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Dec 25, 2022
Pilgrim's Pride Q4 2022 Earnings Report
Pilgrim's Pride experienced a challenging Q4 2022 with a net loss, but demonstrated resilience through portfolio diversification and strategic partnerships.
Key Takeaways
Pilgrim's Pride reported a net sales increase of 2.2% to $4.1 billion in Q4 2022. However, the company faced a GAAP net loss of $155 million, with an adjusted EBITDA of $62.9 million, reflecting a 1.5% margin. The U.S. operations showed positive EBITDA results, while Mexico was negatively impacted by live operations and market fundamentals.
Net sales increased by 2.2% to $4.1 billion.
GAAP net loss was $155.0 million, with a negative GAAP EPS of $0.66.
Adjusted EBITDA was $62.9 million, representing a 1.5% margin.
U.S. business generated positive EBITDA despite commodity market declines, supported by diversified portfolio and key customer partnerships.
Revenue by Geographic Location
Forward Guidance
The company did not provide a quantitative forward guidance. However, they mentioned their investments in Athens, GA, the construction of a new protein conversion plant and further investments in automation remain on track.
Positive Outlook
- U.S. business portfolio delivered strong results in the face of extreme volatility in the commodity markets and persistent inflation.
- Prepared Foods business continued its momentum in branded fully cooked products.
- U.K. and Europe business continued efforts to further optimize its manufacturing network and consolidate its back-office operations.
- Pilgrim’s was externally recognized for its progress in Sustainability as all ESG scores improved throughout the year.
- Investments in Athens, GA to support Key Customer growth, the construction of our new protein conversion plant and further investments in automation remain on track.
Challenges Ahead
- Commodity cutout values experienced record volatility.
- Inflation remained persistent with input costs, including grain, utilities, and labor.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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