In a press release dated October 26th Pilgrim’s Pride Corp. (PPC) announced results for the 3rd Quarter of FY 2022 ending September 25th. The report includes operations in the U.S., Mexico, the E.U. and the U.K.
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)
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3rd Quarter Ending
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September 25th 2022
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September 26th 2021
|
Difference (%)
|
|
Sales:
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$4,468,969
|
$3,827,566
|
+16.8
|
|
Gross profit:
|
$497,270
|
$371,843
|
+33.7
|
|
Operating income:
|
$339,202
|
$120,777
|
+180.8
|
|
Pre-tax Income
Net Income / (loss)
|
$324,748
$258,999
|
$91,220
$60,835
|
+256.0
+325.7
|
|
Diluted earnings per share:
|
$1.08
|
$0.25
|
+332.0
|
|
Gross Margin (%)
|
11.1
|
9.7
|
+14.4
|
|
Operating Margin (%)
|
7.6
|
3.2
|
+137.5
|
|
Profit Margin (%)
|
5.8
|
1.6
|
+262.5
|
|
Long-term Debt and lease obligations:
|
$3,452,805
|
$3,564,263
|
-3.1
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
13.9
|
|
|
|
Return on Equity (%)
|
35.0
|
|
|
|
Operating Margin (%)
|
11.4
|
|
|
|
Profit Margin (%)
|
5.4
|
|
|
|
Total Assets ’22 22.7% / ’21 25.8% intangibles
|
$9,079,012
|
$8,913,205
|
+1.9
|
|
Market Capitalization November 1st
|
$5,600,000
|
$7,610,000
|
-26.4
|
Notes for the 2nd Quarter:
SGA ’22 $158 million comprising 3.5% of sales compared to ’21 $251 million at 6.5% of sales
Foreign Currency loss $54 thousand ’22; $2.4 million ‘21
Tax payment $65.7 million ’22; $30.3 million’21.
Miscellaneous income ’22 19.8 million; $1.4 million ’21.
52-Week Range in Share Price: $20.23 to $34.66 50-day Moving average $24.79
Market Close Oct. 26th pre-release $22.57; Market Close Oct. 27th $23.27
Forward P/E 8.4 5-year Beta 1.0
In reviewing the relative revenue and contribution to operating profit, the following proportions of Company totals were derived from data presented:-
Geographic Segment Proportion of Revenue Contribution to Operating Profit
U.S. 63.5% 99.9%
U.K. and E.U. 26.9% 4.1%
Mexico 9.6% (4.0)%
In commenting on Q3 results Fabio Sandri, CEO of Pilgrim's Pride Corp. stated, “During the third quarter, we experienced significant changes in market fundamentals. To navigate these challenges, our team members maintained their determination and focus on our operations. Throughout the quarter, commodity cutout values in the U.S. declined from five-year highs while inflationary pressures continued to mount”.
Sandri continued “Our strong performance in the U.S. highlights the strength and effectiveness of our strategy. Our diversified portfolio offerings across multiple bird sizes helps mitigate volatility, whereas our Key Customer relationships cultivated profitable growth for all involved. When these factors are combined with our relentless focus on operational excellence, we demonstrated our ability to drive strong performance throughout a challenging environment,”
In commenting on non-U.S. businesses Sandri opined “Despite continued inflationary headwinds and a challenging consumer environment, our U.K. and Europe business improved its adjusted EBITDA from the previous quarter and previous year. Our Mexico business experienced a decline in sales and profitability relative to prior year and the prior quarter given seasonal changes in demand and continued issues with bird mortality due to disease. The Mexico business has historically experienced significant quarter-over-quarter earnings volatility. Nonetheless, we remain confident in the business and its long-term prospects,”
With respect to ESG Sandri stated “I am proud of our progress to date in sustainability and look forward to continuing our journey towards Net Zero, especially as it simultaneously strengthens our business and creates a better future for all of our team members and their communities. I am very confident that these efforts, when combined with our team’s ability to consistently execute our strategy, will help drive our vision of becoming the best and most respected company in our industry, even under the most difficult circumstances,”