In a press release dated May 1st Pilgrim’s Pride Corp. (PPC) announced results for the 1st Quarter FY 202 ending March 31st 2023. The quarterly figures showed positive earnings for all three segments with higher revenue and operating profit across all three geographic areas. Earnings were appreciably above Q1 2023 and exceeded consensus estimates on both revenue and earnings for Q1 2024.
The following table summarizes the results for Q1 2024 derived from the SEC 10-Q form and the Company release. Values are compared with the corresponding Q3 FY 2022 (Values expressed as US$ x 103 except EPS)
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1st Quarter 2024 and 2023, Ending
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March 31st 2024
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March 26th 2023
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Difference (%)
|
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Sales:
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$4,361,934
|
$4,165,628
|
+4.8
|
|
Gross profit:
|
$383,909
|
$173,047
|
+121.9
|
|
Operating income:
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$250,274
|
$31,343
|
+698.5
|
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Pre-tax Income
Net Income*
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$227,000
$174,421
|
$(3,209)
$5,187
|
+7,173
+3,263
|
|
Diluted earnings per share:
|
$0.73
|
$0.02
|
+3,550
|
|
Gross Margin (%)
|
8.8
|
4.2
|
+109.5
|
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Operating Margin (%)
|
5.7
|
0.8
|
+612.5
|
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Profit Margin (%)
|
4.0
|
0.1
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+4,100
|
|
Long-term Debt and other liabilities1:
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$3,593,214
|
$3,584,369
|
+0.3
|
|
12 Months Trailing:
|
|
|
|
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Return on Assets (%)
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5.5
|
|
|
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Return on Equity (%)
|
15.4
|
|
|
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Operating Margin (%)
|
6.1
|
|
|
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Profit Margin (%)
|
2.8
|
|
|
|
Total Assets (21.6% intangibles)
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$9,768,340
|
$9,810,361
|
-0.4
|
|
Intraday Market Capitalization
May 6th ‘24/ Dec 31st ‘23
|
$6,840,000
|
$5,490,000
|
+56.6
|
1. March 31st 2014/ December 31st 2023.
- Q1 2024, $10.3 million interest income (Q1 2023, $36 million)
- Q1 2024 $3.3 million miscellaneous income (Q1 2023, $22.7 million)
- Q1 2024 $4.3 million gain in foreign currency transactions (Q1 2023 $22.7 million loss)
Operating income and sales posted by the three business segments during Q1 2024 were:-
U.S. 71.7 percent of company operating income on 59.1 percent of sales
Europe 12.4 percent of company operating income on 29.1 percent of sales
Mexico 15.9 percent of company operating income on 11.8 percent of sales
52-Week Range in Share Price of PPC: $19.96 to $36.99. 50-day Moving average, $34.05
Market Close: May 1st pre-release $35.54.
Close: May 2nd post-release $35.95.
Current Forward P/E 14.6 Beta 0.8
Equity held by insiders and holding Company: 82.6 percent, Institutions, 17.0 percent
In commenting on Q4 results Fabio Sandri, CEO stated “Although we experienced depressed market conditions and persistent consumer inflation throughout 2023, we saw this as opportunity to enhance our competitive advantage. To that end, we focused on consistent execution of our strategies, controlling what we can control, and maintaining investment in our operations. These efforts further strengthened our business, accelerating our profitable growth as market conditions evolved,”
Sandri continued “During the first quarter, the U.S. continued to improve as Big Bird realized significant benefits from enhanced operational efficiencies and market fundamentals. Case Ready and Small Bird continued to grow from increased distribution to Key Customers, promotional activity, and the value of chicken to consumers. Prepared Foods also drove significant growth in both retail and food service through branded offerings, further diversifying the portfolio.
Addressing Europe, Sandri noted “Consumer inflation and labor costs continue to be challenging. Nonetheless, the team secured additional business with retail Key Customers, drove branded growth above category averages, and identified further
In relation to Mexico, Sandri observed, ”We improved through a combination of enhanced supply and demand fundamentals in the commodity market, increased Key Customer partnerships, and further momentum of branded offerings”.
Sandri concluded, “Our strategies continue to demonstrate their effectiveness as we’ve grown ahead of the markets with our Key Customers. Similarly, our branded portfolio continues to gain acceptance throughout the market, further diversifying our portfolio. When these efforts are combined with our operational excellence initiatives to expand capacity, we can further drive our profitable growth,”