Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's
largest poultry producers, reports its fourth quarter and year-end
2023 financial results.
2023 Highlights
- Net Sales of $17.4 billion.
- Consolidated GAAP Operating Income margin of 3.0%.
- GAAP Net Income of $321.6 million and GAAP EPS of $1.36.
Adjusted Net Income of $400.3 million, or adjusted EPS of
$1.69.
- Adjusted EBITDA of $1.0 billion, or a 6.0% margin, with
adjusted EBITDA margins of 5.3% in the U.S., 6.1% in the U.K. and
Europe, and 8.7% in Mexico.
- Our U.S. fresh portfolio demonstrated its resiliency,
overcoming challenging supply and demand fundamentals and elevated
input costs earlier in the year through its diversified offerings
across bird sizes, growth with Key Customers, and improved
production efficiencies through operational excellence.
- Prepared Foods continues to accelerate its momentum in fully
cooked branded offerings as Just Bare® and Pilgrim’s® grew over 59%
year over year. Digital platforms remain a key driver as sales more
than doubled compared to 2022.
- U.K. and Europe business reinforced the foundation to scale
profitable growth with Key Customers, to further diversify its
portfolio through branded innovation, and to drive operational
excellence efforts in manufacturing and back-office
consolidation.
- Mexico enhanced its capacity to grow with Key Customers and
increased the diversification of its offerings through the
introduction of new brands and further investments in live
operations.
- Sustainability efforts continue to drive reduction in
production emissions intensity as all regions improved performance
compared to 2022. Our progress was recognized externally as key
Sustainability-related scores improved.
- Strong liquidity position and net leverage ratio of 2.5x
Adjusted EBITDA through prudent management of working capital,
consistent execution of our strategies, and improved market
fundamentals.
- Progress of our investments to support Key Customer growth,
drive operational excellence, and further diversify our portfolio
are on target as we initiated production at our expanded Athens, GA
facility and start-up our new protein conversion plant is slated by
the end of Q1 of 2024.
Fourth Quarter
- Net Sales of $4.5 billion.
- Consolidated GAAP Operating Income margin of 4.1%.
- GAAP Net Income of $134.7 million and GAAP EPS of $0.57.
Adjusted Net Income of $139.3 million and adjusted EPS of
$0.59.
- Adjusted EBITDA of $309.5 million, or a 6.8% margin, with
adjusted EBITDA margins of 7.5% in the U.S., 7.6% in U.K. and
Europe, and 1.3% in Mexico.
- Our U.S. portfolio continued its momentum throughout the period
given promotional activity and new distribution with Key Customers
in Case Ready and Small Bird, branded momentum across Retail and
Food Service in Prepared Foods, and operational excellence efforts
in Big Bird.
- Our U.K. and Europe business increased year-over-year and
quarter-over-quarter sales and adjusted EBITDA from growth of
branded offerings, benefits from network and back-office
optimization, and enhanced Key Customer relationships.
- Our Mexico business grew branded offerings, increased presence
with Key Customers, and achieved better than breakeven results
despite weakened market fundamentals.
|
Unaudited |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31, 2023 |
|
December 25, 2022 |
|
Y/Y Change |
|
December 31, 2023 |
|
December 25, 2022 |
|
Y/Y Change |
| |
|
(In millions, except per share and
percentages) |
|
|
|
Net sales |
|
$ |
4,528.3 |
|
|
$ |
4,127.4 |
|
|
|
+9.7 |
% |
|
$ |
17,362.2 |
|
|
$ |
17,468.4 |
|
|
|
(0.6 |
)% |
| U.S. GAAP EPS |
|
$ |
0.57 |
|
|
$ |
(0.66 |
) |
|
|
(186.4 |
)% |
|
$ |
1.36 |
|
|
$ |
3.10 |
|
|
|
(56.1 |
)% |
| Operating income |
|
$ |
184.3 |
|
|
$ |
(77.5 |
) |
|
|
(337.7 |
)% |
|
$ |
522.3 |
|
|
$ |
1,176.6 |
|
|
|
(55.6 |
)% |
| Adjusted EBITDA(1) |
|
$ |
309.5 |
|
|
$ |
62.9 |
|
|
|
+392.4 |
% |
|
$ |
1,034.2 |
|
|
$ |
1,648.4 |
|
|
|
(37.3 |
)% |
| Adjusted EBITDA margin(1) |
|
|
6.8 |
% |
|
|
1.5 |
% |
|
|
+5.3 |
pts |
|
|
6.0 |
% |
|
|
9.4 |
% |
|
|
(3.4 |
)pts |
(1) Reconciliations for non-U.S. GAAP measures are provided in
subsequent sections within this release.
During 2023, commodities were exceptionally volatile as markets
began at near record lows given supply and demand imbalance and
availability of other proteins combined with unsettling consumer
sentiment. Throughout the year values gradually returned to more
seasonal levels, while cost inflation remained elevated compared to
historical standards.
“While our business faced a unique set of challenging conditions
in 2023, we persevered as our team members maintained a leadership
mindset and elevated their focus and execution of our strategy. As
a result, we demonstrated an ability to drive profitable growth
even under the most difficult circumstances as our sales and
adjusted EBITDA strengthened throughout the year and showed
increased momentum as we entered 2024,” said Fabio Sandri,
Pilgrim’s CEO.
In the 4th quarter, the U.S. portfolio continued to profitably
grow as Case Ready and Small Bird realized benefits from additional
promotional activity with Key Customers, more distribution, and
increased retail pricing spreads from competing proteins. Prepared
Foods also gained further momentum as branded offerings expanded
throughout retail and distribution improved in foodservice. As for
Big Bird, operating costs continued to improve from increased
production efficiencies and better market conditions.
“Given the actual market conditions, the affordability and
availability of chicken resonated with consumers. As such, we
worked closely with our Key Customers in both retail and food
service to drive increased traffic through promotions and broaden
their lineup of chicken offerings across fresh and prepared items,”
remarked Fabio Sandri.
The U.K. and Europe demonstrated progress again in profitability
improvement in the 4th quarter through Key Customer partnerships,
branded innovation, and operational excellence. The efforts were
accelerated by recent actions to further streamline our production
networks and support activities.
“While we’ve improved profitability throughout the year, we
recognize that speed to market with our diversified portfolio will
be critical to meet our growth aspirations, especially with Key
Customers. We implemented a more nimble organizational structure
that promotes ownership and discipline throughout our diversified
portfolio. Moving forward, we will continue to explore alternatives
across all aspects of the organization to cultivate profitable
growth,” remarked Fabio Sandri.
As for Mexico, supply and demand fundamentals were challenging
in October but gained strength throughout the quarter.
Despite market conditions, the team maintained an intense focus on
our strategy and our operations.
“While Mexico has continually faced volatile market conditions
quarter over quarter, it continues to generate strong, steady
results year over year. In the 4th quarter, we further diversified
our portfolio as our brands continue to gain strong traction with
consumers and retailers alike. Our investments to increase capacity
and reduce production risk through operational excellence are
proceeding as planned. Key Customer relationships continue to
strengthen as volumes ended up nearly double digits compared to
full year 2022,” said Fabio Sandri.
Pilgrim’s continues to make progress in sustainability as all
regions reduced their natural gas and electrical usage intensity
compared to 2022. External agencies have also recognized our
progress with improvements in key scores compared to 2022.
“While we had challenging market conditions during the year, our
commitment to sustainability remained firm. Our team identified
ways to embed innovative practices in our business to
simultaneously drive sustainability and enhance profitable growth.
This leadership mindset enables a better future for our team
members, strengthening our vision of becoming the best and most
respected company in our industry,” remarked Fabio Sandri.
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be
held on the morning of February 26, at 7:00 a.m. MT (9 a.m. ET).
Participants are encouraged to pre-register for the conference call
using the link below. Callers who pre-register will be given a
unique PIN to gain immediate access to the call and bypass the live
operator. Participants may pre-register at any time, including up
to and after the call start time.
To pre-register, go to:
https://services.choruscall.com/links/ppc240226.html
You may also reach the pre-registration link by logging in
through the investor section of our website at
www.pilgrims.com and clicking on the link under “Upcoming
Events.”
For those who would like to join the call but have not
pre-registered, access is available by dialing
+1 (844) 883-3889 within the US, or +1 (412) 317-9245
internationally, and requesting the “Pilgrim’s Pride
Conference.”
Replays of the conference call will be available on Pilgrim’s
website approximately two hours after the call concludes and can be
accessed through the “Investor” section of www.pilgrims.com.
About Pilgrim’s Pride
Pilgrim’s employs over 61,200 people and operates protein
processing plants and prepared-foods facilities in 14 states,
Puerto Rico, Mexico, the U.K., the Republic of Ireland and
continental Europe. The Company’s primary distribution is through
retailers and foodservice distributors. For more information,
please visit www.pilgrims.com.
Forward-Looking Statements
Statements contained in this press release that state the
intentions, plans, hopes, beliefs, anticipations, expectations or
predictions of the future of Pilgrim’s Pride Corporation and its
management are considered forward-looking statements. Without
limiting the foregoing, words such as “anticipates,” “believes,”
“estimates,” “expects,” “intends,” “may,” “plans,” “projects,”
“should,” “targets,” “will” and the negative thereof and similar
words and expressions are intended to identify forward-looking
statements. It is important to note that actual results could
differ materially from those projected in such forward-looking
statements. Factors that could cause actual results to differ
materially from those projected in such forward-looking statements
include: matters affecting the poultry industry generally; the
ability to execute the Company’s business plan to achieve desired
cost savings and profitability; future pricing for feed ingredients
and the Company’s products; outbreaks of avian influenza or other
diseases, either in Pilgrim’s Pride’s flocks or elsewhere,
affecting its ability to conduct its operations and/or demand for
its poultry products; contamination of Pilgrim’s Pride’s products,
which has previously and can in the future lead to product
liability claims and product recalls; exposure to risks related to
product liability, product recalls, property damage and injuries to
persons, for which insurance coverage is expensive, limited and
potentially inadequate; management of cash resources; restrictions
imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes
in laws or regulations affecting Pilgrim’s Pride’s operations or
the application thereof; new immigration legislation or increased
enforcement efforts in connection with existing immigration
legislation that cause the costs of doing business to increase,
cause Pilgrim’s Pride to change the way in which it does business,
or otherwise disrupt its operations; competitive factors and
pricing pressures or the loss of one or more of Pilgrim’s Pride’s
largest customers; currency exchange rate fluctuations, trade
barriers, exchange controls, expropriation and other risks
associated with foreign operations; disruptions in international
markets and distribution channels, including, but not limited to,
the impacts of the Russia-Ukraine conflict; the risk of
cyber-attacks, natural disasters, power losses, unauthorized
access, telecommunication failures, and other problems on our
information systems; and the impact of uncertainties of litigation
and other legal matters described in our most recent Form 10-K and
Form 10-Q, including the In re Broiler Chicken Antitrust
Litigation, as well as other risks described under “Risk Factors”
in the Company’s Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and subsequent filings with the Securities and Exchange
Commission. The forward-looking statements in this release speak
only as of the date of this release, whether as a result of new
information, future developments or otherwise, except as may be
required by applicable law.
| Contact: |
Andrew Rojeski |
| |
Head of Strategy, Investor
Relations, & Net Zero Programs |
| |
IRPPC@pilgrims.com |
| |
www.pilgrims.com |
|
PILGRIM’S PRIDE CORPORATION |
|
CONSOLIDATED BALANCE SHEETS |
|
|
| |
|
December 31, 2023 |
|
December 25, 2022 |
| |
|
(In thousands, except share and par value
data) |
|
Cash and cash equivalents |
|
$ |
697,748 |
|
|
$ |
400,988 |
|
| Restricted cash and cash
equivalents |
|
|
33,475 |
|
|
|
33,771 |
|
| Trade accounts and other
receivables, less allowance for credit losses |
|
|
1,129,178 |
|
|
|
1,097,212 |
|
| Accounts receivable from
related parties |
|
|
1,778 |
|
|
|
2,512 |
|
| Inventories |
|
|
1,985,399 |
|
|
|
1,990,184 |
|
| Income taxes receivable |
|
|
161,062 |
|
|
|
155,859 |
|
| Prepaid expenses and other
current assets |
|
|
195,831 |
|
|
|
211,092 |
|
|
Total current assets |
|
|
4,204,471 |
|
|
|
3,891,618 |
|
| Deferred tax assets |
|
|
4,890 |
|
|
|
1,969 |
|
| Other long-lived assets |
|
|
35,646 |
|
|
|
41,574 |
|
| Operating lease assets,
net |
|
|
266,707 |
|
|
|
305,798 |
|
| Identified intangible assets,
net |
|
|
853,983 |
|
|
|
846,020 |
|
| Goodwill |
|
|
1,286,261 |
|
|
|
1,227,944 |
|
| Property, plant and equipment,
net |
|
|
3,158,403 |
|
|
|
2,940,846 |
|
|
Total assets |
|
$ |
9,810,361 |
|
|
$ |
9,255,769 |
|
| |
|
|
|
|
| Accounts payable |
|
$ |
1,410,576 |
|
|
$ |
1,587,939 |
|
| Accounts payable to related
parties |
|
|
41,254 |
|
|
|
12,155 |
|
| Revenue contract
liabilities |
|
|
84,958 |
|
|
|
34,486 |
|
| Accrued expenses and other
current liabilities |
|
|
926,727 |
|
|
|
850,899 |
|
| Income taxes payable |
|
|
31,678 |
|
|
|
58,411 |
|
| Current maturities of
long-term debt |
|
|
674 |
|
|
|
26,279 |
|
|
Total current liabilities |
|
|
2,495,867 |
|
|
|
2,570,169 |
|
| Noncurrent operating lease
liabilities, less current maturities |
|
|
203,348 |
|
|
|
230,701 |
|
| Long-term debt, less current
maturities |
|
|
3,340,841 |
|
|
|
3,166,432 |
|
| Deferred tax liabilities |
|
|
385,548 |
|
|
|
364,184 |
|
| Other long-term
liabilities |
|
|
40,180 |
|
|
|
71,007 |
|
|
Total liabilities |
|
|
6,465,784 |
|
|
|
6,402,493 |
|
| Common stock, $.01 par value,
800,000,000 shares authorized; 261,931,080 and 261,610,518
shares issued at year-end 2023 and year-end 2022, respectively;
236,789,927 and 236,469,365 shares outstanding at year-end 2023 and
year-end 2022, respectively |
|
|
2,620 |
|
|
|
2,617 |
|
| Treasury stock, at cost,
25,141,153 shares at year-end 2023 and year-end 2022. |
|
|
(544,687 |
) |
|
|
(544,687 |
) |
| Additional paid-in
capital |
|
|
1,978,849 |
|
|
|
1,969,833 |
|
| Retained earnings |
|
|
2,071,073 |
|
|
|
1,749,499 |
|
| Accumulated other
comprehensive loss |
|
|
(176,483 |
) |
|
|
(336,448 |
) |
|
Total Pilgrim’s Pride Corporation stockholders’ equity |
|
|
3,331,372 |
|
|
|
2,840,814 |
|
| Noncontrolling interest |
|
|
13,205 |
|
|
|
12,462 |
|
|
Total stockholders’ equity |
|
|
3,344,577 |
|
|
|
2,853,276 |
|
|
Total liabilities and stockholders' equity |
|
$ |
9,810,361 |
|
|
$ |
9,255,769 |
|
|
PILGRIM’S PRIDE CORPORATION |
|
CONSOLIDATED STATEMENTS OF INCOME |
| |
| |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31, 2023 |
|
December 25, 2022 |
|
December 31, 2023 |
|
December 25, 2022 |
| |
|
(In thousands, except per share data) |
|
Net sales |
|
$ |
4,528,302 |
|
|
$ |
4,127,365 |
|
|
$ |
17,362,217 |
|
|
$ |
17,468,377 |
|
| Cost of sales |
|
|
4,207,255 |
|
|
|
4,031,583 |
|
|
|
16,243,816 |
|
|
|
15,656,574 |
|
|
Gross profit |
|
|
321,047 |
|
|
|
95,782 |
|
|
|
1,118,401 |
|
|
|
1,811,803 |
|
| Selling, general and
administrative expense |
|
|
131,087 |
|
|
|
142,840 |
|
|
|
551,770 |
|
|
|
604,742 |
|
| Restructuring activities |
|
|
5,661 |
|
|
|
30,466 |
|
|
|
44,345 |
|
|
|
30,466 |
|
|
Operating income (loss) |
|
|
184,299 |
|
|
|
(77,524 |
) |
|
|
522,286 |
|
|
|
1,176,595 |
|
| Interest expense, net of
capitalized interest |
|
|
66,813 |
|
|
|
41,369 |
|
|
|
202,272 |
|
|
|
152,672 |
|
| Interest income |
|
|
(12,308 |
) |
|
|
(4,071 |
) |
|
|
(35,651 |
) |
|
|
(9,028 |
) |
| Foreign currency transaction
losses (gains) |
|
|
(22,892 |
) |
|
|
16,469 |
|
|
|
20,570 |
|
|
|
30,817 |
|
| Miscellaneous, net |
|
|
(3,942 |
) |
|
|
(1,505 |
) |
|
|
(30,127 |
) |
|
|
(23,339 |
) |
|
Income before income taxes |
|
|
156,628 |
|
|
|
(129,786 |
) |
|
|
365,222 |
|
|
|
1,025,473 |
|
| Income tax expense |
|
|
22,417 |
|
|
|
25,256 |
|
|
|
42,905 |
|
|
|
278,935 |
|
|
Net income (loss) |
|
|
134,211 |
|
|
|
(155,042 |
) |
|
|
322,317 |
|
|
|
746,538 |
|
| Less: Net income (loss)
attributable to noncontrolling interests |
|
|
(442 |
) |
|
|
(66 |
) |
|
|
743 |
|
|
|
608 |
|
|
Net income (loss) attributable to Pilgrim’s
Pride Corporation |
|
$ |
134,653 |
|
|
$ |
(154,976 |
) |
|
$ |
321,574 |
|
|
$ |
745,930 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average shares
of common stock outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
236,790 |
|
|
|
236,469 |
|
|
|
236,725 |
|
|
|
239,766 |
|
|
Effect of dilutive common stock equivalents |
|
|
675 |
|
|
|
— |
|
|
|
572 |
|
|
|
628 |
|
|
Diluted |
|
|
237,465 |
|
|
|
236,469 |
|
|
|
237,297 |
|
|
|
240,394 |
|
| |
|
|
|
|
|
|
|
|
| Net income (loss)
attributable to Pilgrim's Pride Corporation
per share of common
stock outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.57 |
|
|
$ |
(0.66 |
) |
|
$ |
1.36 |
|
|
$ |
3.11 |
|
|
Diluted |
|
$ |
0.57 |
|
|
$ |
(0.66 |
) |
|
$ |
1.36 |
|
|
$ |
3.10 |
|
|
PILGRIM’S PRIDE CORPORATION |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
| |
| |
|
Year Ended |
| |
|
December 31, 2023 |
|
December 25, 2022 |
| |
|
(In thousands) |
| Cash flows from operating
activities: |
|
|
|
|
|
Net income |
|
$ |
322,317 |
|
|
$ |
746,538 |
|
| Adjustments to reconcile net
income to cash provided by operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
419,900 |
|
|
|
403,110 |
|
|
Loss on early extinguishment of debt recognized as a component of
interest expense |
|
|
20,694 |
|
|
|
— |
|
|
Loan cost amortization |
|
|
7,366 |
|
|
|
4,753 |
|
|
Share-based compensation |
|
|
7,226 |
|
|
|
6,985 |
|
|
Deferred income tax expense |
|
|
6,675 |
|
|
|
21,295 |
|
|
Gain on property disposals |
|
|
(6,052 |
) |
|
|
(18,908 |
) |
|
Asset impairment |
|
|
4,010 |
|
|
|
3,559 |
|
|
Accretion of bond discount |
|
|
2,278 |
|
|
|
1,717 |
|
|
Gain on equity method investments |
|
|
328 |
|
|
|
(2 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Trade accounts and other receivables |
|
|
(19,007 |
) |
|
|
(149,599 |
) |
|
Inventories |
|
|
12,602 |
|
|
|
(472,224 |
) |
|
Prepaid expenses and other current assets |
|
|
17,776 |
|
|
|
18,264 |
|
|
Accounts payable and accrued expenses |
|
|
(68,677 |
) |
|
|
263,288 |
|
|
Income taxes |
|
|
(8,878 |
) |
|
|
(142,455 |
) |
|
Long-term pension and other postretirement obligations |
|
|
(9,993 |
) |
|
|
(4,128 |
) |
|
Other operating assets and liabilities |
|
|
(30,688 |
) |
|
|
(12,330 |
) |
|
Cash provided by operating activities |
|
|
677,877 |
|
|
|
669,863 |
|
| Cash flows from investing
activities: |
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
(543,816 |
) |
|
|
(487,110 |
) |
|
Proceeds from insurance recoveries |
|
|
20,681 |
|
|
|
16,034 |
|
|
Proceeds from property disposals |
|
|
19,784 |
|
|
|
35,516 |
|
|
Purchase of acquired businesses, net of cash acquired |
|
|
— |
|
|
|
(9,692 |
) |
|
Cash used in investing activities |
|
|
(503,351 |
) |
|
|
(445,252 |
) |
| Cash flows from financing
activities: |
|
|
|
|
|
Proceeds from revolving line of credit and long-term
borrowings |
|
|
1,768,236 |
|
|
|
362,540 |
|
|
Payments on revolving line of credit, long-term borrowings, and
finance lease obligations |
|
|
(1,616,321 |
) |
|
|
(388,299 |
) |
|
Payment of capitalized loan costs |
|
|
(19,816 |
) |
|
|
(4,741 |
) |
|
Payment on early extinguishment of debt |
|
|
(13,780 |
) |
|
|
— |
|
|
Distribution of capital under the TSA |
|
|
(1,592 |
) |
|
|
(1,961 |
) |
|
Purchase of common stock under share repurchase program |
|
|
— |
|
|
|
(199,553 |
) |
|
Cash provided by (used in) financing activities |
|
|
116,727 |
|
|
|
(232,014 |
) |
| Effect of exchange rate changes
on cash and cash equivalents |
|
|
5,211 |
|
|
|
(7,959 |
) |
| Increase (decrease) in cash and
cash equivalents |
|
|
296,464 |
|
|
|
(15,362 |
) |
| Cash and cash equivalents,
beginning of year |
|
|
434,759 |
|
|
|
450,121 |
|
| Cash and cash equivalents, end of
year |
|
$ |
731,223 |
|
|
$ |
434,759 |
|
| Supplemental Disclosure
Information: |
|
|
|
|
|
Interest paid (net of amount capitalized) |
|
$ |
131,205 |
|
|
$ |
156,292 |
|
|
Income taxes paid |
|
|
19,749 |
|
|
|
385,585 |
|
|
Accounts payable and accrued expenses for capital expenditures for
property, plant and equipment |
|
|
85,943 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PILGRIM’S PRIDE CORPORATION
Selected Financial
Information
(Unaudited)
“EBITDA” is defined as the sum of net income
(loss) plus interest, taxes, depreciation and amortization.
“Adjusted EBITDA” is calculated by adding to EBITDA certain items
of expense and deducting from EBITDA certain items of income that
we believe are not indicative of our ongoing operating performance
consisting of: (1) foreign currency transaction losses (gains),
(2) transaction costs related to business acquisitions, (3)
costs related to litigation settlements, (4) restructuring
activities losses, (5) property insurance recoveries, and (6) net
income attributable to noncontrolling interest. EBITDA is presented
because it is used by management and we believe it is frequently
used by securities analysts, investors and other interested
parties, in addition to and not in lieu of results prepared in
conformity with accounting principles generally accepted in the
U.S. (“U.S. GAAP”), to compare the performance of companies. We
believe investors would be interested in our Adjusted EBITDA
because this is how our management analyzes EBITDA applicable to
continuing operations. The Company also believes that Adjusted
EBITDA, in combination with the Company’s financial results
calculated in accordance with U.S. GAAP, provides investors with
additional perspective regarding the impact of certain significant
items on EBITDA and facilitates a more direct comparison of its
performance with its competitors. EBITDA and Adjusted EBITDA are
not measurements of financial performance under U.S. GAAP. EBITDA
and Adjusted EBITDA have limitations as analytical tools and should
not be considered in isolation or as substitutes for an analysis of
our results as reported under U.S. GAAP. In addition, other
companies in our industry may calculate these measures differently
limiting their usefulness as a comparative measure. Because of
these limitations, EBITDA and Adjusted EBITDA should not be
considered as an alternative to net income as indicators of our
operating performance or any other measures of performance derived
in accordance with U.S. GAAP. These limitations should be
compensated for by relying primarily on our U.S. GAAP results and
using EBITDA and Adjusted EBITDA only on a supplemental basis.
|
|
|
PILGRIM'S PRIDE CORPORATION |
|
Reconciliation of Adjusted EBITDA |
|
(Unaudited) |
|
|
| |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31, 2023 |
|
December 25, 2022 |
|
December 31, 2023 |
|
December 25, 2022 |
| |
|
(In thousands) |
|
Net income (loss) |
|
$ |
134,211 |
|
|
$ |
(155,042 |
) |
|
$ |
322,317 |
|
$ |
746,538 |
| Add: |
|
|
|
|
|
|
|
|
|
Interest expense, net(a) |
|
|
54,505 |
|
|
|
37,298 |
|
|
|
166,621 |
|
|
143,644 |
|
Income tax expense |
|
|
22,417 |
|
|
|
25,256 |
|
|
|
42,905 |
|
|
278,935 |
|
Depreciation and amortization |
|
|
112,486 |
|
|
|
102,148 |
|
|
|
419,900 |
|
|
403,110 |
| EBITDA |
|
|
323,619 |
|
|
|
9,660 |
|
|
|
951,743 |
|
|
1,572,227 |
| Add: |
|
|
|
|
|
|
|
|
|
Foreign currency transaction losses (gains)(b) |
|
|
(22,892 |
) |
|
|
16,469 |
|
|
|
20,570 |
|
|
30,817 |
|
Transaction costs related to acquisitions(c) |
|
|
— |
|
|
|
(24 |
) |
|
|
— |
|
|
948 |
|
Litigation settlements(d) |
|
|
4,700 |
|
|
|
5,804 |
|
|
|
39,400 |
|
|
34,086 |
|
Restructuring activities losses(e) |
|
|
5,661 |
|
|
|
30,466 |
|
|
|
44,345 |
|
|
30,466 |
| Minus: |
|
|
|
|
|
|
|
|
|
Property insurance recoveries(f) |
|
|
2,038 |
|
|
|
(417 |
) |
|
|
21,124 |
|
|
19,580 |
|
Net income (loss) attributable to noncontrolling interest |
|
|
(442 |
) |
|
|
(66 |
) |
|
|
743 |
|
|
608 |
| Adjusted EBITDA |
|
$ |
309,492 |
|
|
$ |
62,858 |
|
|
$ |
1,034,191 |
|
$ |
1,648,356 |
(a) Interest expense, net, consists of interest
expense less interest income. (b) The Company measures the
financial statements of its Mexico reportable segment as if the
U.S. dollar were the functional currency. Accordingly, we remeasure
assets and liabilities, other than nonmonetary assets, of the
Mexico reportable segment at current exchange rates. We remeasure
nonmonetary assets using the historical exchange rate in effect on
the date of each asset’s acquisition. Currency exchange gains or
losses resulting from these remeasurements, as well as, from our
U.K. and Europe reportable segment are included in the line item
Foreign currency transaction losses (gains) in the Consolidated
Statements of Income.(c) Transaction costs related to acquisitions
includes those charges that are incurred in conjunction with
business acquisitions. (d) This represents expenses recognized in
anticipation of probable settlements in ongoing litigation.(e)
Restructuring charges is primarily related to restructuring
initiatives at multiple production facilities throughout our U.K.
and Europe reportable segment.(f) This represents property
insurance recoveries for property damage losses.
The summary unaudited consolidated income
statement data for the 12 months ended December 31, 2023 (the
LTM Period) have been calculated by summing each of the unaudited
three month periods within the audited year ended December 31,
2023.
|
PILGRIM'S PRIDE CORPORATION |
|
Reconciliation of LTM Adjusted EBITDA |
|
(Unaudited) |
|
|
| |
|
Three Months Ended |
|
LTM Ended December 31,
2023 |
| |
|
March 26, 2023 |
|
June 25, 2023 |
|
September 24, 2023 |
|
December 31, 2023 |
|
| |
(In thousands) |
|
|
|
Net income |
|
$ |
5,631 |
|
|
$ |
60,908 |
|
|
$ |
121,567 |
|
$ |
134,211 |
|
|
$ |
322,317 |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
39,062 |
|
|
|
39,524 |
|
|
|
33,530 |
|
|
54,505 |
|
|
|
166,621 |
|
Income tax expense |
|
|
(8,840 |
) |
|
|
(15,225 |
) |
|
|
44,553 |
|
|
22,417 |
|
|
|
42,905 |
|
Depreciation and amortization |
|
|
98,257 |
|
|
|
104,857 |
|
|
|
104,300 |
|
|
112,486 |
|
|
|
419,900 |
| EBITDA |
|
|
134,110 |
|
|
|
190,064 |
|
|
|
303,950 |
|
|
323,619 |
|
|
|
951,743 |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction losses (gains) |
|
|
18,143 |
|
|
|
16,395 |
|
|
|
8,924 |
|
|
(22,892 |
) |
|
|
20,570 |
|
Litigation settlements |
|
|
11,200 |
|
|
|
13,000 |
|
|
|
10,500 |
|
|
4,700 |
|
|
|
39,400 |
|
Restructuring activities losses |
|
|
8,026 |
|
|
|
29,718 |
|
|
|
940 |
|
|
5,661 |
|
|
|
44,345 |
| Minus: |
|
|
|
|
|
|
|
|
|
|
|
Property insurance recoveries |
|
|
19,086 |
|
|
|
— |
|
|
|
— |
|
|
2,038 |
|
|
|
21,124 |
|
Net income (loss) attributable to noncontrolling interest |
|
|
444 |
|
|
|
452 |
|
|
|
289 |
|
|
(442 |
) |
|
|
743 |
| Adjusted EBITDA |
|
$ |
151,949 |
|
|
$ |
248,725 |
|
|
$ |
324,025 |
|
$ |
309,492 |
|
|
$ |
1,034,191 |
| |
EBITDA margins have been calculated by taking the relevant
unaudited EBITDA figures, then dividing by net sales for the
applicable period. EBITDA margins are presented because they are
used by management and we believe they are frequently used by
securities analysts, investors and other interested parties, as a
supplement to our results prepared in accordance with U.S. GAAP, to
compare the performance of companies.
|
PILGRIM'S PRIDE CORPORATION |
|
Reconciliation of EBITDA Margin |
|
(Unaudited) |
|
|
| |
|
Three Months Ended |
|
Year Ended |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31,2023 |
|
December 25,2022 |
|
December 31, 2023 |
|
December 25, 2022 |
|
December 31, 2023 |
|
December 25, 2022 |
|
December 31, 2023 |
|
December 25, 2022 |
| |
(In thousands, except percent of net sales) |
|
Net income (loss) |
|
$ |
134,211 |
|
|
$ |
(155,042 |
) |
|
$ |
322,317 |
|
$ |
746,538 |
|
|
2.96 |
% |
|
|
(3.76 |
)% |
|
|
1.86 |
% |
|
|
4.27 |
% |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
54,505 |
|
|
|
37,298 |
|
|
|
166,621 |
|
|
143,644 |
|
|
1.20 |
% |
|
|
0.90 |
% |
|
|
0.96 |
% |
|
|
0.82 |
% |
|
Income tax expense |
|
|
22,417 |
|
|
|
25,256 |
|
|
|
42,905 |
|
|
278,935 |
|
|
0.50 |
% |
|
|
0.61 |
% |
|
|
0.25 |
% |
|
|
1.60 |
% |
|
Depreciation and amortization |
|
|
112,486 |
|
|
|
102,148 |
|
|
|
419,900 |
|
|
403,110 |
|
|
2.48 |
% |
|
|
2.47 |
% |
|
|
2.42 |
% |
|
|
2.31 |
% |
| EBITDA |
|
|
323,619 |
|
|
|
9,660 |
|
|
|
951,743 |
|
|
1,572,227 |
|
|
7.14 |
% |
|
|
0.22 |
% |
|
|
5.48 |
% |
|
|
9.00 |
% |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction losses (gains) |
|
|
(22,892 |
) |
|
|
16,469 |
|
|
|
20,570 |
|
|
30,817 |
|
|
(0.50 |
)% |
|
|
0.41 |
% |
|
|
0.13 |
% |
|
|
0.18 |
% |
|
Transaction costs related to acquisitions |
|
|
— |
|
|
|
(24 |
) |
|
|
— |
|
|
948 |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.01 |
% |
|
Litigation settlements |
|
|
4,700 |
|
|
|
5,804 |
|
|
|
39,400 |
|
|
34,086 |
|
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.21 |
% |
|
|
0.19 |
% |
|
Restructuring activities losses |
|
|
5,661 |
|
|
|
30,466 |
|
|
|
44,345 |
|
|
30,466 |
|
|
0.13 |
% |
|
|
0.74 |
% |
|
|
0.26 |
% |
|
|
0.17 |
% |
| Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property insurance recoveries |
|
|
2,038 |
|
|
|
(417 |
) |
|
|
21,124 |
|
|
19,580 |
|
|
0.05 |
% |
|
|
(0.01 |
)% |
|
|
0.12 |
% |
|
|
0.11 |
% |
|
Net income (loss) attributable to noncontrolling interest |
|
|
(442 |
) |
|
|
(66 |
) |
|
|
743 |
|
|
608 |
|
|
(0.01 |
)% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
| Adjusted EBITDA |
|
$ |
309,492 |
|
|
$ |
62,858 |
|
|
$ |
1,034,191 |
|
$ |
1,648,356 |
|
|
6.83 |
% |
|
|
1.52 |
% |
|
|
5.96 |
% |
|
|
9.44 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
4,528,302 |
|
|
$ |
4,127,365 |
|
|
$ |
17,362,217 |
|
$ |
17,468,377 |
|
$ |
4,528,302 |
|
$ |
4,127,365 |
|
$ |
17,362,217 |
|
$ |
17,468,377 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by segment figures s are presented because they
are used by management and we believe they are frequently used by
securities analysts, investors and other interested parties, as a
supplement to our results prepared in accordance with U.S. GAAP, to
compare the performance of companies.
|
PILGRIM'S PRIDE CORPORATION |
|
Reconciliation of Adjusted EBITDA |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Three Months Ended |
| |
December 31, 2023 |
|
December 25, 2022 |
| |
U.S. |
|
U.K. & Europe |
|
Mexico |
|
Total |
|
U.S. |
|
U.K. & Europe |
|
Mexico |
|
Total |
| |
(In thousands) |
|
(In thousands) |
|
Net income (loss) |
$ |
76,321 |
|
|
$ |
46,181 |
|
|
$ |
11,709 |
|
|
$ |
134,211 |
|
|
$ |
(86,893 |
) |
|
$ |
(22,193 |
) |
|
$ |
(45,956 |
) |
|
$ |
(155,042 |
) |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net(a) |
|
66,779 |
|
|
|
(1,458 |
) |
|
|
(10,816 |
) |
|
|
54,505 |
|
|
|
38,094 |
|
|
|
633 |
|
|
|
(1,429 |
) |
|
|
37,298 |
|
|
Income tax expense (benefit) |
|
4,047 |
|
|
|
18,635 |
|
|
|
(265 |
) |
|
|
22,417 |
|
|
|
(22,097 |
) |
|
|
20,673 |
|
|
|
26,680 |
|
|
|
25,256 |
|
|
Depreciation and amortization |
|
68,004 |
|
|
|
38,707 |
|
|
|
5,775 |
|
|
|
112,486 |
|
|
|
63,370 |
|
|
|
32,899 |
|
|
|
5,879 |
|
|
|
102,148 |
|
| EBITDA |
|
215,151 |
|
|
|
102,065 |
|
|
|
6,403 |
|
|
|
323,619 |
|
|
|
(7,526 |
) |
|
|
32,012 |
|
|
|
(14,826 |
) |
|
|
9,660 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction losses (gains)(b) |
|
(19,594 |
) |
|
|
(3,355 |
) |
|
|
57 |
|
|
|
(22,892 |
) |
|
|
17,060 |
|
|
|
442 |
|
|
|
(1,033 |
) |
|
|
16,469 |
|
|
Transaction costs related to acquisitions(c) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24 |
) |
|
|
— |
|
|
|
(24 |
) |
|
Litigation settlements(d) |
|
4,700 |
|
|
|
— |
|
|
|
— |
|
|
|
4,700 |
|
|
|
5,804 |
|
|
|
— |
|
|
|
— |
|
|
|
5,804 |
|
|
Restructuring activities(e) |
|
— |
|
|
|
5,661 |
|
|
|
— |
|
|
|
5,661 |
|
|
|
— |
|
|
|
30,466 |
|
|
|
— |
|
|
|
30,466 |
|
| Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property insurance recoveries(f) |
|
— |
|
|
|
1,921 |
|
|
|
117 |
|
|
|
2,038 |
|
|
|
(417 |
) |
|
|
— |
|
|
|
— |
|
|
|
(417 |
) |
|
Net income attributable to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
(442 |
) |
|
|
(442 |
) |
|
|
— |
|
|
|
— |
|
|
|
(66 |
) |
|
|
(66 |
) |
| Adjusted EBITDA |
$ |
200,257 |
|
|
$ |
102,450 |
|
|
$ |
6,785 |
|
|
$ |
309,492 |
|
|
$ |
15,755 |
|
|
$ |
62,896 |
|
|
$ |
(15,793 |
) |
|
$ |
62,858 |
|
(a) Interest expense, net, consists of interest
expense less interest income. (b) The Company measures the
financial statements of its Mexico reportable segment as if the
U.S. dollar were the functional currency. Accordingly, we remeasure
assets and liabilities, other than nonmonetary assets, of the
Mexico reportable segment at current exchange rates. We remeasure
nonmonetary assets using the historical exchange rate in effect on
the date of each asset’s acquisition. Currency exchange gains or
losses resulting from these remeasurements, as well as, from our
U.K. and Europe reportable segment are included in the line item
Foreign currency transaction losses (gains) in the Consolidated
Statements of Income.(c) Transaction costs related to acquisitions
includes those charges that are incurred in conjunction with
business acquisitions. (d) This represents expenses recognized in
anticipation of probable settlements in ongoing litigation.(e)
Restructuring charges is primarily related to restructuring
initiatives at multiple production facilities throughout our U.K.
and Europe reportable segment.(f) This represents property
insurance recoveries for property damage losses.
|
|
|
PILGRIM'S PRIDE CORPORATION |
|
Reconciliation of Adjusted EBITDA |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Year Ended |
|
Year Ended |
| |
December 31, 2023 |
|
December 25, 2022 |
| |
U.S. |
|
U.K. & Europe |
|
Mexico |
|
Total |
|
U.S. |
|
U.K. & Europe |
|
Mexico |
|
Total |
| |
(In thousands) |
|
(In thousands) |
|
Net income (loss) |
$ |
32,520 |
|
|
$ |
114,666 |
|
|
$ |
175,131 |
|
|
$ |
322,317 |
|
$ |
706,704 |
|
$ |
(3,642 |
) |
|
$ |
43,476 |
|
|
$ |
746,538 |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net(a) |
|
194,013 |
|
|
|
(2,928 |
) |
|
|
(24,464 |
) |
|
|
166,621 |
|
|
143,941 |
|
|
2,126 |
|
|
|
(2,423 |
) |
|
|
143,644 |
|
Income tax expense (benefit) |
|
(5,848 |
) |
|
|
23,378 |
|
|
|
25,375 |
|
|
|
42,905 |
|
|
220,245 |
|
|
8,290 |
|
|
|
50,400 |
|
|
|
278,935 |
|
Depreciation and amortization |
|
255,052 |
|
|
|
142,190 |
|
|
|
22,658 |
|
|
|
419,900 |
|
|
244,617 |
|
|
134,374 |
|
|
|
24,119 |
|
|
|
403,110 |
| EBITDA |
|
475,737 |
|
|
|
277,306 |
|
|
|
198,700 |
|
|
|
951,743 |
|
|
1,315,507 |
|
|
141,148 |
|
|
|
115,572 |
|
|
|
1,572,227 |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction losses (gains)(b) |
|
35,433 |
|
|
|
(2,520 |
) |
|
|
(12,343 |
) |
|
|
20,570 |
|
|
35,702 |
|
|
(3,008 |
) |
|
|
(1,877 |
) |
|
|
30,817 |
|
Transaction costs related to acquisitions(c) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
847 |
|
|
101 |
|
|
|
— |
|
|
|
948 |
|
Litigation settlements(d) |
|
39,400 |
|
|
|
— |
|
|
|
— |
|
|
|
39,400 |
|
|
34,086 |
|
|
— |
|
|
|
— |
|
|
|
34,086 |
|
Restructuring activities losses(e) |
|
— |
|
|
|
44,345 |
|
|
|
— |
|
|
|
44,345 |
|
|
— |
|
|
30,466 |
|
|
|
— |
|
|
|
30,466 |
| Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property insurance recoveries(f) |
|
19,086 |
|
|
|
1,921 |
|
|
|
117 |
|
|
|
21,124 |
|
|
19,580 |
|
|
— |
|
|
|
— |
|
|
|
19,580 |
|
Net income attributable to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
743 |
|
|
|
743 |
|
|
— |
|
|
— |
|
|
|
608 |
|
|
|
608 |
| Adjusted EBITDA |
$ |
531,484 |
|
|
$ |
317,210 |
|
|
$ |
185,497 |
|
|
$ |
1,034,191 |
|
$ |
1,366,562 |
|
$ |
168,707 |
|
|
$ |
113,087 |
|
|
$ |
1,648,356 |
(a) Interest expense, net, consists of interest
expense less interest income. (b) The Company measures the
financial statements of its Mexico reportable segment as if the
U.S. dollar were the functional currency. Accordingly, we remeasure
assets and liabilities, other than nonmonetary assets, of the
Mexico reportable segment at current exchange rates. We remeasure
nonmonetary assets using the historical exchange rate in effect on
the date of each asset’s acquisition. Currency exchange gains or
losses resulting from these remeasurements, as well as, from our
U.K. and Europe reportable segment are included in the line item
Foreign currency transaction losses (gains) in the Consolidated
Statements of Income.(c) Transaction costs related to acquisitions
includes those charges that are incurred in conjunction with
business acquisitions. (d) This represents expenses recognized in
anticipation of probable settlements in ongoing litigation.(e)
Restructuring charges is primarily related to restructuring
initiatives at multiple production facilities throughout our U.K.
and Europe reportable segment.(f) This represents property
insurance recoveries for the property damage losses.
Adjusted Operating Income is calculated by
adding to Operating Income certain items of expense and deducting
from Operating Income certain items of income. Management believes
that presentation of Adjusted Operating Income provides useful
supplemental information about our operating performance and
enables comparison of our performance between periods because
certain costs shown below are not indicative of our current
operating performance. A reconciliation of GAAP operating income to
adjusted operating income as follows:
|
PILGRIM'S PRIDE CORPORATION |
|
Reconciliation of Adjusted Operating Income |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Year Ended |
| |
December 31, 2023 |
|
December 25, 2022 |
|
December 31, 2023 |
|
December 25, 2022 |
| |
(In thousands) |
|
GAAP operating income, U.S. operations |
$ |
128,353 |
|
|
$ |
(52,796 |
) |
|
$ |
238,894 |
|
|
$ |
1,094,025 |
|
| Litigation settlements(a) |
|
4,700 |
|
|
|
5,804 |
|
|
|
39,400 |
|
|
|
34,086 |
|
| Transaction costs related to
acquisitions(b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
847 |
|
| Adjusted operating income,
U.S. operations |
$ |
133,053 |
|
|
$ |
(46,992 |
) |
|
$ |
278,294 |
|
|
$ |
1,128,958 |
|
| |
|
|
|
|
|
|
|
| Adjusted operating income
margin, U.S. operations |
|
5.0 |
% |
|
|
(1.9 |
)% |
|
|
2.8 |
% |
|
|
10.5 |
% |
| |
|
|
|
|
|
|
|
| GAAP operating income, U.K.
and Europe operations |
$ |
57,568 |
|
|
$ |
(1,340 |
) |
|
$ |
128,151 |
|
|
$ |
(934 |
) |
| Restructuring activities
losses |
|
5,661 |
|
|
|
30,466 |
|
|
|
44,345 |
|
|
|
30,466 |
|
| Adjusted operating income,
U.K. and Europe operations |
$ |
63,229 |
|
|
$ |
29,126 |
|
|
$ |
172,496 |
|
|
$ |
29,532 |
|
| |
|
|
|
|
|
|
|
| Adjusted operating income
margin, U.K. and Europe operations |
|
4.7 |
% |
|
|
2.4 |
% |
|
|
3.3 |
% |
|
|
0.6 |
% |
| |
|
|
|
|
|
|
|
| GAAP operating income, Mexico
operations |
$ |
(1,621 |
) |
|
$ |
(23,400 |
) |
|
$ |
155,455 |
|
|
$ |
83,450 |
|
| No adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Adjusted operating income,
Mexico operations |
$ |
(1,621 |
) |
|
$ |
(23,400 |
) |
|
$ |
155,455 |
|
|
$ |
83,450 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted operating income
margin, Mexico operations |
|
(0.3 |
)% |
|
|
(5.1 |
)% |
|
|
7.3 |
% |
|
|
4.5 |
% |
(a) This represents expenses recognized in
anticipation of probable settlements in ongoing litigation. (b)
These costs represent charges incurred related to the acquisition
of Pilgrim's Food Masters (formerly, Kerry Consumer Foods' Meats
and Meals businesses).
Adjusted Operating Income Margin for each of our
reportable segments is calculated by dividing Adjusted operating
income by Net Sales. Management believes that presentation of
Adjusted Operating Income Margin provides useful supplemental
information about our operating performance and enables comparison
of our performance between periods because certain costs shown
below are not indicative of our current operating performance. A
reconciliation of GAAP operating income margin for each of our
reportable segments to adjusted operating income margin for each of
our reportable segments is as follows:
|
PILGRIM'S PRIDE CORPORATION |
|
Reconciliation of GAAP Operating Income Margin to Adjusted
Operating Income Margin |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Year Ended |
| |
December 31, 2023 |
|
December 25, 2022 |
|
December 31, 2023 |
|
December 25, 2022 |
| |
(In percent) |
|
GAAP operating income margin, U.S. operations |
4.8 |
% |
|
(2.2 |
)% |
|
2.4 |
% |
|
10.2 |
% |
| Litigation settlements |
0.2 |
% |
|
0.3 |
% |
|
0.4 |
% |
|
0.3 |
% |
| Transaction costs related to
acquisitions |
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
| Adjusted operating income
margin, U.S. operations |
5.0 |
% |
|
(1.9 |
)% |
|
2.8 |
% |
|
10.5 |
% |
| |
|
|
|
|
|
|
|
| GAAP operating income margin,
U.K. and Europe operations |
4.3 |
% |
|
(0.1 |
)% |
|
2.5 |
% |
|
— |
% |
| Restructuring activities
losses |
0.4 |
% |
|
2.5 |
% |
|
0.8 |
% |
|
0.6 |
% |
| Adjusted operating income
margin, U.K. and Europe operations |
4.7 |
% |
|
2.4 |
% |
|
3.3 |
% |
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
| GAAP operating income margin,
Mexico operations |
(0.3 |
)% |
|
(5.1 |
)% |
|
7.3 |
% |
|
4.5 |
% |
| No adjustments |
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
| Adjusted operating income
margin, Mexico operations |
(0.3 |
)% |
|
(5.1 |
)% |
|
7.3 |
% |
|
4.5 |
% |
|
|
Adjusted net income attributable to Pilgrim's
Pride Corporation ("Pilgrim's") is calculated by adding to net
income attributable to Pilgrim's certain items of expense and
deducting from net income attributable to Pilgrim's certain items
of income, as shown below in the table. Adjusted net income
attributable to Pilgrim’s Pride Corporation per common diluted
share is presented because it is used by management, and we believe
it is frequently used by securities analysts, investors and other
interested parties, in addition to and not in lieu of results
prepared in conformity with U.S. GAAP, to compare the performance
of companies. Management also believe that this non-U.S. GAAP
financial measure, in combination with our financial results
calculated in accordance with U.S. GAAP, provides investors with
additional perspective regarding the impact of such charges on net
income attributable to Pilgrim’s Pride Corporation per common
diluted share. Adjusted net income attributable to Pilgrim’s Pride
Corporation per common diluted share is not a measurement of
financial performance under U.S. GAAP, has limitations as an
analytical tool and should not be considered in isolation or as a
substitute for an analysis of our results as reported under U.S.
GAAP. Management believes that presentation of adjusted net income
attributable to Pilgrim’s provides useful supplemental information
about our operating performance and enables comparison of our
performance between periods because certain costs shown below are
not indicative of our current operating performance. A
reconciliation of net income attributable to Pilgrim’s Pride
Corporation per common diluted share to adjusted net income
attributable to Pilgrim’s Pride Corporation per common diluted
share is as follows:
|
PILGRIM'S PRIDE CORPORATION |
|
Reconciliation of Adjusted Net Income |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Year Ended |
| |
December 31,2023 |
|
December 25,2022 |
|
December 31,2023 |
|
December 25,2022 |
| |
(In thousands, except per share data) |
|
Net income (loss) attributable to Pilgrim's |
$ |
134,653 |
|
|
$ |
(154,976 |
) |
|
$ |
321,574 |
|
|
$ |
745,930 |
|
| Add: |
|
|
|
|
|
|
|
|
Foreign currency transaction losses (gains) |
|
(22,892 |
) |
|
|
16,469 |
|
|
|
20,570 |
|
|
|
30,817 |
|
|
Transaction costs related to acquisitions |
|
— |
|
|
|
(24 |
) |
|
|
— |
|
|
|
948 |
|
|
Litigation settlements |
|
4,700 |
|
|
|
5,804 |
|
|
|
39,400 |
|
|
|
34,086 |
|
|
Restructuring activities losses |
|
5,661 |
|
|
|
30,466 |
|
|
|
44,345 |
|
|
|
30,466 |
|
|
Loss on early extinguishment of debt recognized as a component
of interest expense(a) |
|
20,694 |
|
|
|
— |
|
|
|
20,694 |
|
|
|
— |
|
| Minus: |
|
|
|
|
|
|
|
|
Property insurance recoveries |
|
2,038 |
|
|
|
— |
|
|
|
21,124 |
|
|
|
19,580 |
|
| Adjusted net income (loss)
attributable to Pilgrim's before tax impact |
|
140,778 |
|
|
|
(102,261 |
) |
|
|
425,459 |
|
|
|
822,667 |
|
|
Net tax impact of adjustments(b) |
|
(1,483 |
) |
|
|
(12,757 |
) |
|
|
(25,140 |
) |
|
|
(19,115 |
) |
| Adjusted net income (loss)
attributable to Pilgrim's |
$ |
139,295 |
|
|
$ |
(115,018 |
) |
|
$ |
400,319 |
|
|
$ |
803,552 |
|
| Weighted average diluted
shares of common stock outstanding |
|
237,465 |
|
|
|
236,469 |
|
|
|
237,297 |
|
|
|
240,394 |
|
| Adjusted net income
attributable to Pilgrim's per common diluted share |
$ |
0.59 |
|
|
$ |
(0.49 |
) |
|
$ |
1.69 |
|
|
$ |
3.34 |
|
(a) The loss on early extinguishment of debt recognized as a
component of interest expense was due to the repurchase of the
Senior Notes due 2027.(b) Net tax impact of adjustments represents
the tax impact of all adjustments shown above.
Adjusted EPS is calculated by dividing the
adjusted net income attributable to Pilgrim's stockholders by the
weighted average number of diluted shares. Management believes that
Adjusted EPS provides useful supplemental information about our
operating performance and enables comparison of our performance
between periods because certain costs shown below are not
indicative of our current operating performance. A reconciliation
of U.S. GAAP to non-U.S. GAAP financial measures is as follows:
|
PILGRIM'S PRIDE CORPORATION |
|
Reconciliation of GAAP EPS to Adjusted EPS |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Year Ended |
| |
December 31, 2023 |
|
December 25, 2022 |
|
December 31, 2023 |
|
December 25, 2022 |
| |
(In thousands, except per share data) |
|
U.S. GAAP EPS |
$ |
0.57 |
|
|
$ |
(0.66 |
) |
|
$ |
1.36 |
|
|
$ |
3.10 |
|
| Add: |
|
|
|
|
|
|
|
|
Foreign currency transaction losses (gains) |
|
(0.10 |
) |
|
|
0.08 |
|
|
|
0.09 |
|
|
|
0.13 |
|
|
Transaction costs related to acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Litigation settlements |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.16 |
|
|
|
0.14 |
|
|
Restructuring activities losses |
|
0.02 |
|
|
|
0.13 |
|
|
|
0.19 |
|
|
|
0.13 |
|
|
Loss on early extinguishment of debt recognized as a component of
interest expense |
|
0.09 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
| Minus: |
|
|
|
|
|
|
|
|
Property insurance recoveries |
|
0.01 |
|
|
|
— |
|
|
|
0.09 |
|
|
|
0.08 |
|
| Adjusted EPS attributable to
Pilgrim's before tax impact |
|
0.59 |
|
|
|
(0.43 |
) |
|
|
1.79 |
|
|
|
3.42 |
|
| Net tax impact of
adjustments(a) |
|
— |
|
|
|
(0.06 |
) |
|
|
(0.10 |
) |
|
|
(0.08 |
) |
| Adjusted EPS |
$ |
0.59 |
|
|
$ |
(0.49 |
) |
|
$ |
1.69 |
|
|
$ |
3.34 |
|
| |
|
|
|
|
|
|
|
| Weighted average diluted
shares of common stock outstanding |
|
237,465 |
|
|
|
236,469 |
|
|
|
237,297 |
|
|
|
240,394 |
|
(a) Net tax impact of adjustments represents the tax
impact of all adjustments shown above.
|
|
|
PILGRIM'S PRIDE CORPORATION |
|
Supplementary Geographic Data |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31, 2023 |
|
December 25, 2022 |
|
December 31, 2023 |
|
December 25, 2022 |
| |
|
(In thousands) |
| Sources of net sales by
country of origin: |
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
2,660,649 |
|
|
$ |
2,430,343 |
|
|
$ |
10,027,742 |
|
|
$ |
10,748,350 |
|
|
Europe |
|
|
1,341,103 |
|
|
|
1,234,609 |
|
|
|
5,203,322 |
|
|
|
4,874,738 |
|
|
Mexico |
|
|
526,550 |
|
|
|
462,413 |
|
|
|
2,131,153 |
|
|
|
1,845,289 |
|
|
Total net sales |
|
$ |
4,528,302 |
|
|
$ |
4,127,365 |
|
|
$ |
17,362,217 |
|
|
$ |
17,468,377 |
|
| |
|
|
|
|
|
|
|
|
| Sources of cost of sales by
country of origin: |
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
2,461,255 |
|
|
$ |
2,406,386 |
|
|
$ |
9,505,258 |
|
|
$ |
9,312,445 |
|
|
Europe |
|
|
1,233,572 |
|
|
|
1,154,440 |
|
|
|
4,828,623 |
|
|
|
4,634,066 |
|
|
Mexico |
|
|
512,427 |
|
|
|
470,769 |
|
|
|
1,909,721 |
|
|
|
1,710,117 |
|
|
Elimination |
|
|
1 |
|
|
|
(12 |
) |
|
|
214 |
|
|
|
(54 |
) |
|
Total cost of sales |
|
$ |
4,207,255 |
|
|
$ |
4,031,583 |
|
|
$ |
16,243,816 |
|
|
$ |
15,656,574 |
|
| |
|
|
|
|
|
|
|
|
| Sources of gross profit by
country of origin: |
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
199,394 |
|
|
$ |
23,957 |
|
|
$ |
522,484 |
|
|
$ |
1,435,905 |
|
|
Europe |
|
|
107,531 |
|
|
|
80,169 |
|
|
|
374,699 |
|
|
|
240,672 |
|
|
Mexico |
|
|
14,123 |
|
|
|
(8,356 |
) |
|
|
221,432 |
|
|
|
135,172 |
|
|
Elimination |
|
|
(1 |
) |
|
|
12 |
|
|
|
(214 |
) |
|
|
54 |
|
|
Total gross profit |
|
$ |
321,047 |
|
|
$ |
95,782 |
|
|
$ |
1,118,401 |
|
|
$ |
1,811,803 |
|
| |
|
|
|
|
|
|
|
|
| Sources of operating income
(loss) by country of origin: |
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
128,353 |
|
|
$ |
(52,796 |
) |
|
$ |
238,894 |
|
|
$ |
1,094,025 |
|
|
Europe |
|
|
57,568 |
|
|
|
(1,340 |
) |
|
|
128,151 |
|
|
|
(934 |
) |
|
Mexico |
|
|
(1,621 |
) |
|
|
(23,400 |
) |
|
|
155,455 |
|
|
|
83,450 |
|
|
Elimination |
|
|
(1 |
) |
|
|
12 |
|
|
|
(214 |
) |
|
|
54 |
|
|
Total operating income (loss) |
|
$ |
184,299 |
|
|
$ |
(77,524 |
) |
|
$ |
522,286 |
|
|
$ |
1,176,595 |
|
Pilgrims Pride (NASDAQ:PPC)
過去 株価チャート
から 11 2024 まで 12 2024
Pilgrims Pride (NASDAQ:PPC)
過去 株価チャート
から 12 2023 まで 12 2024
