SEB - Seaboard: Exposure To Pork And Turkey At A 24% Discount To TBV

2024-02-18 10:40:00 ET

Summary

• Seaboard's pork division has been performing poorly due to low pork prices and high production costs.
• The company reported a 15% decrease in total revenue for FY 2023, resulting in a significant decrease in gross income and operating income.
• Seaboard expects the pork division to break even this year and has set a total capex budget of $555M for further investment.

Introduction

Seaboard ( SEB ) is a holding company active in several different key divisions . The pork segment includes a fully vertically integrated pork producer with an interesting biodiesel angle: The pork fat from its own facilities is converted into fuel. The marine segment provides shipping services in the US and the Caribbean (and South America). This division owns and charters vessels, as well as (refrigerated) containers. The activity that will likely ring a bell is Seaboard’s 52.5% stake in the Butterball company....

For further details see: