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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.
Pilgrim's Pride
Pilgrim's Pride
Pilgrim's Pride Revenue by Geographic Location
Revenue by Geographic Location
U.S. Revenue
CapyFin.comEurope Revenue
CapyFin.comMexico Revenue
CapyFin.com 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.
- Mexico business faced unique circumstances on live operations and unbalanced market fundamentals.
- GAAP Net Loss of $155.0 million and negative GAAP EPS of $0.66.
- Consolidated GAAP Operating Loss margin of 1.9%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income