Pilgrim Pride : Q1 2025 Pilgrim's Pride Earnings Presentation

Published: 2025-05-01 07:10:05 ET PPC

Published on 05/01/2025 at 07:10

Pilgrim's Pride Corporation

(NASDAQ: PPC)

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

Actual results could differ materially from those projected in these forward-looking statements as a result of these factors, among others, many of which are beyond our control. In making these statements, we are not undertaking, and specifically decline to undertake, any obligation to address or update each or any factor in future filings or communications regarding our business or results, and we are not undertaking to address how any of these factors may have caused changes to information contained in previous filings or communications. Although we have attempted to list comprehensively these important cautionary risk factors, we must caution investors and others that other factors may in the future prove to be important and affecting our business or results of operations

This presentation may include information that may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100, including EBITDA, Adjusted EBITDA, LTM EBITDA, Net Debt, Free Cash Flow, Adjusted EBITDA Margin and others. Accordingly, we have provided tables in the accompanying appendix and in our previous filings with the SEC that reconcile these measures to their corresponding GAAP-based measures and explain why these measures are useful to investors, which can be obtained from the Consolidated Statements of Income provided with our previous filings with the SEC. Our method of computation may or may not be

comparable to other similarly titled measures used in filings with the SEC by other companies. See the consolidated statements of income

and consolidated statements of cash flows included in our financial statements. 2

Earnings Per Share

(EPS)

Adjusted EBITDA

1.24 0.73

U.S.: Year-over-year (YoY) increase in commodity market pricing, moderate input costs and increased volumes positively impacted Big Bird business; along with growth with Key Customers in Case Ready driving operating income improvement for the US business; Europe: Significant year-over-year profit improvement due to operational efficiencies and cost reductions; Mexico: profitability declined primarily due to Foreign Currency impacts.

Main Indicators ($MM)

Q1 2025

Q1 2024

Net Revenue

4,463.0

4,361.9

Gross Profit

554.9

383.9

SG&A

133.8

119.1

Operating Income

404.5

250.3

Net Interest

16.8

30.9

Net Income

296.3

174.9

SG&A higher primarily due to legal settlement and defense costs, and higher incentive compensation costs.

Net interest lower due to increased interest income on higher cash balance during Q1 2025.

Adjusted EBITDA* 533.2 371.8

Q1 2025 Adjusted EBITDA* YoY increase driven by higher US commodity market pricing, along with lower input costs; growth with our Key Customers and operating efficiencies generated

Margin* 12.0% 8.5%

* This is a non-GAAP measurement considered by management to be useful in understanding our results. Please see the appendix and most recent SEC financial filings for definition of this measurement and reconciliation to US GAAP.

Source: PPC

in all regions.

In $MM

U.S.

EU

MX

Net Revenue

2,743.2

1,231.5

488.3

Adjusted Operating Income*

326.1

65.7

36.6

Adjusted Operating Income Margin*

11.9%

5.3%

7.5%

3

12,000

10,000

8,000

Thousand Head

6,000

4,000

2,000

-

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

4

Source: USDA

Broiler Type Hatching Layers

66,000

64,000

62,000

Head (000)

60,000

58,000

56,000

54,000

52,000

50,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 2024 2025 5 Yr. Avg.

2,000

1,950

1,900

1,850

Eggs

1,800

1,750

1,700

1,650

1,600

1,550

1,500

Eggs/100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 2024 2025 5 Yr. Avg.

Broiler layer flock -2.3% YoY in Q1-25.

Eggs/100 0.0% YoY in Q1-25.

5

Source: USDA

Disclaimer

Pilgrim's Pride Corporation published this content on May 01, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2025 at 11:09 UTC.