Smithfield Foods Inc at Morgan Stanley Global Consumer & Retail Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : <_ALACRA_META_ABSTRACT>Smithfield is one of the world's largest vertically integrated pork producers and processors, major supplier of fresh and packaged meat products in the US and globally. But that's just a high-level start. Shane, maybe for those who might be newer to the Smithfield story in the room, can you start with an overview of the business today, your scale across the various segments, and how the One Smithfield operating model has helped drive the performance you've delivered in this first year back in the public market?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Great. Great overview. Thank you. Definitely a lot to --

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : You did a great job. Maybe we can just start with demand. This is a consumer conference. There's been a lot of discussion around consumer demand. Pork is a category that's benefited from this protein [crease], if you will. The low-end consumer, there's been a lot of discussion around pressure on that segment. As you look across retail foodservice exports, your main demand drivers, how would you describe demand for pork and Smithfield pork? Overall, how are you thinking about that evolving in 2026?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Great. More of a macro issue but hasn't impacted your ability to deliver --

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : On SNAP, specifically, was the [laps-and-fats] payments. I think when you reported 3Q, you talked about -- I don't want to put words in your mouth -- to move some [prudence] in the fourth quarter. (inaudible) guide in Package Metas is just around the potential and what we didn't really know was going to happen with SNAP payments. Now, as you look back into November, any discernible impact you saw in your retail business as SNAP payments lapsed?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Got it. Helpful. Maybe just turning to supply, the hog prices have eased a bit since you last reported. They've come back a little bit more recently. But they've certainly been volatile. From your standpoint, where do you think we are in the hog cycle today? What's your outlook for hog prices over the next six months or so? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 7:15PM, SFD.OQ - Smithfield Foods Inc at Morgan Stanley Global Consumer & Retail Conference

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Maybe stable prices (multiple speakers) --

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : As you translate that to the cut-out in your Packaged Meats business on the raw materials side of things, how are you thinking about that for the raw material side has been bit of a pressure point this year, just as prices have continued to climb? As we look to 2026, has the set-up improved in your minds, as you think about the profitability and the margin on that Package Meats business?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Okay. Let's talk a little bit more about Packaged Meats, the core driver of your business. You've said consistently since you came back to the public markets earlier this year that the strategy in that segment is to grow profit as mix, innovation, and volume growth. This year, we've seen a lot of positive tailwinds from mix and innovation; a bit more pricing, just given what the cut-outs have done. As you look ahead in Package Meats and those drivers, how are you thinking about the ability to continue to grow profit? What are the --?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : You talked about it a bit but this whole idea of mix shift and (inaudible) thing from a holiday ham to Prime Fresh, you've delivered really nice in Packaged Meats, in particular. You've done that. I think we might have talked about this on the earnings call last quarter but any way to describe what inning you're in? Are there more products you can turn hams into --?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Maybe we can talk about innovation. You've said you turned it on. You've had good success, both in retail and foodservice. Can you just give some examples of how that's manifesting in your market share and maybe your ability to not have to promote as much or manage maybe challenging foodservice [requirements] (inaudible) --

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : We can talk -- shift a little bit to the other segments and just start with the benefits of vertical integration. You touched on it a bit. I think that's an impressive point, in terms of the record profit in the company but not any one segment. Maybe that's the obvious answer, in terms of the benefits, but what are the benefits versus competitors that aren't vertically integrated, especially as maybe there's different structural changes occurring in the market, as well?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : On Hog Production, specifically, it's been a nice year for the segment. The higher hog prices certainly helped. The forward curve, even though prices have come down, does suggest the industry should still be slightly profitable, as we look to next year. I think you mentioned you may be opportunistic as you look ahead to the half on the last quarter call, as well. Putting all that together and what you said about the hog price outlook and what you're seeing in the industry, how are you thinking about, just, the Hog Production outlook broadly and including other structural changes you're making, as well?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Great. Sticking with Hog Production, on the -- cost screens are most important. But you talked about this a little bit, just, you've optimized the footprint that you produce, the size of the herd; you talked about genetics and improving herd genetics a bit at the beginning. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 7:15PM, SFD.OQ - Smithfield Foods Inc at Morgan Stanley Global Consumer & Retail Conference You said last quarter on the call, I think there's still more work to do there.

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Can you elaborate on that?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Great. And then, maybe lastly, with Fresh Pork, spreads were compressed this year but you still delivered solid profitability. What's working well in your efforts capture the full value of hog, call it?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Right. Maybe putting it all together, potential for recovery in Packaging Meats margins -- as raw materials come down, you continue to drive mix shift in innovation. It sounds like good outlook for Hog Production at this point, still; and continue to execute on Fresh Pork. You said yourself, you're bullish. Without asking for guidance, you've delivered a record year this year, how do you think about compounding that, as we look ahead to 2026?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Great. We've couple minutes left. I wanted to open it up to see if there's any questions in the room. It's the afternoon. That room is a little tired.

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Okay. Okay. Capital allocation is always a great place to end. Really strong balance sheet. How are you thinking about paying a nice dividend? How are you thinking about the capital allocation priorities today? Maybe you can leave M&A in there, specifically, and just how your -- what your priorities are with --?

Question: Megan Alexander - Morgan Stanley & Co Ltd - Analyst : Great. I think that's an awesome place to end. Thank you, Shane. Thank you for being here. Thanks, everyone, for joining. Hope everyone has a great holiday.