Yasmin Daswani's questions to SMITHFIELD FOODS (SFD) leadership • Q1 2025
Question
Yasmin Daswani from Bank of America asked how the continued compression in implied spreads for Fresh Pork processing is expected to impact the segment's profitability in the second quarter.
Answer
CFO Mark Hall acknowledged that seasonal spread compression is expected in Q2 and Q3 but stated that the company is less bound by industry spreads due to cost structure improvements and a focus on value-added products. President of Fresh Pork Donovan Owens emphasized that significant efficiency gains from automation are helping to offset market pressures. President & CEO Shane Smith also added that the later Easter delayed some Fresh Pork promotional activity, which should provide a lift in May and June.