• Pilgrim’s Pride Reports Third Quarter 2024 Results with $4.6 Billion in Net Sales and Operating Income of $508.4 Million

    ソース: Nasdaq GlobeNewswire / 30 10 2024 16:30:01   America/New_York

    GREELEY, Colo., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's largest poultry producers, reports its third quarter 2024 financial results.

    Third Quarter Highlights

    • Net Sales of $4.6 billion.
    • Consolidated GAAP operating income margin of 11.1%.
    • GAAP Net Income of $350.0 million and GAAP EPS of $1.47. Adjusted Net Income of $387.0 million or Adjusted EPS of $1.63.
    • Adjusted EBITDA of $660.4 million, or a 14.4% margin.
    • Our U.S. Fresh portfolio continued to improve through progress in operational excellence, strong demand, and enhanced mix. Overall chicken demand was strong given competitive pricing and value delivered to the consumer, with our Key Customers expanding faster than category averages in the Case Ready and Small Bird segments. The Commodity segment improved given continued progress in production efficiencies and positive market fundamentals.
    • Diversification through value-added offerings continues to accelerate. Our branded prepared foods portfolio expanded across retail and foodservice through increased distribution and promotional activity.  
    • Europe improved Adjusted EBITDA nearly 40% versus prior year given recent network and back office optimization efforts, enhanced mix with Key Customers, and further diversification through branded offerings and innovation. Richmond® and Fridge Raiders® continued to grow faster than category averages and our innovation efforts continue to be recognized by the market with multiple industry awards.
    • Mexico results followed normal seasonality, while continuing to cultivate partnerships with Key Customers as sales grew ahead of the market. Diversification efforts continued to progress as branded sales rose over 20%. Operational excellence efforts to expand production and mitigate risk remained on track.  
    • Stronger liquidity position given healthy cash generation throughout the quarter. Net leverage ratio of 0.65x Adjusted EBITDA, providing the foundation to execute the company’s growth strategy and create value for our shareholders.
    • Pilgrim’s continued to demonstrate progress against its ESG aspirations as detailed in the publication of the 2023 Sustainability Report. Since 2019, performance against the Global Safety Index has improved by 69%, and Scope 1 and 2 absolute GHG emissions have been reduced by 17%. Also, since 2021, over 1,500 team members have signed up for tuition-free, higher education programs through our Better Futures initiative.
    (Unaudited)Three Months Ended Nine Months Ended
     September 29,
    2024
     September 24,
    2023
     Y/Y Change September 29,
    2024
     September 24,
    2023
     Y/Y Change
     (In millions, except per share and percentages)
    Net sales$        4,585.0   $        4,360.2           +5.2 % $        13,506.2   $        12,833.9           +5.2 %
    U.S. GAAP EPS$        1.47   $        0.51           +188.2 % $        3.58   $        0.79           +353.2 %
    Operating income$        508.4   $        206.4           +146.3 % $        1,199.4   $        338.0           +254.9 %
    Adjusted EBITDA(1)$        660.4   $        324.0           +103.8 % $        1,688.2   $        724.7           +133.0 %
    Adjusted EBITDA margin(1)         14.4 %          7.4 %         +7.0pts          12.5 %          5.6 %         +6.9pts


    (1)Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.
      

    “Throughout the quarter, we continued to emphasize operational excellence, diversify our portfolio and cultivate partnerships with Key Customers to drive value for the consumer. Our unrelenting focus on quality, service and innovation is reflected in our performance,” said Fabio Sandri, Pilgrim’s President and Chief Executive Officer.   

    In the U.S., the relative affordability and availability of chicken drove increased demand across retail and food service. Case Ready and Small Bird drove profitable growth as demand improved from Key Customers and there was continued progress in operational excellence. In Big Bird, profitability grew from sustained improvements in production efficiencies, lower input costs, and enhanced commodity cutout values. Similarly, Prepared continued to diversify the portfolio through incremental distribution across retail and foodservice.  

    “We partnered closely with our Key Customers to further cultivate consumer demand. As such, our approach accommodated changing input costs, enabling further investment in promotional activity, generating store traffic and driving growth well above the category. These efforts were amplified by attractive market fundamentals, especially in the Big Bird segment,” Sandri said.   

    Europe realized its highest quarterly adjusted EBITDA to date given continued progress in operational excellence, further diversification through branded offerings and strengthening Key Customer partnerships. New product introductions continue to gain momentum as the business launched over 280 new products during the quarter.  

    “Our new product pipeline has generated significant marketplace interest. We received multiple industry awards during the quarter for innovation, quality and functionality for our recently launched items. Given these efforts, we can further scale partnerships with Key Customers, enhance mix through branded offerings, and grow our prepared portfolio,” said Sandri.  

    Mexico continued to build its presence with Key Customers across retail and foodservice and further diversify its portfolio through brands. Investments in operational excellence to build capacity and drive operational efficiencies remained on track.

    “Mexico continued to successfully drive all pillars of our strategies during typical seasonality for the business. As a result, we are increasingly well positioned to capture both short- and long-term growth opportunities,” remarked Sandri.  

    Pilgrim’s provided an update on its progress to become an industry leader in sustainability through the publication of its 2023 Sustainability Report. The report included an update on a variety of topics, including the company’s exceptional safety performance, product integrity standards, and GHG emissions reductions.  

    “Sustainability is critical to achieve our vision of becoming the best and most respected company in our industry and creating a better future for our team members and their families,” said Sandri.

    Conference Call Information

    A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, Oct. 31, at 7 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.

    To pre-register, go to: https://dpregister.com/sreg/10193583/fdb3c986c1 

    You may also reach the pre-registration link by logging in through the investor section of our website at https://ir.pilgrims.com in the “Events & Presentations” section.

    For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.”

    Replays of the conference call will be available on Pilgrim’s website approximately two hours after the call concludes and can be accessed through the “Investor” section of www.pilgrims.com.

    About Pilgrim’s Pride

    Pilgrim’s employs approximately 62,000 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, the Republic of Ireland and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.

    Forward-Looking Statements

    Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. Without limiting the foregoing, words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date hereof, and the Company undertakes no obligation to update any such statement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

    Contact:Andrew Rojeski
     Head of Strategy, Investor Relations, & Sustainability
     IRPPC@pilgrims.com 
     www.pilgrims.com 


     
    PILGRIM’S PRIDE CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
        
     (Unaudited)  
     September 29, 2024 December 31, 2023
     (In thousands)
    Cash and cash equivalents$        1,877,981  $        697,748 
    Restricted cash and restricted cash equivalents         6,431           33,475 
    Investment in available-for-sale securities         10,099           — 
    Trade accounts and other receivables, less allowance for credit losses         1,067,650           1,129,178 
    Accounts receivable from related parties         1,964           1,778 
    Inventories         1,780,925           1,985,399 
    Income taxes receivable         63,418           161,062 
    Assets held for sale         5,640           — 
    Prepaid expenses and other current assets         241,365           195,831 
    Total current assets         5,055,473           4,204,471 
    Deferred tax assets         30,317           4,890 
    Operating lease assets, net         267,812           266,707 
    Other long-lived assets         59,110           35,646 
    Intangible assets, net         862,400           853,983 
    Goodwill         1,312,806           1,286,261 
    Property, plant and equipment, net         3,112,616           3,158,403 
    Total assets$        10,700,534  $        9,810,361 
        
    Accounts payable$        1,391,270  $        1,410,576 
    Accounts payable to related parties         19,404           41,254 
    Revenue contract liabilities         85,129           84,958 
    Accrued expenses and other current liabilities         1,001,263           926,727 
    Income taxes payable         89,815           31,678 
    Current maturities of long-term debt         546           674 
    Total current liabilities         2,587,427           2,495,867 
    Noncurrent operating lease liabilities, less current maturities         206,796           203,348 
    Long-term debt, less current maturities         3,184,080           3,340,841 
    Deferred tax liabilities         472,183           385,548 
    Other long-term liabilities         31,382           40,180 
    Total liabilities         6,481,868           6,465,784 
    Common stock         2,623           2,620 
    Treasury stock         (544,687)          (544,687)
    Additional paid-in capital         1,988,591           1,978,849 
    Retained earnings         2,921,657           2,071,073 
    Accumulated other comprehensive loss         (163,590)          (176,483)
    Total Pilgrim’s Pride Corporation stockholders’ equity         4,204,594           3,331,372 
    Noncontrolling interest         14,072           13,205 
    Total stockholders’ equity         4,218,666           3,344,577 
    Total liabilities and stockholders’ equity$        10,700,534  $        9,810,361 


     
    PILGRIM’S PRIDE CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In thousands, except per share data)
    Net sales$        4,584,979  $        4,360,196  $        13,506,227  $        12,833,915 
    Cost of sales         3,901,009           4,014,314           11,746,722           12,036,561 
    Gross profit         683,970           345,882           1,759,505           797,354 
    Selling, general and administrative expense         144,780           138,569           478,017           420,683 
    Restructuring activities         30,836           940           82,070           38,684 
    Operating income         508,354           206,373           1,199,418           337,987 
    Interest expense, net of capitalized interest         41,597           45,645           114,041           135,459 
    Interest income         (22,099)          (12,115)          (48,308)          (23,343)
    Foreign currency transaction losses (gains)         (678)          8,924           (7,240)          43,462 
    Miscellaneous, net         7,935           (2,201)          5,153           (26,185)
    Income before income taxes         481,599           166,120           1,135,772           208,594 
    Income tax expense         131,609           44,553           284,321           20,488 
    Net income         349,990           121,567           851,451           188,106 
    Less: Net income attributable to noncontrolling interests         130           289           867           1,185 
    Net income attributable to Pilgrim’s Pride Corporation$        349,860  $        121,278  $        850,584  $        186,921 
            
    Weighted average shares of Pilgrim's Pride Corporation common stock outstanding:       
    Basic         237,123           236,787           236,953           236,702 
    Effect of dilutive common stock equivalents         768           560           733           542 
    Diluted         237,891           237,347           237,686           237,244 
            
    Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:       
    Basic$        1.48  $        0.51  $        3.59  $        0.79 
    Diluted$        1.47  $        0.51  $        3.58  $        0.79 


     
    PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     
     Nine Months Ended
     September 29, 2024 September 24, 2023
     (In thousands)
    Cash flows from operating activities:   
    Net income$        851,451  $        188,106 
    Adjustments to reconcile net income to cash provided by operating activities:   
    Depreciation and amortization         321,768           307,414 
    Deferred income tax expense (benefit)         45,220           (46,808)
    Asset impairment         26,633           4,011 
    Gain on early extinguishment of debt recognized as a component of interest expense         (11,211)          — 
    Stock-based compensation         9,205           5,236 
    Loan cost amortization         3,798           6,059 
    Accretion of discount related to Senior Notes         1,898           1,581 
    Loss (gain) on property disposals         1,104           (8,416)
    Loss (gain) on equity-method investments         (6)          330 
    Changes in operating assets and liabilities:   
    Trade accounts and other receivables         62,646           (65,183)
    Inventories         172,990           (12,957)
    Prepaid expenses and other current assets         (65,555)          (8,039)
    Accounts payable, accrued expenses and other current liabilities         79,672           12,224 
    Income taxes         151,902           40,463 
    Long-term pension and other postretirement obligations         13,135           (1,700)
    Other operating assets and liabilities         (23,858)          (22,723)
    Cash provided by operating activities         1,640,792           399,598 
    Cash flows from investing activities:   
    Acquisitions of property, plant and equipment         (316,949)          (432,339)
    Proceeds from property disposals         9,724           17,188 
    Proceeds from insurance recoveries         —           20,681 
    Cash used in investing activities         (307,225)          (394,470)
    Cash flows from financing activities:   
    Payments on revolving line of credit, long-term borrowings and finance lease obligations         (151,671)          (765,899)
    Proceeds from revolving line of credit and long-term borrowings         —           1,278,032 
    Proceeds from contribution (distribution) of capital under Tax Sharing Agreement between JBS USA Holdings and Pilgrim’s Pride Corporation         1,425           (1,592)
    Payments on early extinguishment of debt         (200)          — 
    Payments of capitalized loan costs         (16)          (10,275)
    Cash provided by (used in) financing activities         (150,462)          500,266 
    Effect of exchange rate changes on cash and cash equivalents         (29,916)          (1,036)
    Increase in cash, cash equivalents and restricted cash         1,153,189           504,358 
    Cash, cash equivalents and restricted cash, beginning of period         731,223           434,759 
    Cash, cash equivalents and restricted cash, end of period$        1,884,412  $        939,117 
     
     
    PILGRIM’S PRIDE CORPORATION
    Non-GAAP Financial Measures Reconciliation
    (Unaudited)


    “EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses (gains), (2) costs related to litigation settlements, (3) restructuring activities losses, (4) loss on settlement of pension obligations due to plan termination, (5) write-downs of inventory as a result of hurricane, (6) property insurance recoveries for property damage losses, and (7) net income attributable to noncontrolling interests. EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measures differently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted EBITDA
    (Unaudited)
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In thousands)
    Net income$        349,990  $        121,567  $        851,451  $        188,106 
    Add:       
    Interest expense, net(a)         19,498           33,530           65,733           112,116 
    Income tax expense         131,609           44,553           284,321           20,488 
    Depreciation and amortization         110,470           104,300           321,768           307,414 
    EBITDA         611,567           303,950           1,523,273           628,124 
    Add:       
    Foreign currency transaction losses (gains)(b)         (678)          8,924           (7,240)          43,462 
    Litigation settlements(c)         —           10,500           72,190           34,700 
    Restructuring activities losses(d)         30,836           940           82,070           38,684 
    Loss on settlement of pension from plan termination(e)         10,709           —           10,709           — 
    Inventory write-down as a result of hurricane(f)         8,075           —           8,075           — 
    Minus:       
    Property insurance recoveries(g)         —           —           —           19,086 
    Net income attributable to noncontrolling interest         130           289           867           1,185 
    Adjusted EBITDA$        660,379  $        324,025  $        1,688,210  $        724,699 


    (a)Interest expense, net, consists of interest expense less interest income.
    (b)Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
    (c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
    (d)Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.
    (e)This represents a loss recognized on the settlement of pension plan obligations related to an ongoing plan termination of our two U.S. defined benefit plans. We expect the termination to be substantially complete by the end of the year.
    (f)This primarily represents broiler losses incurred as a result of Hurricane Helene in late September 2024.
    (g)This represents property insurance recoveries primarily for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.
      

    The summary unaudited consolidated income statement data for the twelve months ended September 29, 2024 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine months ended September 24, 2023 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 31, 2023 and (2) the applicable unaudited consolidated income statement data for the nine months ended September 29, 2024.

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of LTM Adjusted EBITDA
    (Unaudited)
              
     Three Months Ended LTM Ended
     December 31,
    2023
     March 31,
    2024
     June 30,
    2024
     September 29,
    2024
     September 29,
    2024
     (In thousands)
    Net income$        134,211  $        174,938  $        326,523  $        349,990  $        985,662 
    Add:         
    Interest expense, net         54,505           30,897           15,338           19,498           120,238 
    Income tax expense         22,417           52,062           100,650           131,609           306,738 
    Depreciation and amortization         112,486           103,350           107,948           110,470           434,254 
    EBITDA         323,619           361,247           550,459           611,567           1,846,892 
    Add:         
    Foreign currency transaction losses (gains)         (22,892)          (4,337)          (2,225)          (678)          (30,132)
    Litigation settlements         4,700           940           71,250           —           76,890 
    Restructuring activities losses         5,661           14,559           36,675           30,836           87,731 
    Loss on settlement of pension from plan termination         —           —           —           10,709           10,709 
    Inventory write-down as a result of hurricane         —           —           —           8,075           8,075 
    Minus:         
    Property insurance recoveries         2,038           —           —           —           2,038 
    Net income (loss) attributable to noncontrolling interest         (442)          517           220           130           425 
    Adjusted EBITDA$        309,492  $        371,892  $        655,939  $        660,379  $        1,997,702 


    EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe it is frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of EBITDA Margin
    (Unaudited)
                    
     Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In thousands)
    Net income$        349,990  $        121,567  $        851,451  $        188,106           7.63 %          2.79 %          6.30 %          1.47 %
    Add:               
    Interest expense, net         19,498           33,530           65,733           112,116           0.43 %          0.77 %          0.49 %          0.87 %
    Income tax expense         131,609           44,553           284,321           20,488           2.87 %          1.02 %          2.11 %          0.16 %
    Depreciation and amortization         110,470           104,300           321,768           307,414           2.40 %          2.39 %          2.38 %          2.39 %
    EBITDA         611,567           303,950           1,523,273           628,124           13.33 %          6.97 %          11.28 %          4.89 %
    Add:               
    Foreign currency transaction losses (gains) (678)  8,924   (7,240)  43,462   (0.01)%  0.20 %  (0.05)%  0.33 %
    Litigation settlements         —           10,500           72,190           34,700           — %          0.24 %          0.53 %          0.27 %
    Restructuring activities losses         30,836           940           82,070           38,684           0.67 %          0.02 %          0.61 %          0.30 %
    Loss on settlement of pension from plan termination         10,709           —           10,709           —           0.23 %          — %          0.08 %          — %
    Inventory write-down as a result of hurricane         8,075           —           8,075           —           0.18 %          — %          0.06 %          — %
    Minus:               
    Property insurance recoveries         —           —           —           19,086           — %          — %          — %          0.15 %
    Net income attributable to noncontrolling interest         130           289           867           1,185           — %          0.01 %          0.01 %          0.01 %
    Adjusted EBITDA$        660,379  $        324,025  $        1,688,210  $        724,699           14.40 %          7.42 %          12.50 %          5.63 %
                    
    Net sales$        4,584,979  $        4,360,196  $        13,506,227  $        12,833,915  $        4,584,979   $        4,360,196   $        13,506,227   $        12,833,915  


    Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted EBITDA
    (Unaudited)
                    
     Three Months Ended Three Months Ended
     September 29, 2024 September 24, 2023
     U.S. Europe Mexico Total U.S. Europe Mexico Total
     (In thousands) (In thousands)
    Net income$        278,241  $        36,209  $        35,540  $        349,990  $        31,124  $        35,743  $        54,700  $        121,567 
    Add:               
    Interest expense, net(a)         30,734           (4,195)          (7,041)          19,498           42,331           (649)          (8,152)          33,530 
    Income tax expense         101,478           14,038           16,093           131,609           20,953           5,550           18,050           44,553 
    Depreciation and amortization         70,121           34,959           5,390           110,470           63,052           35,927           5,321           104,300 
    EBITDA         480,574           81,011           49,982           611,567           157,460           76,571           69,919           303,950 
    Add:               
    Foreign currency transaction losses (gains)(b)         (1)          202           (879)          (678)          6,168           2,933           (177)          8,924 
    Litigation settlements(c)         —           —           —           —           10,500           —           —           10,500 
    Restructuring activities losses(d)         —           30,836           —           30,836           —           940           —           940 
    Loss on settlement of pension from plan termination(e)         10,709           —           —           10,709           —           —           —           — 
    Inventory write-down as a result of hurricane(f)         8,075           —           —           8,075           —           —           —           — 
    Minus:               
    Net income attributable to noncontrolling interest         —           —           130           130           —           —           289           289 
    Adjusted EBITDA$        499,357  $        112,049  $        48,973  $        660,379  $        174,128  $        80,444  $        69,453  $        324,025 


    (a)Interest expense, net, consists of interest expense less interest income.
    (b)Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
    (c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
    (d)Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.
    (e)This represents a loss recognized on the settlement of pension plan obligations related to an ongoing plan termination of our two U.S. defined benefit plans. We expect the termination to be substantially complete by the end of the year.
    (f)This primarily represents broiler losses incurred as a result of Hurricane Helene in late September 2024.
      


    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted EBITDA
    (Unaudited)
                    
     Nine Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023
     U.S. Europe Mexico Total U.S. Europe Mexico Total
     (In thousands) (In thousands)
    Net income (loss)$        579,948  $        102,232  $        169,271  $        851,451  $        (43,801) $        68,485  $        163,422  $        188,106 
    Add:               
    Interest expense, net(a)         100,266           (8,734)          (25,799)          65,733           127,234           (1,470)          (13,648)          112,116 
    Income tax expense (benefit)         215,655           9,383           59,283           284,321           (9,895)          4,743           25,640           20,488 
    Depreciation and amortization         200,006           104,852           16,910           321,768           187,048           103,483           16,883           307,414 
    EBITDA         1,095,875           207,733           219,665           1,523,273           260,586           175,241           192,297           628,124 
    Add:               
    Foreign currency transaction losses (gains)(b)         —           (53)          (7,187)          (7,240)          55,027           835           (12,400)          43,462 
    Litigation settlements(c)         72,190           —           —           72,190           34,700           —           —           34,700 
    Restructuring activities losses(d)         —           82,070           —           82,070           —           38,684           —           38,684 
    Loss on settlement of pension from plan termination(e)         10,709           —           —           10,709           —           —           —           — 
    Inventory write-down as a result of hurricane(f)         8,075           —           —           8,075           —           —           —           — 
    Minus:               
    Property insurance recoveries(g)         —           —           —           —           19,086           —           —           19,086 
    Net income attributable to noncontrolling interest         —           —           867           867           —           —           1,185           1,185 
    Adjusted EBITDA$        1,186,849  $        289,750  $        211,611  $        1,688,210  $        331,227  $        214,760  $        178,712  $        724,699 


    (a)Interest expense, net, consists of interest expense less interest income.
    (b)Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
    (c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
    (d)Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.
    (e)This represents a loss recognized on the settlement of pension plan obligations related to an ongoing plan termination of our two U.S. defined benefit plans. We expect the termination to be substantially complete by the end of the year.
    (f)This primarily represents broiler losses incurred as a result of Hurricane Helene in late September 2024.
    (g)This represents property insurance recoveries primarily for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.
      

    Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted Operating Income
    (Unaudited)
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In thousands)
    GAAP operating income, U.S. operations$        419,844   $        101,382   $        907,249   $        110,541  
    Litigation settlements         —            10,500            72,190            34,700  
    Inventory write-down as a result of hurricane         8,075            —            8,075            —  
    Adjusted operating income, U.S. operations$        427,919   $        111,882   $        987,514   $        145,241  
            
    Adjusted operating income margin, U.S. operations         15.4 %          4.5 %          12.3 %          2.0 %
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In thousands)
    GAAP operating income, Europe operations$        45,601   $        42,809   $        100,710   $        70,583  
    Restructuring activities losses         30,836            940            82,070            38,684  
    Adjusted operating income, Europe operations$        76,437   $        43,749   $        182,780   $        109,267  
            
    Adjusted operating income margin, Europe operations         5.8 %          3.3 %          4.7 %          2.8 %
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In thousands)
    GAAP operating income, Mexico operations$        42,909   $        62,182   $        191,459   $        157,076  
    No adjustments         —            —            —            —  
    Adjusted operating income, Mexico operations$        42,909   $        62,182   $        191,459   $        157,076  
            
    Adjusted operating income margin, Mexico operations         8.5 %          11.1 %          11.9 %          9.8 %


    Adjusted Operating Income Margin for each of our reportable segments is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income margin for each of our reportable segments to adjusted operating income margin for each of our reportable segments is as follows:

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin
    (Unaudited)
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In percent)
    GAAP operating income margin, U.S. operations        15.1 %         4.1 %         11.3 %         1.5 %
    Litigation settlements        — %         0.4 %         0.9 %         0.5 %
    Inventory write-down as a result of hurricane        0.3 %         — %         0.1 %         — %
    Adjusted operating income margin, U.S. operations        15.4 %         4.5 %         12.3 %         2.0 %
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In percent)
    GAAP operating income margin, Europe operations        3.5 %         3.3 %         2.6 %         1.8 %
    Restructuring activities losses        2.3 %         — %         2.1 %         1.0 %
    Adjusted operating income margin, Europe operations        5.8 %         3.3 %         4.7 %         2.8 %
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In percent)
    GAAP operating income margin, Mexico operations        8.5 %         11.1 %         11.9 %         9.8 %
    No adjustments        — %         — %         — %         — %
    Adjusted operating income margin, Mexico operations        8.5 %         11.1 %         11.9 %         9.8 %


    Adjusted net income attributable to Pilgrim's Pride Corporation (“Pilgrim's”) is calculated by adding to Net income attributable to Pilgrim's certain items of expense and deducting from Net income attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’s Pride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performance under U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP. Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income (loss) attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted Net Income
    (Unaudited)
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In thousands, except per share data)
    Net income attributable to Pilgrim's$        349,860  $        121,278  $        850,584  $        186,921 
    Add:       
    Foreign currency transaction losses (gains)         (678)          8,924           (7,240)          43,462 
    Litigation settlements         —           10,500           72,190           34,700 
    Restructuring activities losses         30,836           940           82,070           38,684 
    Loss on settlement of pension from plan termination         10,709           —           10,709           — 
    Inventory write-down as a result of hurricane         8,075           —           8,075           — 
    Minus:       
    Gain on early extinguishment of debt         (52)          —           11,159           — 
    Property insurance recoveries         —           —           —           19,086 
    Adjusted net income attributable to Pilgrim's before tax impact of adjustments         398,854           141,642           1,005,229           284,681 
    Net tax impact of adjustments(a)         (11,857)          (4,927)          (37,423)          (23,657)
    Adjusted net income attributable to Pilgrim's$        386,997  $        136,715  $        967,806  $        261,024 
    Weighted average diluted shares of common stock outstanding         237,891           237,347           237,686           237,244 
    Adjusted net income attributable to Pilgrim's per common diluted share$        1.63  $        0.58  $        4.07  $        1.10 


    (a)Net tax expense (benefit) of adjustments represents the tax impact of all adjustments shown above.
      

    Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of GAAP EPS to Adjusted EPS
    (Unaudited)
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In thousands, except per share data)
    GAAP EPS$        1.47  $        0.51  $        3.58  $        0.79 
    Add:       
    Foreign currency transaction losses (gains)         —           0.04           (0.03)          0.18 
    Litigation settlements         —           0.04           0.30           0.15 
    Restructuring activities losses         0.13           —           0.35           0.16 
    Loss on settlement of pension from plan termination         0.05           —           0.05           — 
    Inventory write-down as a result of hurricane         0.03           —           0.03           — 
    Minus:       
    Gain on early extinguishment of debt         —           —           0.05           — 
    Property insurance recoveries         —           —           —           0.08 
    Adjusted EPS before tax impact of adjustments         1.68           0.59           4.23           1.20 
    Net tax impact of adjustments(a)         (0.05)          (0.01)          (0.16)          (0.10)
    Adjusted EPS$        1.63  $        0.58  $        4.07  $        1.10 
            
    Weighted average diluted shares of common stock outstanding         237,891           237,347           237,686           237,244 


    (a)Net tax impact of adjustments represents the tax impact of all adjustments shown above.
      


    PILGRIM'S PRIDE CORPORATION
    Supplementary Selected Segment and Geographic Data
    (Unaudited)
            
     Three Months Ended Nine Months Ended
     September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
     (In thousands)
    Sources of net sales by geographic region of origin:       
    U.S.$        2,773,391  $        2,488,317  $        8,016,688  $        7,367,093 
    Europe         1,308,127           1,312,205           3,877,571           3,862,219 
    Mexico         503,461           559,674           1,611,968           1,604,603 
    Total net sales$        4,584,979  $        4,360,196  $        13,506,227  $        12,833,915 
            
    Sources of cost of sales by geographic region of origin:       
    U.S.$        2,280,425  $        2,317,661  $        6,834,091  $        7,044,003 
    Europe         1,176,286           1,216,258           3,539,695           3,595,051 
    Mexico         444,298           480,395           1,372,936           1,397,294 
    Elimination         —           —           —           213 
    Total cost of sales$        3,901,009  $        4,014,314  $        11,746,722  $        12,036,561 
            
    Sources of gross profit by geographic region of origin:       
    U.S.$        492,966  $        170,656  $        1,182,597  $        323,090 
    Europe         131,841           95,947           337,876           267,168 
    Mexico         59,163           79,279           239,032           207,309 
    Elimination         —           —           —           (213)
    Total gross profit$        683,970  $        345,882  $        1,759,505  $        797,354 
            
    Sources of operating income by geographic region of origin:       
    U.S.$        419,844  $        101,382  $        907,249  $        110,541 
    Europe         45,601           42,809           100,710           70,583 
    Mexico         42,909           62,182           191,459           157,076 
    Elimination         —           —           —           (213)
    Total operating income$        508,354  $        206,373  $        1,199,418  $        337,987 

    Primary Logo

シェアする