SEB Latest Report

Seaboard's Financial Performance

Based on the provided data, Seaboard (stock symbol: SEB) had a total operating revenue of $2.482 billion as of December 31, 2024, compared to $2.282 billion as of December 31, 2023. The year-on-year change in total operating revenue was: Seaboard's total operating revenue in 2024 increased by $200 million, or approximately 8.77% compared to 2023. Despite the increase in total operating revenue, its net sales performance showed a decline, indicating potential market challenges.

Key Financial Data

1. Seaboard's total operating revenue in 2024 was $2.482 billion, an increase of $200 million from $2.282 billion in 2023, reflecting the company's positive growth in revenue.

2. Seaboard's net sales in 2024 were $9.1 billion, a decrease of $50 million from $9.562 billion in 2023, mainly due to reduced sales in the CT&M segment and declining commodity prices.

3. In the turkey business, Butterball's net income decreased by 63% year-on-year, mainly due to a decrease in gross margin.

4. Despite the overall decline in sales, Pork segment's operating income improved, indicating an increase in its gross margin.

5. Seaboard's competitors performed well in 2024, such as China National Heavy Industries' operating revenue grew by 177% year-on-year.

Peer Comparison

1. Industry-wide analysis: The overall industry's operating revenue was affected by fluctuations in commodity prices, and other companies in Seaboard's industry performed weakly overall, indicating unstable market demand.

2. Peer evaluation analysis: Seaboard's decline in net sales contrasts with the strong growth of its competitors, showing pressure in its market performance. Although Seaboard's total operating revenue increased, considering the performance of its peers, its market competitiveness needs further attention.

Summary

Seaboard's total operating revenue grew in 2024, but the overall decline in net sales highlights challenges in market demand and increased competition. The company's growth was mainly driven by the performance of specific segments, while the overall market environment showed uncertainty.

Opportunities

1. Seaboard can improve its product mix and gross margin to enhance overall sales performance.

2. Seaboard can adopt more competitive market strategies to compete for market share, based on its competitors' successful strategies.

3. The company can consider entering new markets or promoting new products to attract new customer groups and boost sales.

Risks

1. Fluctuations in commodity prices and declining market demand may further affect Seaboard's operating revenue.

2. Strong performances by competitors may lead to a further shrinkage of Seaboard's market share.

3. If the performance of turkey and agricultural products continues to decline, it may affect the company's overall profitability.