$SFD Smithfield Foods Inc | Driving Strategic Transformation & Operational Efficiency at an Attractive Valuation | TickerTrends.io

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Ticker: SFD
Sector: Consumer Defensive
Share Price: $20.87
Market Cap: 8.2B

Business Intro:

Smithfield Foods, Inc. is an American food company headquartered in its namesake town of Smithfield, Virginia, where it was founded in 1936. Originally starting as a pork processing operation named The Smithfield Packing Company, the company grew significantly through a series of acquisitions beginning in the 1980s, eventually becoming the largest fresh pork processor in the United States. In 2013, Smithfield was taken private and became a wholly owned subsidiary of the Hong Kong-based WH Group. Following this acquisition, the company focused on integrating its various operations under the "One Smithfield" initiative, which unified operations, brands, and employees. More recently, in August 2024, Smithfield completed a carve-out of its European operations to WH Group, allowing the company to focus primarily on its North American markets.

Smithfield is an industry leader in value-added packaged meats and fresh pork. The company produces and distributes a wide variety of packaged meats and fresh pork products both domestically and internationally, employing approximately 34,000 people in the U.S. and 2,500 in Mexico. Smithfield markets its products under a portfolio of well-known brands, including Smithfield, Eckrich, and Nathan’s Famous, among others. Its operations are conducted through three main reportable segments: Packaged Meats, Fresh Pork, and Hog Production, along with additional operations in Mexico and Bioscience. The company maintains high-quality standards and strong relationships with thousands of U.S. family farmers.

The Packaged Meats segment processes fresh meat into products like bacon, sausage, hot dogs, deli meats, and ready-to-eat meals, selling primarily to retail and foodservice customers in the U.S. under its core brands and private labels. The Fresh Pork segment processes live hogs into primal and sub-primal cuts, supplying about one-third of its output internally to the Packaged Meats segment and selling the rest externally to domestic and export markets. The Hog Production segment raises hogs on company-owned and contract farms in the U.S., supplying nearly all its animals to the Fresh Pork segment. Smithfield's supply chain relies on these company-owned and contract farms, as well as over 4,000 independent U.S. family farms that meet its quality standards.

Smithfield's mission, "Good food. Responsibly.," guides its operations. The company aims to provide wholesome, safe, and affordable food while focusing on the care of its people, communities, animals, and the planet. Smithfield operates 39 production facilities in the U.S. and one in Mexico. Its Bioscience division utilizes byproducts from hog processing to manufacture heparin products for the healthcare industry. The company continues to invest in innovation across its products, packaging, and manufacturing processes, striving to be a trusted food and protein company in North America and globally.

SEGMENTS:

Packaged Meats:

The U.S. value-added packaged meat industry encompasses a wide array of meat products that have undergone processing to enhance their value through convenience, flavor, or extended shelf life. This includes items such as pre-cooked bacon, marinated chicken breasts, seasoned sausages, deli meats, and hot dogs, representing a departure from basic butchered and packaged meats.