Smithfield Foods announced expectations for growth in annual sales and adjusted operating profit due to the high demand for its packaged meats in grocery stores and the cost-saving measures implemented. The company's first quarterly results after becoming a public entity in January showcased its shift towards purchasing more hogs instead of owning them, aiding in cost reduction amidst challenges in global demand and rising livestock expenses.

In response to the changing market conditions, Smithfield decided not to close more pork plants in the U.S. but to concentrate on its packaged meats portfolio to meet consumer demands for healthier meal options at home. The packaged meats segment, a significant portion of the company's sales, saw a 2.2% increase from the previous year in the fourth quarter.

Smithfield anticipates a fiscal 2025 adjusted operating profit between $1.10 billion and $1.30 billion, positioned above the $1.12 billion reported for the preceding 12 months. Despite concerns over tariff risks, the company benefited from the U.S. government's decision to permanently allow faster operations at pork and poultry plants.

The company expects a rise in total annual net sales within the low to mid-single-digit percentage range, contrasting with the 3.4% decline reported in fiscal 2024. Total sales decreased by 1.2% in the fourth quarter to $3.95 billion, accompanied by an increase in profit per share to 54 cents from a loss of 25 cents in the prior year.