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Sep 24, 2023

Pilgrim's Pride Q3 2023 Earnings Report

Pilgrim's Pride's Q3 2023 performance was marked by $4.4 billion in net sales and an operating income of $206.4 million.

Key Takeaways

Pilgrim's Pride reported third quarter 2023 results with $4.4 billion in net sales and operating income of $206.4 million. The company's global and diversified portfolio drove improved margins across all regions.

Net Sales reached $4.4 billion.

GAAP Net Income was $121.6 million and GAAP EPS was $0.51; Adjusted Net Income was $136.7 million with Adjusted EPS at $0.58.

Consolidated GAAP operating income margin stood at 4.7%.

Adjusted EBITDA was $324.0 million, with a 7.4% margin, featuring adjusted EBITDA margins of 7.0% in the U.S., 6.1% in the U.K. & Europe, and 12.4% in Mexico.

Total Revenue
$4.36B
Previous year: $4.47B
-2.4%
EPS
$0.58
Previous year: $1.09
-46.8%
Adjusted EBITDA
$324M
Previous year: $461M
-29.6%
Adjusted EBITDA margin
7.4%
Previous year: 10.3%
-28.2%
Gross Profit
$346M
Previous year: $499M
-30.6%
Cash and Equivalents
$899M
Previous year: $654M
+37.5%
Free Cash Flow
$165M
Previous year: $223M
-26.2%
Total Assets
$9.93B
Previous year: $9.08B
+9.3%

Pilgrim's Pride

Pilgrim's Pride

Pilgrim's Pride Revenue by Geographic Location

Forward Guidance

Pilgrim's is progressing with growth projects to support Key Customers and diversify its portfolio, including the commencement of start-up for the Athens, Georgia expansion and continued construction of a new protein conversion plant in South Georgia.

Positive Outlook

  • Operational excellence programs are driving improved margins across all regions.
  • Key Customer partnerships continue to strengthen the business.
  • Diversification through branded and differentiated offerings is proving beneficial.
  • The U.S. Fresh business is showing sustained operational improvement and enhanced market fundamentals.
  • The U.K. and Europe business continues on its profitability growth trajectory through manufacturing network optimization.

Challenges Ahead

  • The company faces uneven market conditions.
  • Consumer inflation persists.
  • The commodity business remains under volatile market conditions.
  • There are challenges in live operations that require continuous improvement.
  • Potential supply risks exist.

Revenue & Expenses

Visualization of income flow from segment revenue to net income