In a press release dated February 20th Pilgrim’s Pride Corp. (PPC) announced results for Q4 and FY 2019 ending December 29th 2019.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
|
4th Quarter Ending
|
Dec. 29th 2019
|
Dec. 30th 2018
|
Difference (%)
|
|
Sales:
|
$3,063,489
|
$2,650,789
|
+11.5
|
|
Gross profit:
|
$201,395
|
$111,848
|
+80.1
|
|
Operating income:
|
$85,792
|
$26,635
|
+263.0
|
|
Pre-tax Income
Net Income Notes1 and 2
|
$110,9161
$92,235
|
$(29,171)
$(8,227)
|
+480.0
+1,221.0
|
|
Diluted earnings per share:
|
$0.37
|
$(0.03)
|
+1,333.0
|
|
Gross Margin (%)
|
6.6
|
4.2
|
+57.1
|
|
Operating Margin (%)
|
2.8
|
0.9
|
+211.0
|
|
Profit Margin (%)
|
3.0
|
(0.3)
|
+1,000.0
|
|
Long-term Debt:
|
$2,276,029
|
$2,295,190
|
-0.8
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
6.3
|
|
|
|
Return on Equity (%)
|
16.2
|
|
|
|
Operating Margin (%)
|
5.7
|
|
|
|
Profit Margin (%)
|
3.2
|
|
|
|
Total Assets Dec. 29th / Dec. 30th 2018
|
$7,102,364
|
$2,295,190
|
+19.8
|
|
Market Capitalization
|
$6,070,000
|
|
|
Note 1. Gain on sale of previous purchase $56.8 million.
Note 2. Tax benefit $20.9 million
| For FY 2019 PPC earned $456.5 million on revenue of $111,4 million with an EPS of $1.83. Comparative values for FY 2018 were net earnings of $246.8 million on revenue of $111,4 million with an EPS of $1.00.
52-Week Range in Share Price: $19.34 to $ 33.67 50-day moving average $28.32
Market Close 20th February $25.38 21st February post-release 13H00 $24.35
Forward P/E 9.3 Beta 0.7 PEG ratio 0.7
Pilgrim’s Pride is controlled by JBS. S. A. of Brazil with 78.8 percent of equity.
In commenting on results Jayson Penn, CEO of Pilgrim's Pride stated
“While overall global market conditions including U.S. commodity chicken improved during 2019, our team members have continued to deliver on our strategy, achieving a significant increase in relative performance compared to last year and to our industry competition. Our diverse global footprint has contributed to well-balanced and more consistent results against different specific market conditions. We maintain our approach to the successful Key Customer strategy, which is the basis for our strong growth. While our product portfolio is already differentiated, we are investing to further innovate, and increase our capacities and capabilities to meet customer demand. We expect value-added, specialty products to account for a meaningfully larger portion of our total results over the next few years as we continue to de-emphasize the mix of more volatile commodity sales and strengthen our margin profile,”
|
Jayson Penn CEO
|
He added “In Q4, our operating performance in the U.S. has continued to improve, driven by our partnership with Key customers and the relentless focus on executing and delivering the best results possible despite changes in market conditions. Within our case-ready and small-bird businesses, strong demand, especially from QSR customers, has continued to outstrip supply. The commodity sector has continued to be challenging but we experienced improved market conditions compared to 2018. Our U.S. Prepared Foods continues to evolve, reflecting the investments made over the last few years.”
“Weak macro conditions during Q4 in Mexico contributed to uncertainties in consumer spending and demand, especially in traditional markets. Although volume growth was solid, prices were below seasonal expectations. Despite the difficult market environment in Q4, our Mexican business has continued to perform well operationally versus the industry, and was able to generate an improvement in results during fiscal 2019 compared to 2018.”