Pilgrim's Pride (PPC) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached $4.6 billion, up 5.2% year-over-year, with adjusted EBITDA of $660.4 million (14.4% margin), more than doubling the prior year, and GAAP net income of $350 million.

• U.S. and Europe segments drove profit growth through operational excellence, portfolio diversification, and cost reductions, while Mexico faced lower profitability due to market pricing and currency headwinds.

• Operating income for Q3 rose to $508.4 million, and adjusted net income was $387 million.

• Liquidity improved with a net leverage ratio of 0.65x adjusted EBITDA and nearly $3 billion in cash and available credit.

• Sustainability progress included a 17% reduction in Scope 1 and 2 GHG emissions since 2019 and a 69% improvement in safety.

Financial highlights

• Q3 2024 net sales were $4.6 billion (+5.2% YoY); nine months: $13.5 billion (+5.2% YoY).

• Adjusted EBITDA for Q3 was $660.4 million (14.4% margin), up from $324.1 million (7.4%) last year.

• Gross profit for Q3 was $684 million, nearly double the prior year.

• GAAP EPS for Q3 was $1.47; adjusted EPS was $1.63.

• Cash from operations for nine months was $1.64 billion; cash and equivalents at period end: $1.88 billion.

Outlook and guidance

• Chicken production growth for 2024 projected at 1.7% year-over-year, with balanced supply and demand expected.

• U.S. chicken prices expected to remain stable into Q4 and early 2025, supported by strong retail demand.

• Management expects continued growth through operational excellence, portfolio diversification, and key customer partnerships.

• Europe expected to sustain 8.5%-9% adjusted EBITDA margins, with EBIT margins targeted at 6%-8%.

• Mexico anticipated to rebound from seasonal Q3 softness as demand normalizes.