Pilgrim's Pride Q2 2021 Earnings Report
Key Takeaways
Pilgrim's Pride reported a 29% increase in net sales to $3.64 billion compared to the prior year. The company's adjusted EBITDA increased by 231.2% to $371.6 million, representing a 10.2% margin. While the U.S. business saw improved foodservice demand and retail strength, Mexico maintained strong momentum, and the European business showed operational improvements.
Net Sales increased by 29% year-over-year, reaching $3.64 billion.
Adjusted EBITDA surged by 231.2% year-over-year to $371.6 million, with a margin of 10.2%.
U.S. foodservice business improved year-over-year and sequentially, surpassing pre-pandemic levels, while retail volumes remained strong.
Mexico sustained its strong performance, driven by solid execution and improved economic conditions.
Pilgrim's Pride
Pilgrim's Pride
Pilgrim's Pride Revenue by Geographic Location
Forward Guidance
The company is optimistic about dining out and gathering with friends and family for meals as the world emerges from the COVID-19 pandemic. They are also focused on managing input costs and labor challenges.
Positive Outlook
- Optimistic about dining out and gathering with friends and family for meals as the world emerges from the COVID-19 pandemic
- Foodservice business was stronger than anticipated as restrictions continued to ease, boosting demand back above 2019 levels
- Expanded retail branded presence
- Grew our branded consumer packaged foods business in the second quarter by 215% by investing in our Just Bare® and Pilgrim’s® brands at retail and in e-commerce
- Mexico business had another strong quarter, driven by a balanced supply/demand equation and continuous improvements in operational performance
Challenges Ahead
- Higher and more volatile input costs
- Product mix issues resulting from continued, albeit improving, labor challenges
- Increasing grain costs
- Pilgrim’s UK has been affected by low hog prices
- Rising grain costs affecting Pilgrim's UK
Revenue & Expenses
Visualization of income flow from segment revenue to net income