In a press release dated April 26th Pilgrim’s Pride Corp. (PPC) announced results for the 1st Quarter of FY 2023 ending March 26th 2022. The quarterly figures showed a sharply reduced income from the comparative 1st quarter of 2023 attributed to lower unit revenue across the entire product mix
The following table summarizes the results for Q1 FY 2023 derived from the SEC 10-Q form and the Company release. Values are compared with the corresponding previous fiscal year (Values expressed as US$ x 103 except EPS)
|
1st Quarter Ending
|
March 26th
2023
|
March 27th
2022
|
Difference (%)
|
|
Sales:
|
$4,165,628
|
$4,240,395
|
-1.8
|
|
Gross profit:
|
$173,047
|
$541,980
|
-68.1
|
|
Operating income:
|
$31,343
|
$402,113
|
-99.2
|
|
Pre-tax Income
Net Income
|
$(3,209)
$5,631*
|
$355,779
$280,438
|
-100.9
-98.0
|
|
Diluted earnings per share:
|
$0.02
|
$1.15
|
-98.3
|
|
Gross Margin (%)
|
4.2
|
12.8
|
-67.2
|
|
Operating Margin (%)
|
0.8
|
9.5
|
-91.5
|
|
Profit Margin (%)
|
0.1
|
6.6
|
-98.5
|
|
Long-term Debt and other liabilities
March 26th 2023/ December 25th 2022
|
$3,480,072
|
$3,468,140
|
+0.3
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
N/A
|
|
|
|
Return on Equity (%)
|
N/A
|
|
|
|
Operating Margin (%)
|
0
|
|
|
|
Profit Margin (%)
|
0
|
|
|
|
Total Assets (22.6% and 22.4% intangibles)
|
$9,227,505
|
$9`,255,769
|
+0.3
|
|
Intraday Market Capitalization April 28th 2023
|
$5,545,000
|
|
|
* $8.8 million tax benefit
Operating income/(loss) posted by the three business segments during the 1st quarter of FT 2023were:-
U.S. $(53.6) million on $2,432 million sales representing 58.4 percent of total percent of total sales
E.U and U.K. $20.8 million on $1,239 million sales representing 29.7 percent of total percent of total sales
Mexico $38.4 million on $494 million sales representing 11.9 percent of total percent of total sales
In commenting on Q1 results, Fabio Sandri CEO stated, “Our strategy of fostering our partnerships with Key Customers, operational excellence and growing our diversified portfolio of businesses, has demonstrated its resilience to a variety of market challenges over the last few years.” He added “Despite improving market fundamentals during the quarter, business conditions remained difficult given elevated input costs, persistent inflation, and ample protein availability. Nonetheless, our team members’ relentless determination supported an improvement in margins relative to the prior quarter in all geographies.”
For the U.S. Sandri noted “The U.S. business improved on the strength of both Small Birds and Prepared Foods. Case Ready continued to drive growth above industry averages with Key Customers, whereas Big Bird Debone made operational improvements throughout the quarter. Our U.S. commodity business continued to face exceptionally challenging circumstances, especially in January. Nevertheless, our diverse portfolio across bird sizes and branded offerings mitigated market impacts, whereas our intense focus on operational excellence enhanced our performance. Our commitment to profitable growth continues as our automation projects, plant expansion at Athens, Georgia, and construction of a new protein conversion plant in south Georgia all remain on track,”
Commenting on the E.U and the U.K. Sandri explained, “Our U.K. and Europe team worked diligently of over the past year to mitigate inflationary supply chain pressures. Their relentless focus on driving scale and cost synergies across our businesses enhanced our ability to work and grow with Key Customers
Sandri expressed satisfaction with operations in Mexico, stating, “The business rebounded solidly throughout the quarter as live operations improved and market fundamentals stabilized. As a result, margins returned to historical levels. I’m proud of the Mexico team to quickly remediate pressing issues in live operations to meet Key Customer needs, drive operational excellence to alleviate the impact from demanding business conditions, and diversify our portfolio through innovation and branded growth,”
He concluded “Throughout the past year, we’ve had an intense focus on reducing energy intensity at our processing plants. I’m pleased that we’ve extended our efforts throughout our supply chain to create ways to further reduce our greenhouse gas emissions footprint, creating a better future for all team members,”
52-Week Range in Share Price of PPC: $20.59 to $34.66. 50-day Moving average, $23.25
Market Close: Wednesday April 26th $21.51. Close Thursday April 27th post-release $22.09 up 2.6 percent.
Trailing P/E 7.6