(Corrects segment profits in paragraph 10 to 5.7% drop for packaged meats and 64% drop for fresh pork, not an 8.7% and 39% fall, respectively)
(Reuters) -U.S. pork processor Smithfield Foods posted a jump in third-quarter revenue and profit on Tuesday, benefiting from resilient demand for higher-priced packaged meats and fresh pork.
Smithfield, the biggest pork processor in the U.S., also raised the midpoint of its annual profit forecast range, sending its shares up 6.7% before the bell.
Its strong quarterly results reflect a steady market for protein-rich staples such as pork, meat cuts and sausages, as persistent inflation and still-high cost-of-living prompt consumers to prioritize home-cooked meals.
“Despite persistent higher raw material costs and cautious consumer spending, our Packaged Meats segment posted the second-best third-quarter profit on record,” CEO Shane Smith said.
Smithfield has been working to rein in its expenses amid a spike in raw material costs and cautious consumer spending.
Meanwhile, higher prices from President Donald Trump’s sweeping tariffs have further dampened sentiment.
The Virginia-based company said in August it had resumed exports to China that had been crippled by import duties. In China, imports of U.S. pork face a 57% tariff, according to industry data.
The meatpacker now expects annual adjusted operating profit in the range of $1.23 billion to $1.33 billion, compared with its prior forecast of $1.15 billion to $1.35 billion.
It maintained its 2025 sales forecast of a low-to-mid-single-digit percentage rise from a year earlier.
Operating profit in its largest packaged meats segment fell 5.7% in the third quarter, while profits in the fresh pork division posted a nearly 64% drop.
The company’s sales rose 12.4% to $3.75 billion in the quarter ended September 28.
It earned quarterly profit of 58 cents per share on an adjusted basis from continuing operations, compared with 53 cents a year earlier.
(Reporting by Savyata Mishra in Bengaluru and Tom Polansek in Chicago; Editing by Sriraj Kalluvila and Shreya Biswas)
