding stock to Murphy Family Farms in the fourth quarter of 2024. (4) Represents the recognition of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act. (5) Consists of gains recognized in connection with settlements of insurance claims associated with property damage. Also includes settlements of insurance claims in the second quarter of 2025 and the second and third quarters of 2024 for losses incurred in connection with past litigation. (6) Consists of a gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.
Page 24
24 Net Debt to Adjusted EBITDA Reconciliation Trailing 12 Months Ended September 28, 2025 December 29, 2024 $ millions Current portion of long-term debt and capital lease $3 $3 Long-term debt and finance lease obligations 2,001 1,999 Total debt and finance lease obligations $2,004 $2,002 Less: Cash and cash equivalents (773) (943) Net debt $1,231 $1,059 Net income from continuing operations $884 $798 Adjusted EBITDA from continuing operations $1,577 $1,379 Ratio of total debt and finance lease obligations to net income from continuing operations 2.3 x 2.5 x Ratio of net debt to adjusted EBITDA from continuing operations 0.8 x 0.8 x
Page 25
25 Adjusted Operating Profit Reconciliation (1) Includes our Mexico and Bioscience operations. (2) Represents general corporate expenses for management and administration of the business. (3) Includes certain costs of sales, SG&A and operating gains that we do not allocate to our segments. (4) Consists of loss on asset disposals, accelerated depreciation charges and other exit costs associated with our Hog ProductionReform initiative. (5) Consists of a gain recognized in the third quarter of 2024 for the settlement of a claim with an insurance carrier to recoverlosses incurred in connection with past litigation. Three Months Ended September 28, 2025 Packaged Meats Fresh Pork Hog Production Other (1) Corporate (2) Unallocated (3) Consolidated Operating profit (loss) $226 $10 $89 $10 $(24) $(1) $310 Hog Production Reform — — — — — 1 1 Insurance recoveries — — — — — (2) (2) Adjusted operating profit (loss) $226 $10 $89 $10 $(24) $(1) $310 Operating profit (loss) margin 10.8 % 0.5 % 10.9 % 7.7 % NM NM 8.3 % Adjusted operating profit (loss) margin 10.8 % 0.5 % 10.9 % 7.7 % NM NM 8.3 % Three Months Ended September 29, 2024 Packaged Meats Fresh Pork Hog Production Other (1) Corporate (2) Unallocated (3) Consolidated Operating profit (loss) $239 $28 $40 $20 $(28) $(15) $285 Hog Production Reform (4) — — — — — 3 3 Insurance recoveries (5) — — — — — (3) (3) Adjusted operating profit (loss) $239 $28 $40 $20 $(28) $(14) $286 Operating profit (loss) margin 12.5 % 1.4 % 5.5 % 17.1 % NM NM 8.5 % Adjusted operating profit (loss) margin 12.5 % 1.4 % 5.5 % 17.1 % NM NM 8.6 %
Page 26
L e a r n m o r e a b o u t t h e g o o d w o r k w e d o a t goodiswhatwedo.com