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Mar 26, 2023

Pilgrim's Pride Q1 2023 Earnings Report

Pilgrim's Pride reported first quarter 2023 results with net sales of $4.2 billion and operating income of $31.3 million.

Key Takeaways

Pilgrim's Pride Corporation reported its first quarter 2023 financial results with net sales of $4.2 billion and operating income of $31.3 million. The company's U.S. business improved relative to the prior quarter, while the U.K. and Europe business continued to recover, and the Mexico business rebounded.

Net Sales of $4.2 billion.

GAAP Net Income of $5.6 million and GAAP EPS of $0.02. Adjusted Net Income of $19.0 million or Adjusted EPS of $0.08.

Consolidated GAAP operating income margin of 0.8%.

Adjusted EBITDA of $151.9 million, or a 3.6% margin, with adjusted EBITDA margins of 1.8% in the U.S., 5.3% in the U.K. & Europe, and 8.5% in Mexico.

Total Revenue
$4.17B
Previous year: $4.24B
-1.7%
EPS
$0.08
Previous year: $1.18
-93.2%
Adjusted EBITDA
$152M
Previous year: $502M
-69.7%
Adjusted EBITDA margin
3.6%
Previous year: 11.8%
-69.5%
Gross Profit
$173M
Previous year: $542M
-68.1%
Cash and Equivalents
$151M
Previous year: $726M
-79.2%
Free Cash Flow
-$293M
Previous year: $145M
-301.8%
Total Assets
$9.23B
Previous year: $9.32B
-1.0%

Pilgrim's Pride

Pilgrim's Pride

Pilgrim's Pride Revenue by Geographic Location

Forward Guidance

Pilgrim's Pride continues to grow and diversify its portfolio, support key customer growth, and improve operational excellence. The company is focused on reducing energy intensity and greenhouse gas emissions throughout its supply chain.

Positive Outlook

  • Expansion at Athens, Georgia facility remains on track.
  • Automation improvements are progressing as planned.
  • New protein conversion plant in south Georgia remains on track.
  • State-of-the-art poultry farm in the U.K. can reduce emissions by nearly 100%.
  • Intense focus on reducing energy intensity at processing plants.

Challenges Ahead

  • Elevated input costs.
  • Persistent inflation.
  • Ample protein availability.
  • Challenging circumstances in the U.S. commodity business, especially in January.
  • Continued inflationary headwinds and seasonal changes in demand in the U.K. and Europe.

Revenue & Expenses

Visualization of income flow from segment revenue to net income