Pilgrim’s Pride Reports Third Quarter 2024 Results with $4.6 Billion in Net Sales and Operating Income of $508.4 Million
Pilgrim's Pride reported strong Q3 2024 results with net sales of $4.6 billion, up 5.2% year-over-year. The company achieved a GAAP operating income of $508.4 million with an 11.1% margin. Notable highlights include GAAP Net Income of $350.0 million and EPS of $1.47. The U.S. Fresh portfolio showed improvement through operational excellence and strong demand, while Europe improved Adjusted EBITDA by nearly 40% versus prior year. The company maintained a strong liquidity position with a net leverage ratio of 0.65x Adjusted EBITDA. Branded prepared foods portfolio expanded across retail and foodservice, with branded sales in Mexico rising over 20%.
Pilgrim's Pride ha riportato risultati solidi per il terzo trimestre del 2024 con vendite nette di 4,6 miliardi di dollari, in aumento del 5,2% rispetto all'anno precedente. L'azienda ha raggiunto un utile operativo GAAP di 508,4 milioni di dollari con un margine dell'11,1%. Tra i risultati notevoli si segnalano un utile netto GAAP di 350,0 milioni di dollari e un utile per azione (EPS) di 1,47 dollari. Il portafoglio di prodotti freschi negli Stati Uniti ha mostrato miglioramenti grazie all'eccellenza operativa e a una forte domanda, mentre in Europa l'EBITDA rettificato è aumentato di quasi il 40% rispetto all'anno precedente. L'azienda ha mantenuto una solida posizione di liquidità con un rapporto di indebitamento netto di 0,65 volte l'EBITDA rettificato. Il portafoglio di alimenti pronti di marca si è espanso nel retail e nel settore della ristorazione, con vendite di marca in Messico in aumento di oltre il 20%.
Pilgrim's Pride reportó resultados sólidos para el tercer trimestre de 2024 con ventas netas de 4.6 mil millones de dólares, un aumento del 5.2% en comparación con el año anterior. La compañía logró un ingreso operativo GAAP de 508.4 millones de dólares con un margen del 11.1%. Algunos de los aspectos destacados incluyen un ingreso neto GAAP de 350.0 millones de dólares y un EPS de 1.47 dólares. El portafolio de productos frescos en EE.UU. mostró mejoras gracias a la excelencia operacional y a una fuerte demanda, mientras que Europa mejoró el EBITDA ajustado casi un 40% en comparación con el año anterior. La empresa mantuvo una sólida posición de liquidez con una relación de apalancamiento neto de 0.65 veces el EBITDA ajustado. El portafolio de alimentos preparados de marca se expandió en el comercio minorista y en el servicio de alimentos, con ventas de marca en México aumentando más del 20%.
필그림스 프라이드는 2024년 3분기 실적을 발표했으며 매출 46억 달러로 지난해 대비 5.2% 증가했습니다. 회사는 GAAP 운영 수익 5억 840만 달러를 기록하며 11.1%의 마진을 달성했습니다. 주목할 만한 하이라이트로는 GAAP 순이익 3억 5천만 달러와 주당 순이익(EPS) 1.47달러가 있습니다. 미국의 신선식품 포트폴리오는 운영 우수성과 강한 수요 덕분에 개선을 보였으며, 유럽은 전년 대비 조정된 EBITDA를 거의 40% 증가시켰습니다. 회사는 조정된 EBITDA 대비 0.65배의 순부채 비율로 강력한 유동성 위치를 유지했습니다. 브랜드 준비식품 포트폴리오는 소매와 음식 서비스 전반에 걸쳐 확장되었으며, 멕시코에서의 브랜드 판매는 20% 이상 증가했습니다.
Pilgrim's Pride a annoncé des résultats solides pour le troisième trimestre 2024, avec des ventes nettes de 4,6 milliards de dollars, en hausse de 5,2% par rapport à l'année précédente. L'entreprise a réalisé un résultat opérationnel GAAP de 508,4 millions de dollars avec une marge de 11,1%. Parmi les points forts, on note un résultat net GAAP de 350,0 millions de dollars et un BPA de 1,47 dollar. Le portefeuille de produits frais aux États-Unis a montré des améliorations grâce à l'excellence opérationnelle et à une forte demande, tandis qu'en Europe, l'EBITDA ajusté s'est amélioré de près de 40% par rapport à l'année précédente. L'entreprise a maintenu une solide position de liquidité avec un ratio d'endettement net de 0,65 fois l'EBITDA ajusté. Le portefeuille d'aliments préparés de marque s'est élargi dans le commerce de détail et le secteur de la restauration, les ventes de marque au Mexique ayant augmenté de plus de 20%.
Pilgrim's Pride hat starke Ergebnisse für das dritte Quartal 2024 gemeldet, mit Nettoverkaufszahlen von 4,6 Milliarden Dollar, was einem Anstieg von 5,2% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein GAAP-Betriebsergebnis von 508,4 Millionen Dollar mit einer Marge von 11,1%. Zu den bemerkenswerten Höhepunkten gehören ein GAAP-Nettoeinkommen von 350,0 Millionen Dollar und ein EPS von 1,47 Dollar. Das US-Frischportfolio zeigte Verbesserungen durch betriebliche Exzellenz und starke Nachfrage, während Europa das bereinigte EBITDA im Vergleich zum Vorjahr um fast 40% verbessern konnte. Das Unternehmen hielt sich eine starke Liquiditätsposition mit einem Netto-Leverage-Verhältnis von 0,65x bereinigtem EBITDA. Das Portfolio an markenfertigen Lebensmitteln expandierte im Einzelhandel und im Lebensmitteldienst, wobei die Markenverkäufe in Mexiko um über 20% stiegen.
- Net sales increased 5.2% YoY to $4.6 billion
- GAAP operating income grew 146.3% to $508.4 million
- Adjusted EBITDA margin improved by 7.0 points to 14.4%
- GAAP EPS increased 188.2% to $1.47
- Europe achieved highest quarterly adjusted EBITDA to date
- Mexico branded sales grew over 20%
- None.
Insights
Strong quarterly performance with significant year-over-year improvements across key metrics. Net sales increased by
Notable financial strengths include:
- Healthy leverage ratio of 0.65x Adjusted EBITDA
- Strong cash generation
- Significant margin expansion across segments
Market dynamics strongly favor Pilgrim's Pride's current positioning. The company is capitalizing on chicken's relative affordability compared to other proteins, driving increased demand across retail and food service channels. Strategic highlights include:
- Outperformance in Case Ready and Small Bird segments
- Successful expansion of branded prepared foods
- Strong growth in Mexico's branded sales (over
20% ) - Launch of 280+ new products in Europe
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 a14.4% 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 by17% . 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 | |||||||
FAQ
What was Pilgrim's Pride (PPC) revenue in Q3 2024?
What was PPC's earnings per share (EPS) in Q3 2024?
How much did Pilgrim's Pride's operating income grow in Q3 2024?
What was PPC's Adjusted EBITDA margin in Q3 2024?
