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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Seaboard Corporation Reports on Butterball Subsidiary for Q1 2024

05/07/2024

Seaboard Corporation is the majority shareholder in Butterball LLC with 52.5 percent of equity The subsidiary is ranked as the second largest turkey producer in the U.S.

 

The Seaboard Corporation SEC 10-Q filing recorded net income from Butterball of $7 million  corresponding to a Q1 net income for Butterball of $13.5 million based on shareholding. The Company statement noted:- “Net income for Butterball decreased $33 million for the three-month period of 2024 compared to the same period in 2023. The decrease in net income was primarily the result of a $38 million decrease in sales due to a 7 percent decrease in the average selling price related to a decline in commodity pricing and a 3 percent decrease in volumes sold. The decrease in sales was partially offset by a 14 percent decrease in production costs, primarily related to lower feed costs. Management is unable to predict market prices for turkey products or the cost of feed for future periods; however, management anticipates this segment will be profitable for the remainder of 2024”.

 

At the end of FY 2023 on December 31st 2023, Butterball LLC posted assets of $1,120 million, with $172 million represented by goodwill and intangibles.  Given total liabilities of $408 million the shareholders’ equity is $702 of which $365 million accrues to the majority shareholder.


 
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