October 31, 2013

Pilgrim's Pride posts higher net sales in Q3 2013

Pilgrim's Pride Corporation reports financial results with net sales of US$2.14 billion in the third quarter of 2013, US$74 million higher than the US$2.07 billion reported in the third quarter of 2012.

Pilgrim's earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$222.5 million increased 116% compared to the US$103 million generated in the prior year. Net income of US$160.9 million shows a rise of 275% compared to the US$42.9 million reported in the same period in 2012, with diluted earnings per share reaching US$0.62 compared to US$0.17 in the third quarter of 2012.

"We are pleased to see continued improvement reflected in our results based on the consistent execution of our strategy. Our engagement with key customers continues to reflect the value they expect from Pilgrim's and is driving growth and success for our customers. We've also seen improvements in our margins as a result of the processes we've transformed through our commitment to operational excellence. We are close to achieving our operational improvement targets for the year and envision capturing even greater efficiencies in 2014. Our export model has enabled us to attain our goal of achieving 30% growth in value-added products year to date," stated Bill Lovette, Pilgrim's Chief Executive Officer.

"While we saw some volatility in the Mexican market this quarter, we believe the fundamentals of the business and growth opportunities remain intact. Market prices in the region softened during the quarter; however, we continue to view Mexico as a tremendous opportunity for profitability and growth."

Lovette added that cash flows from operations were US$285.8 million for the quarter, enabling them to reduce their debt by US$252 million. Ending net debt position was US$582.1 million, which is 0.87 times their trailing 12 months' EBITDA. This stronger capital structure is reflective of their effective operational execution and cash management strategy.

Pilgrim's Pride Corporation employs approximately 37,500 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. Its primary distribution is through retailers and foodservice distributors.