Sales and earnings for Pilgrim’s Pride rise in the first quarter
The net income of Pilgrim’s Pride Corp. experienced a significant increase from $100.21 million, or 41¢ per share, in the same period last year to $280.44 million, or $1.15 per share on the common stock, for the first quarter that concluded on March 27. Net sales improved to $4.24 billion from $3.27 billion, a roughly 30% rise.
With adjusted net income of $287.2 million, adjusted profits per share came to $1.18. At $501.8 million, or an 11.8% margin, adjusted EBITDA was 97.7% more than it was a year earlier.
The company’s stock price increased as a result of the impressive results; on April 28, it closed at $29.28, up 9.5% from $26.73 on April 27, the day before earnings were disclosed.
Pilgrim’s CEO Fabio Sandri stated, “We focused on consistent execution of our strategy throughout the first quarter.” As a result, adjusted EBITDA more than quadrupled from a year ago and first quarter net sales rose by about 30%. Overall, I’m really happy with our team’s performance and their ability to increase our business’s top and bottom lines while navigating challenging market conditions.
The company said that improvements in operations, such as automation and a focus on servicing important clients, combined with a diverse portfolio improved outcomes and increased profits resilience. food service enterpriseachieved pre-pandemic sales volumes and retail volumes remained strong.
The commodity large bird deboning business had an improvement in margins despite higher input costs, higher operating costs, and a less-than-optimal product mix due to persistent labor constraints across all business segments. Pilgrim’s brands are still gaining traction in the US: e-commerce tripled year over year, Just Bare increased 49%, and Pilgrim’s completely cooked rose over 150%.
According to Mr. Sandri, “our US business led the way in performance as our foodservice recovered to pre-COVID levels and our retail demand remained stable.” Importantly, despite headwinds from inflation, consumer demand remained strong, maintaining our momentum in the retail branded sector. Through large community investments and compensation increases that have never been seen before, we have improved our operational staffing levels and given our team members a better future. Our team overcame challenging conditions by providing our important clients with exceptional service, enhancing mix, and containing inflation across the whole supply chain.
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According to the corporation, business in Mexico exhibited consistent growth, particularly in branded product lines, and profitability followed the typical seasonality of the industry. Unprecedented inflation, rising input costs, and persistent labor shortages had a severe negative impact on business throughout Europe. Throughout Europe, situations of excess supply posed another challenge to live pork operations. Pilgrim’s is concentrating on harnessing the firms’ combined strengths in the UK to generate operational efficiencies and seize synergies.
We experienced unfavorable market circumstances and significant cost inflation that have diluted attempts to enhance margins, Mr. Sandri continued, despite the fact that our UK and European business has taken a number of actions to improve profitability. “The teams are confident in their strategies and are collaborating with important clients while utilizing global supply chain alliances to resume profitable expansion.
“Mexico recovered from the previous quarter despite less than optimal grow-out conditions and rising grain costs, thanks to better-than-expected demand. We keep investing in capacity growth and growing our branded company.