In a press release dated October 30th Pilgrim’s Pride Corp. (PPC) announced results for the 3rd Quarter FY 2024 ending September 29th. The quarterly figures showed positive earnings for all three segments with higher revenue and operating profit across all three geographic areas. Earnings were 4.2 percent above above consensus estimates but revenue fell short of an expectation of $4,600 million.
The following table summarizes the results for Q3 2024 derived from the SEC 10-Q form and the Company release. Values are compared with the corresponding Q2 FY 2023 (Values expressed as US$ x 103 except EPS)
|
3rd Quarters Ending
|
September 29th 2024
|
September 24th
2023
|
Difference (%)
|
|
Sales:
|
$4,584,979
|
$4,360,196
|
+5.2
|
|
Gross profit:
|
$683,970
|
$345,882
|
+97.7
|
|
Operating income:
|
$508,354
|
$206,373
|
+146.3
|
|
Pre-tax Income
Net Income
|
$481,599
$349,990
|
$166,120
$121,567
|
+189.9
+187.8
|
|
Diluted earnings per share:
|
$1.47
|
$0.51
|
+188.2
|
|
Gross Margin (%)
|
14.9
|
7.9
|
+88.6
|
|
Operating Margin (%)
|
11.1
|
4.7
|
+136.2
|
|
Profit Margin (%)
|
7.6
|
2.8
|
+171.4
|
|
Long-term Debt and other liabilities1:
|
$3,422,258
|
$3,584,369
|
-4.5
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
9.1
|
|
|
|
Return on Equity (%)
|
27.0
|
|
|
|
Operating Margin (%)
|
11.5
|
|
|
|
Profit Margin (%)
|
5.5
|
|
|
|
Total Assets Sept.29th 2024/Dec. 31st 2023
|
$10,700,534
|
$9,810,361
|
+9.1
|
|
Intraday Market Capitalization
August 2nd ‘24/ Sept. 30th ‘23
|
$12,760,000
|
$5,400,000
|
+136.3
|
Notes.
1. Sept. 29th 2024/ December 31st 2023.
- Q3 2024, $22.1 million investment loss (Q3 2023, $12.1 million gain)
- Q3 2024 $7.9 million miscellaneous loss (Q3 2023, $2.2 million gain)
- Q3 2024 $0.7 million gain in foreign currency transactions (Q3 2023 $8.9 million loss)
Operating income and sales posted by the three business segments during Q3 2024 were:-
U.S. 82.5 percent of company operating income on 60.4 percent of sales
Europe 9.0 percent of company operating income on 28.5 percent of sales
Mexico 8.5 percent of company operating income on 11.1 percent of sales
52-Week Range in Share Price of PPC: $25.23 to $55.50. 50-day Moving average, $45.68
Market Close: October 29th: pre-release $48.09.
Close: November 5th : $53.28, representing a gain of 11.7 percent over 5 trading days
Current Forward P/E 13.8 Beta 0.8
Equity held by insiders and holding Company: 82.6 percent, Institutions, 16.1 percent
In commenting on Q2 results Fabio Sandri, CEO stated, “Throughout the quarter, we continued to emphasize operational excellence, diversify our portfolio and cultivate partnerships with Key Customers to drive value for the consumer. He added “In the U.S., the relative affordability and availability of chicken drove increased demand across retail and food service. Case Ready and Small Bird drove profitable growth as demand improved from Key Customers and there was continued progress in operational excellence. In Big Bird, profitability grew from sustained improvements in production efficiencies, lower input costs, and enhanced commodity cutout values. Similarly, Prepared continued to diversify the portfolio through incremental distribution across retail and foodservice”.
Addressing European operations Sandri stated “Europe realized its highest quarterly adjusted EBITDA to date given continued progress in operational excellence, further diversification through branded offerings and strengthening Key Customer partnerships. New product introductions continue to gain momentum as the business launched over 280 new products during the quarter.
In relation to Mexico Sandri noted, “Mexico continued to build its presence with Key Customers across retail and foodservice and further diversify its portfolio through brands. Investments in operational excellence to build capacity and drive operational efficiencies remained on track. He concluded, “Mexico continued to successfully drive all pillars of our strategies during typical seasonality for the business. As a result, we are increasingly well positioned to capture both short- and long-term growth opportunities,”