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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Pilgrim’s Pride Reports on Q3

10/28/2021

In a press release dated October 27th Pilgrim’s Pride Corp. announced results for the 3rd Quarter ending September 26 th.

 

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)

 

 

 

 

 

 

3rd Quarters Ending September 26th/27 th

2021

2020

Difference (%)

Sales:

$3,827,566

$3,075,121

+24.5

Gross profit:

$371,843

$313,842

+18.4

Operating income:

$120,777

$94,288

+28.1

Pre-tax Income

Net Income

$91,220

$60,725

$56,035

$33,446

+62.8

+81.6

Diluted earnings per share:

$0.25

$0.14

+78.6

Gross Margin (%)

9.7

10.2

-4.9

Operating Margin (%)

3.2

3.1

+4.7

Profit Margin (%)

1.6

1.1

+45.5

Long-term Debt:

$3,304,030

$2,404,307

+37.4

12 Months Trailing:

     

Return on Assets (%)

+5.4

   

Return on Equity (%)

-1.3

   

Operating Margin (%)

+4.9

   

Profit Margin (%)

-0.3

   

Total Assets

$8,832,843

$7,474,497

+18.2

Market Capitalization

$6,945,000

   

52-Week Range in Share Price: $16.24 to $29.70 50-day Moving average $28.74

Forward P/E 11.9 Beta 1.1


In commenting on results Fabio Sandri, CEO stated “On the strength of our product portfolio, we performed well in the third quarter with adjusted EBITDA up substantially over the third quarter of 2020 and the more normalized results of Q3 2019, despite the ongoing challenges brought on by the COVID pandemic.”

 

Sandri stressed availability of labor as a headwind noting “Labor shortages continue to be our most pressing issue. Staffing challenges, have hindered our ability to achieve the ideal product mix with efficient processes. We will continue to make adjustments on a plant-by-plant basis to improve staffing levels and optimize our mix.”

 

Expanding on the operating environment Sandri stated “In our U.S. business, demand and pricing have been robust, driven by ongoing high levels of demand at retail and the continued recovery in commercial foodservice. Prepared Foods volume was up 7% overall and 16% in the consumer channel as we purposefully grow our Pilgrim’s® and Just Bare® brands at retail in response to the continued growth in interest in our brands in that segment.”

 

Referring to operations outside the U.S. Sandri commented “In the third quarter in Mexico, our business continued to perform well, and grain pricing began to moderate as we come off of the seasonally strong summer months and head into fall. Moy Park and Pilgrim’s U.K. both faced shortages of labor and truck drivers as E.U. workers left the U.K. following Brexit. In addition, rising fuel costs put pressure on both these businesses”.


 
Copyright © 2022 Simon M. Shane