Smithfield Reports Record Results, Despite Writing off China Due to Tariffs

China? Who needs China? Despite tariffs and a later-than-usual Easter holiday, Smithfield Foods turned in a stellar first quarter. The company reported record first-quarter adjusted operating profit of $326 million on sales of $3.771 billion.

While still being majority-owned by a Chinese firm, the American pork company has largely written off that part of the Asian market. “With China no longer essentially available...,” is how President/CEO Shane Smith began part of his talk.

“We can’t overestimate the importance of China to the overall [pork] industry,” he continued. “In 2024 China was responsible for $1 billion of our sales. It’s kept hog prices up.”

But that’s just 3% of company revenue. “While [China] is important, we believe we have options,” Smith added. Exports to more than 30 countries account for 13% of company sales, and the vast majority of exports are fresh pork, much of it cuts that the American market has no desire for.

That nearly $3.8 billion in quarterly sales was up 9.5% from the year-earlier period. Adjusted net income in the first quarter was $227 million, nearly double the $123 million last year.

Smithfield Foods just launched its initial public offering of stock in January, selling 26 million shares. But China’s WH Group still controls about 90% of the company. WH Group and a predecessor company bought Smithfield in 2013.