February 26, 2014

Pilgrim's Pride reports rise in 2013 net income to US$549.6 million

Pilgrim's Pride Corporation reports fourth quarter 2013 financial results with net sales of US$2.05 billion for the 13-week period, as compared to US$2.2 billion for the 14-week period in 2012.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$196.5 million increased 205% compared to the US$64.4 million generated in the prior year. Net income of US$143.4 million reflected an improvement of 529% compared to the US$22.8 million reported in the same period in 2012, with diluted earnings per share reaching US$0.55 compared to US$0.09 in the fourth quarter of 2012.

For the full 2013 fiscal year, Pilgrim's achieved US$8.4 billion in net sales and US$800.4 million of EBITDA, resulting in an EBITDA margin of 9.5%. Pilgrim's recognised US$549.6 million in net income for the full year with net income of US$2.12 per weighted average share, demonstrating consistently solid performance over the entire year.

"Three years ago our company began executing a strategy to create shareholder value and improve capital structure by partnering with key customers, relentless pursuit of operational excellence and growing our value added exports. During this period, we grew our sales by 22% while increasing our profitability, clearly demonstrating that this strategy is working as evidenced by this year's strong free cash flow generation" stated Bill Lovette, Pilgrim's Chief Executive Officer.

Cash flows from operations for its fourth quarter were US$281.8 million reaching US$878.5 million for the year, adding strength to their balance sheet and providing Pilgrim's with a competitive start to 2014. Their ending net debt position was US$307.1 million, which is 0.4 times our trailing 12 months' EBITDA of US$800.4 million. This robust capital structure will provide the company with the financial strength essential to pursuing the next stages of their growth strategy.

Pilgrim's Pride Corporation employs approximately 36,700 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors.