Why Poultry Producer Pilgrim's Pride Shares Are Surging Today

Pilgrims Pride Corp PPC reported fourth-quarter fiscal 2023 sales growth of 9.7% year-over-year to $4.528 billion, beating the consensus of $4.47 billion.

Adjusted EBITDA for the quarter increased to $309.5 million from $62.9 million a year ago. Margin expanded 530 bps to 6.8%.

Adjusted EPS was $0.59, an improvement from $(0.49), above the consensus of $0.40.

The company’s operating income recovered to $184.3 million from an operating loss of $(77.5) million a year ago, and the margin was 4.1%.

“While we’ve improved profitability throughout the year, we recognize that speed to market with our diversified portfolio will be critical to meet our growth aspirations, especially with Key Customers. We implemented a more nimble organizational structure that promotes ownership and discipline throughout our diversified portfolio,” commented Fabio Sandri, Pilgrim’s CEO.

U.S. sales of $2.66 billion (+9.5% Y/Y), momentum from promotional activities, new distribution with Key Customers in Case Ready and Small Bird, branded growth in Retail and Food Service, and operational excellence in Big Bird continued. 

Europe sales $1.34 billion (+8.6% Y/Y), in the U.K. and Europe, sales and adjusted EBITDA rose from branded offerings growth, network optimization, and enhanced Key Customer relations. 

Mexico sales of $526.55 million (+13.9% Y/Y) saw branded growth, increased Key Customer presence, and achieved breakeven results despite market challenges.

Pilgrims Pride’s cash provided by operating activities for the fiscal totaled $677.88 million versus $669.86 million in 2022.

The company held cash and cash equivalents of $731.22 million as of December 31, 2023.

PPC mentioned that the progress of their investments aimed at supporting Key Customer growth, driving operational excellence, and diversifying their portfolio is on track, with the initiation of production at the expanded Athens, GA facility and the planned start-up of a new protein conversion plant by the end of the first quarter of 2024.

Price Action: PPC shares are trading higher by 6.17% at $30.65 on the last check Monday.

Photo by Adam Fagen via Flickr