April 28 (Reuters) – Smithfield Foods beat Wall Street estimates for first-quarter sales and profit on Tuesday and stuck to its annual forecasts, helped by steady demand for packaged meat products such as bacon, ham, sausages and hot dogs.
U.S. meat demand has held up in recent months as consumers look to cut food bills and cook more meals at home.
The company has relied on its broad portfolio, including premium brands and private-label packaged meats, to retain budget-conscious shoppers trading down, while growth in higher-margin, value‑added packaged meats has helped support profits.
Private-label products accounted for roughly 40% of Smithfield’s retail sales in the last fiscal year, its executives said in March.
Beef costs have remained elevated due to tight cattle supplies, prompting companies such as Smithfield Foods to raise prices to protect margins.
Sales in Smithfield’s packaged meats segment rose 6.2% during the quarter from last year, offsetting a 1.1% slip in the fresh pork business.
The largest U.S. pork processor, which makes packaged meats and fresh pork products for retail and foodservice customers, maintained its annual forecasts as consumer-facing companies remain wary of renewed inflation concerns linked to higher energy prices.
“We are actively managing inflationary input costs and consumer spending trends,” CEO Shane Smith said.
It expects fiscal 2026 sales to grow in the low-single-digits range from fiscal year 2025 and adjusted operating profit between $1.33 billion and $1.48 billion.
The company has been able to lower feed costs and scale down hog production, which have also helped cushion the impact of cautious consumer spending.
For the three months ended March 29, Smithfield logged sales of $3.80 billion, beating analysts’ average estimates of $3.70 billion, according to data compiled by LSEG.
It earned 64 cents per share on an adjusted basis, above estimates of 59 cents.
(Reporting by Savyata Mishra in Bengaluru; Editing by Devika Syamnath)
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