Pilgrim's Pride Reports Fourth Quarter and Year-End 2024 Results

GREELEY, Colo., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's leading food companies, reports its fourth quarter and year-end 2024 financial results. 2024 Highlights Net Sales of $17.9 billion.Consolidated GAAP Operating Income margin of 8.4%.GAAP Net Income of $1.1 billion and GAAP EPS of $4.57. Adjusted Net Income of $1.3 billion, or Adjusted EPS of $5.42.Adjusted EBITDA of $2.2 billion, or a 12.4% margin, with Adjusted EBITDA margins of 14.7% in the U.S., 7.9% in Europe, and 11.8% in Mexico.The U.S. Fresh portfolio continued to benefit from strong chicken demand and execution of the company’s strategies. Pilgrim’s continued to progress in operational excellence, while its diversified portfolio across bird sizes and differentiated offerings captured benefits from above average commodity values and generated incremental distribution with key customers.U.S. Prepared Foods continued to provide profitable growth as branded offerings grew nearly 25% compared to last year. Just Bare® and Pilgrim’s® remain key drivers, with innovative and well-recognized quality capturing market share. Progress in commerce also continues, as digitally influenced sales grew 30% compared to prior year.Pilgrim’s Europe business continues its positive momentum, with manufacturing footprint optimization, back-office integration of support activities, and enhanced mix. Richmond® and Fridge Raiders® continue to increase volume share in their categories, and innovation efforts in partnership with key customers continue to be recognized by the market with multiple industry awards.Mexico margins improved from last year given extended strength in the commodity markets and increased distribution with key customers across retail and foodservice. Diversification through brands remained on track as the portfolio grew over 7%. Pilgrim’s sustainability efforts continue to drive reductions in scope 1 and 2 emissions intensity across all regions compared to 2023. External agencies continued to recognize progress in environmental performance as scores improved compared to last year.Strong liquidity position and net leverage ratio of 0.52 Adjusted EBITDA given healthy market conditions, judicious working capital management, and consistent execution of the company’s strategies provided the foundation to drive profitable growth for the business. Fourth Quarter Net Sales of $4.4 billion.Consolidated GAAP Operating Income margin of 7.0%.GAAP Net Income of $235.9 million and GAAP EPS of $0.99. Adjusted Net Income of $321.7 million and Adjusted EPS of $1.35.Adjusted EBITDA of $525.7 million, or a 12.0% margin, with Adjusted EBITDA margins of 14.2% in the U.S., 9.3% in Europe, and 7.4% in Mexico.Pilgrim’s U.S. portfolio benefited from relatively strong seasonal commodity cut out values for Big Bird, increased demand from key customers in Case Ready and Small Bird, and continued progress in mix and cost through operational excellence efforts.U.S. Prepared Foods accelerated growth through incremental distribution of its portfolio across retail and foodservice. Diversification through brands continues to progress as net sales of Just Bare® and Pilgrim’s® grew 35% and 16%, respectively, compared to prior year.Europe increased margins through continued operational excellence in manufacturing, and growth in foodservice and branded offerings. Fridge Raiders® and Rollover® both grew faster than category averages.Mexico realized strong performance as commodity values strengthened throughout the quarter, fresh branded products grew nearly 10%, and key customer demand experienced positive growth. The Merida complex ramped up production during the quarter, and the company continues to invest in additional capacity in the region.Pilgrim’s continues to cultivate its sustainability infrastructure as the company partnered with GreenGasUSA to complete a project to leverage methane capture capabilities at its Sumter, S.C., complex and generate renewable natural gas. Unaudited Three Months Ended Year Ended December 29, 2024 December 31, 2023(2) Y/Y Change December 29, 2024 December 31, 2023(2) Y/Y Change (In millions, except per share and percentages) Net sales $4,372.1 $4,528.3 (3.5)% $17,878.3 $17,362.2 +3.0%U.S. GAAP EPS $0.99 $0.57 +73.7 % $4.57 $1.36 +236.0%Operating income $306.7 $184.3 +66.4 % $1,506.1 $522.3 +188.4%Adjusted EBITDA(1) $525.7 $309.5 +69.9 % $2,213.9 $1,034.2 +114.1%Adjusted EBITDA margin(1) 12.0% 6.8% +5.2pts 12.4% 6.0% +6.4pts (1) Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.(2) The three months ended and year ended December 31, 2023 were 14-week and 53-week periods, respectively. “While we experienced a positive market environment with lower input costs and strong chicken demand in 2024, we elevated our performance across all regions through a continued focus on controlling what we can control,” said Fabio Sandri, Pilgrim’s President and CEO. “As such, we improved efficiencies through operational excellence, expanded relationships with key customers, and drove growth in our value-added portfolio.” In the fourth quarter, the U.S. continued to execute its strategies, and demand for chicken remained robust across both retail and foodservice. Big Bird benefited from production improvements and relatively strong seasonal market pricing, whereas Case Ready and Small Bird grew from increased consumer demand in retail, QSR and deli. Prepared Foods continued to cultivate sales momentum through additional distribution of its value-added portfolio. “Our performance is a reflection of our diversified portfolio, our ability to work with key customers to unlock consumer value through differentiated offerings, and our continued emphasis on quality and service,” Sandri said. Europe improved by over 100 basis points compared to same period last year through continued improvements in product mix and manufacturing productivity. These efforts were amplified by further diversification through brands and increased consumer acceptance of recently launched innovation. “Europe continued to make strong progress in its profitability journey. Equally important, the team continues to cultivate the foundation for profitable growth through innovation. In partnership with our key customers, we launched new and innovative products that are growing ahead of the categories and helping our key customers to differentiate in the marketplace,” said Sandri. In Mexico, commodity markets experienced counter seasonal movements and continually strengthened throughout the quarter. Key customers in fresh continued to play a critical role as sales grew nearly 10% compared to the prior year. Diversification through value added gain momentum through incremental distribution across retail, club and foodservice. “Given Mexico’s performance and market potential, we are continuing to invest in capacity expansion and operational excellence to further cultivate profitable growth with key customers. Based on these efforts, we can simultaneously reduce our operational risk, further diversify our portfolio, and unlock value with our key customers,” said Sandri. Progress in sustainability continues as all regions reduced their energy intensity compared to the prior year. External agencies once again recognized progress in environmental practices as scores improved versus 2023. Innovation continues to be a key driver as Pilgrim’s partnership with GreenGasUSA to transform methane into renewable natural gas recently initiated production. “We continue to integrate sustainability throughout all aspects of our business. As part of these efforts, we will explore novel solutions with leading industry partners to champion emissions reduction throughout our business,” remarked Sandri. Conference Call Information A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, Feb. 13, 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/10196108/fe534cf744 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 over 61,000 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 of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. PILGRIM’S PRIDE CORPORATIONCONSOLIDATED BALANCE SHEETS December 29, 2024 December 31, 2023 (In thousands, except share and par value data)Cash and cash equivalents $2,040,834 $697,748 Restricted cash and cash equivalents 2,324 33,475 Investment in available-for-sale securities 10,220 — Trade accounts and other receivables, less allowance for credit losses 1,004,334 1,129,178 Accounts receivable from related parties 2,608 1,778 Inventories 1,783,488 1,985,399 Income taxes receivable 72,414 161,062 Prepaid expenses and other current assets 200,879 195,831 Assets held for sale 3,062 — Total current assets 5,120,163 4,204,471 Deferred tax assets 29,483 4,890 Other long-lived assets 62,019 35,646 Operating lease assets, net 255,713 266,707 Intangible assets, net 806,234 853,983 Goodwill 1,239,073 1,286,261 Property, plant and equipment, net 3,137,891 3,158,403 Total assets $10,650,576 $9,810,361 Accounts payable $1,411,519 $1,410,576 Accounts payable to related parties 15,257 41,254 Revenue contract liabilities 48,898 84,958 Accrued expenses and other current liabilities 1,015,504 926,727 Income taxes payable 60,097 31,678 Current maturities of long-term debt 858 674 Total current liabilities 2,552,133 2,495,867 Noncurrent operating lease liabilities, less current maturities 195,944 203,348 Long-term debt, less current maturities 3,206,113 3,340,841 Deferred tax liabilities 422,952 385,548 Other long-term liabilities 20,038 40,180 Total liabilities 6,397,180 6,465,784 Common stock, $.01 par value, 800,000,000 shares authorized; 262,263,358 and 261,931,080 shares issued at year-end 2024 and year-end 2023, respectively; 237,122,205 and 236,789,927 shares outstanding at year-end 2024 and year-end 2023, respectively 2,623 2,620 Treasury stock, at cost, 25,141,153 shares at year-end 2024 and year-end 2023. (544,687) (544,687)Additional paid-in capital 1,994,259 1,978,849 Retained earnings 3,157,511 2,071,073 Accumulated other comprehensive loss (370,300) (176,483)Total Pilgrim’s Pride Corporation stockholders’ equity 4,239,406 3,331,372 Noncontrolling interest 13,990 13,205 Total stockholders’ equity 4,253,396 3,344,577 Total liabilities and stockholders' equity $10,650,576 $9,810,361 PILGRIM’S PRIDE CORPORATIONCONSOLIDATED STATEMENTS OF INCOME Three Months Ended Year Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 (In thousands, except per share data)Net sales $4,372,064 $4,528,302 $17,878,291 $17,362,217 Cost of sales 3,818,802 4,207,255 15,565,524 16,243,816 Gross profit 553,262 321,047 2,312,767 1,118,401 Selling, general and administrative expense 235,293 131,087 713,310 551,770 Restructuring activities 11,318 5,661 93,388 44,345 Operating income 306,651 184,299 1,506,069 522,286 Interest expense, net of capitalized interest 47,134 66,813 161,175 202,272 Interest income (24,358) (12,308) (72,666) (35,651)Foreign currency transaction losses (gains) (2,785) (22,892) (10,025) 20,570 Miscellaneous, net 10,163 (3,942) 15,316 (30,127)Income before income taxes 276,497 156,628 1,412,269 365,222 Income tax expense 40,725 22,417 325,046 42,905 Net income 235,772 134,211 1,087,223 322,317 Less: Net income (loss) attributable to noncontrollinginterests (82) (442) 785 743 Net income attributable to Pilgrim’s PrideCorporation $235,854 $134,653 $1,086,438 $321,574 Weighted average shares of common stock outstanding: Basic 237,123 236,790 237,008 236,725 Effect of dilutive common stock equivalents 947 675 792 572 Diluted 238,070 237,465 237,800 237,297 Net income (loss) attributable to Pilgrim's PrideCorporation per share of common stockoutstanding: Basic $0.99 $0.57 $4.58 $1.36 Diluted $0.99 $0.57 $4.57 $1.36 PILGRIM’S PRIDE CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 29, 2024 December 31, 2023 (In thousands)Cash flows from operating activities: Net income $1,087,223 $322,317 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 433,622 419,900 Asset impairment 28,575 4,010 Share-based compensation 14,873 7,226 Loss (gain) on early extinguishment of debt recognized as a component of interest expense (11,211) 20,694 Loan cost amortization 5,033 7,366 Deferred income tax expense 4,830 6,675 Accretion of bond discount 2,506 2,278 Loss (gain) on property disposals 1,779 (6,052)Loss (gain) on equity method investments (7) 328 Changes in operating assets and liabilities: Trade accounts and other receivables 88,340 (19,007)Inventories 134,521 12,602 Prepaid expenses and other current assets (33,303) 17,776 Accounts payable and accrued expenses 126,672 (68,677)Income taxes 109,369 (8,878)Long-term pension and other postretirement obligations 26,052 (9,993)Other operating assets and liabilities (28,747) (30,688)Cash provided by operating activities 1,990,127 677,877 Cash flows from investing activities: Acquisitions of property, plant and equipment (476,153) (543,816)Proceeds from property disposals 15,356 19,784 Proceeds from insurance recoveries — 20,681 Cash used in investing activities (460,797) (503,351)Cash flows from financing activities: Payments on revolving line of credit, long-term borrowings, and finance lease obligations (152,120) (1,616,321)Proceeds from revolving line of credit and long-term borrowings — 1,768,236 Proceeds from contribution (payment of distribution) of capital under Tax Sharing Agreement between JBSUSA Holdings and Pilgrim’s Pride Corporation 1,425 (1,592)Payment on early extinguishment of debt (200) (13,780)Payment of capitalized loan costs (16) (19,816)Cash provided by (used in) financing activities (150,911) 116,727 Effect of exchange rate changes on cash and cash equivalents (66,484) 5,211 Increase in cash and cash equivalents 1,311,935 296,464 Cash and cash equivalents, beginning of year 731,223 434,759 Cash and cash equivalents, end of year $2,043,158 $731,223 Supplemental Disclosure Information: Interest paid (net of amount capitalized) $182,040 $131,205 Income taxes paid 197,557 19,749 PILGRIM’S PRIDE CORPORATION Selected Financial Information (Unaudited) “EBITDA” is defined as the sum of net income (loss) 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 from plan termination, (5) inventory write-down as a result of hurricane, and (6) net income attributable to noncontrolling interest. 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 CORPORATIONReconciliation of Adjusted EBITDA(Unaudited) Three Months Ended Year Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 (In thousands)Net income $235,772 $134,211 $1,087,223 $322,317Add: Interest expense, net(a) 22,776 54,505 88,509 166,621Income tax expense 40,725 22,417 325,046 42,905Depreciation and amortization 111,854 112,486 433,622 419,900EBITDA 411,127 323,619 1,934,400 951,743Add: Foreign currency transaction losses (gains)(b) (2,785) (22,892) (10,025) 20,570Litigation settlements(c) 95,038 4,700 167,228 39,400Restructuring activities losses(d) 11,318 5,661 93,388 44,345Loss on settlement of pension from plan termination(e) 10,940 — 21,649 —Inventory write-down as a result of hurricane(f) — — 8,075 —Minus: Property insurance recoveries(g) — 2,038 — 21,124Net income (loss) attributable to noncontrolling interest (82) (442) 785 743Adjusted EBITDA $525,720 $309,492 $2,213,930 $1,034,191 (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 a plan termination of our two U.S. defined benefit plans.(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 12 months ended December 29, 2024 (the LTM Period) have been calculated by summing each of the unaudited three month periods within the audited year ended December 29, 2024. PILGRIM'S PRIDE CORPORATIONReconciliation of LTM Adjusted EBITDA(Unaudited) Three Months Ended LTM Ended December 29, 2024 March 31, 2024 June 30, 2024 September 29, 2024 December 29, 2024 (In thousands) Net income $174,938 $326,523 $349,990 $235,772 $1,087,223 Add: Interest expense, net 30,897 15,338 19,498 22,776 88,509 Income tax expense 52,062 100,650 131,609 40,725 325,046 Depreciation and amortization 103,350 107,948 110,470 111,854 433,622 EBITDA 361,247 550,459 611,567 411,127 1,934,400 Add: Foreign currency transaction gains (4,337) (2,225) (678) (2,785) (10,025)Litigation settlements 940 71,250 — 95,038 167,228 Restructuring activities losses 14,559 36,675 30,836 11,318 93,388 Loss on settlement of pension from plan termination — — 10,709 10,940 21,649 Inventory write-down as a result of hurricane — — 8,075 — 8,075 Minus: Net income (loss) attributable tononcontrolling interest 517 220 130 (82) 785 Adjusted EBITDA $371,892 $655,939 $660,379 $525,720 $2,213,930 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 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 CORPORATIONReconciliation of EBITDA Margin(Unaudited) Three Months Ended Year Ended Three Months Ended Year Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 (In thousands, except percent of net sales)Net income $235,772 $134,211 $1,087,223 $322,317 5.39% 2.96% 6.08% 1.86%Add: Interest expense, net 22,776 54,505 88,509 166,621 0.52% 1.20% 0.50% 0.96%Income tax expense 40,725 22,417 325,046 42,905 0.93% 0.50% 1.82% 0.25%Depreciation and amortization 111,854 112,486 433,622 419,900 2.56% 2.48% 2.43% 2.42%EBITDA 411,127 323,619 1,934,400 951,743 9.40% 7.14% 10.82% 5.48%Add: Foreign currency transactionlosses (gains) (2,785) (22,892) (10,025) 20,570 (0.05)% (0.50)% (0.06)% 0.13%Litigation settlements 95,038 4,700 167,228 39,400 2.17% 0.10% 0.92% 0.21%Restructuring activities losses 11,318 5,661 93,388 44,345 0.26% 0.13% 0.52% 0.26%Loss on settlement of pension from plan termination 10,940 — 21,649 — 0.25% —% 0.12% —%Inventory write-down as a result of hurricane — — 8,075 — —% —% 0.05% —%Minus: Property insurance recoveries — 2,038 — 21,124 —% 0.05% —% 0.12%Net income (loss) attributable tononcontrolling interest (82) (442) 785 743 —% (0.01)% —% —%Adjusted EBITDA $525,720 $309,492 $2,213,930 $1,034,191 12.03% 6.83% 12.37% 5.96% Net sales $4,372,064 $4,528,302 $17,878,291 $17,362,217 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 CORPORATIONReconciliation of Adjusted EBITDA(Unaudited) Three Months Ended Three Months Ended December 29, 2024 December 31, 2023 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands)Net income$139,647 $74,189 $21,936 $235,772 $76,321 $46,181 $11,709 $134,211 Add: Interest expense, net(a) 33,518 (5,262) (5,480) 22,776 66,779 (1,458) (10,816) 54,505 Income tax expense (benefit) 21,895 1,367 17,463 40,725 4,047 18,635 (265) 22,417 Depreciation and amortization 70,612 36,141 5,101 111,854 68,004 38,707 5,775 112,486 EBITDA 265,672 106,435 39,020 411,127 215,151 102,065 6,403 323,619 Add: Foreign currency transaction losses (gains)(b) (1) (612) (2,172) (2,785) (19,594) (3,355) 57 (22,892)Litigation settlements(c) 95,038 — — 95,038 4,700 — — 4,700 Restructuring activities losses(d) — 11,318 — 11,318 — 5,661 — 5,661 Loss on settlement of pension from plan termination(e) 10,940 — — 10,940 — — — — Inventory write-down as a result of hurricane(f) — — — — — — — — Minus: Property insurance recoveries(g) — — — — — 1,921 117 2,038 Net income attributable to noncontrolling interest — — (82) (82) — — (442) (442)Adjusted EBITDA$371,649 $117,141 $36,930 $525,720 $200,257 $102,450 $6,785 $309,492 (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 a plan termination of our two U.S. defined benefit plans.(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. PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted EBITDA(Unaudited) Year Ended Year Ended December 29, 2024 December 31, 2023 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands)Net income$719,595 $176,421 $191,207 $1,087,223 $32,520 $114,666 $175,131 $322,317Add: Interest expense, net(a) 133,784 (13,996) (31,279) 88,509 194,013 (2,928) (24,464) 166,621Income tax expense (benefit) 237,550 10,750 76,746 325,046 (5,848) 23,378 25,375 42,905Depreciation and amortization 270,618 140,993 22,011 433,622 255,052 142,190 22,658 419,900EBITDA 1,361,547 314,168 258,685 1,934,400 475,737 277,306 198,700 951,743Add: Foreign currency transaction losses (gains)(b) (1) (665) (9,359) (10,025) 35,433 (2,520) (12,343) 20,570Litigation settlements(c) 167,228 — — 167,228 39,400 — — 39,400Restructuring activities losses(d) — 93,388 — 93,388 — 44,345 — 44,345Loss on settlement of pension from plan termination(e) 21,649 — — 21,649 — — — —Inventory write-down as a result of hurricane(f) 8,075 — — 8,075 — — — —Minus: Property insurance recoveries(g) — — — — 19,086 1,921 117 21,124Net income attributable to noncontrolling interest — — 785 785 — — 743 743Adjusted EBITDA$1,558,498 $406,891 $248,541 $2,213,930 $531,484 $317,210 $185,497 $1,034,191 (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 a plan termination of our two U.S. defined benefit plans.(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 CORPORATIONReconciliation of Adjusted Operating Income(Unaudited) Three Months Ended Year Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 (In thousands)GAAP operating income, U.S. operations$205,752 $128,353 $1,113,001 $238,894 Litigation settlements 95,038 4,700 167,228 39,400 Inventory write-down as a result of hurricane — — 8,075 — Adjusted operating income, U.S. operations$300,790 $133,053 $1,288,304 $278,294 Adjusted operating income margin, U.S. operations 11.5% 5.0% 12.1% 2.8% GAAP operating income, Europe operations$68,983 $57,568 $169,693 $128,151 Restructuring activities losses 11,318 5,661 93,388 44,345 Adjusted operating income, Europe operations$80,301 $63,229 $263,081 $172,496 Adjusted operating income margin, Europe operations 6.4% 4.7% 5.1% 3.3% GAAP operating income, Mexico operations$31,916 $(1,621) $223,375 $155,455 No adjustments — — — — Adjusted operating income, Mexico operations$31,916 $(1,621) $223,375 $155,455 Adjusted operating income margin, Mexico operations 6.4% (0.3)% 10.6% 7.3% 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 CORPORATIONReconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin(Unaudited) Three Months Ended Year Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 (In percent)GAAP operating income margin, U.S. operations7.9% 4.8% 10.5% 2.4%Litigation settlements3.6% 0.2% 1.5% 0.4%Inventory write-down as a result of hurricane—% —% 0.1% —%Adjusted operating income margin, U.S. operations11.5% 5.0% 12.1% 2.8% GAAP operating income margin, Europe operations5.5% 4.3% 3.3% 2.5%Restructuring activities losses0.9% 0.4% 1.8% 0.8%Adjusted operating income margin, Europe operations6.4% 4.7% 5.1% 3.3% GAAP operating income margin, Mexico operations6.4% (0.3)% 10.6% 7.3%No adjustments—% —% —% —%Adjusted operating income margin, Mexico operations6.4% (0.3)% 10.6% 7.3% 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 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 CORPORATIONReconciliation of Adjusted Net Income(Unaudited) Three Months Ended Year Ended December 29,2024 December 31,2023 December 29,2024 December 31,2023 (In thousands, except per share data)Net income attributable to Pilgrim's$235,854 $134,653 $1,086,438 $321,574 Add: Foreign currency transaction losses (gains) (2,785) (22,892) (10,025) 20,570 Litigation settlements 95,038 4,700 167,228 39,400 Restructuring activities losses 11,318 5,661 93,388 44,345 Loss on settlement of pension from plan termination 10,940 — 21,649 — Inventory write-down as a result of hurricane — — 8,075 — Loss (gain) on early extinguishment of debt recognizedas a component of interest expense(a) — 20,694 (11,211) 20,694 Minus: Property insurance recoveries — 2,038 — 21,124 Adjusted net income (loss) attributable to Pilgrim's before tax impact 350,365 140,778 1,355,542 425,459 Net tax impact of adjustments(b) (28,620) (1,482) (66,057) (25,140)Adjusted net income attributable to Pilgrim's$321,745 $139,296 $1,289,485 $400,319 Weighted average diluted shares of common stock outstanding 238,070 237,465 237,800 237,297 Adjusted net income attributable to Pilgrim's per common diluted share$1.35 $0.59 $5.42 $1.69 (a)The gain on early extinguishment of debt recognized as a component of interest expense in 2024 was due to the bond repurchases. The loss on early extinguishment of debt recognized as a component of interest expense in 2023 was due to the repurchase of the Senior Notes due 2027.(b)Net tax impact 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 CORPORATIONReconciliation of GAAP EPS to Adjusted EPS(Unaudited) Three Months Ended Year Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 (In thousands, except per share data)U.S. GAAP EPS$0.99 $0.57 $4.57 $1.36 Add: Foreign currency transaction losses (gains) (0.01) (0.10) (0.04) 0.09 Litigation settlements 0.40 0.02 0.70 0.16 Restructuring activities losses 0.05 0.02 0.39 0.19 Loss on settlement of pension from plan termination 0.05 — 0.09 — Inventory write-down as a result of hurricane — — 0.03 — Loss (gain) on early extinguishment of debt recognized as a component of interest expense — 0.09 (0.05) 0.08 Minus: Property insurance recoveries — 0.01 — 0.09 Adjusted EPS attributable to Pilgrim's before tax impact 1.48 0.59 5.69 1.79 Net tax impact of adjustments(a) (0.13) — (0.27) (0.10)Adjusted EPS$1.35 $0.59 $5.42 $1.69 Weighted average diluted shares of common stock outstanding 238,070 237,465 237,800 237,297 (a) Net tax impact of adjustments represents the tax impact of all adjustments shown above. PILGRIM'S PRIDE CORPORATIONSupplementary Geographic Data(Unaudited) Three Months Ended Year Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 (In thousands)Sources of net sales by country of origin: U.S. $2,613,241 $2,660,649 $10,629,929 $10,027,742 Europe 1,259,176 1,341,103 5,136,747 5,203,322 Mexico 499,647 526,550 2,111,615 2,131,153 Total net sales $4,372,064 $4,528,302 $17,878,291 $17,362,217 Sources of cost of sales by country of origin: U.S. $2,231,746 $2,461,255 $9,065,837 $9,505,258 Europe 1,135,385 1,233,572 4,675,080 4,828,623 Mexico 451,671 512,427 1,824,607 1,909,721 Elimination — 1 — 214 Total cost of sales $3,818,802 $4,207,255 $15,565,524 $16,243,816 Sources of gross profit by country of origin: U.S. $381,495 $199,394 $1,564,092 $522,484 Europe 123,791 107,531 461,667 374,699 Mexico 47,976 14,123 287,008 221,432 Elimination — (1) — (214)Total gross profit $553,262 $321,047 $2,312,767 $1,118,401 Sources of operating income (loss) by country of origin: U.S. $205,752 $128,353 $1,113,001 $238,894 Europe 68,983 57,568 169,693 128,151 Mexico 31,916 (1,621) 223,375 155,455 Elimination — (1) — (214)Total operating income $306,651 $184,299 $1,506,069 $522,286

Pilgrim's Pride Reports Fourth Quarter and Year-End 2024 Results

FAQ

Why Very Bullish?

How important is it?

Why Short Term?

Related Companies

Related News