Pilgrim’s Pride Reports Fourth Quarter and Year-End 2024 Results; Fabio Sandri Comments

Pilgrim’s Pride Corporation, one of the world's leading food companies, reports its fourth quarter and year-end 2024 financial results.

2024 Highlights

• Net Sales of $17.9 billion.
• Consolidated GAAP Operating Income margin of 8.4%.
• GAAP Net Income of $1.1 billion and GAAP EPS of $4.57. Adjusted Net Income of $1.3 billion, or Adjusted EPS of $5.42.
• Adjusted EBITDA of $2.2 billion, or a 12.4% margin, with Adjusted EBITDA margins of 14.7% in the U.S., 7.9% in Europe, and 11.8% in Mexico.
• The U.S. Fresh portfolio continued to benefit from strong chicken demand and execution of the company’s strategies. Pilgrim’s continued to progress in operational excellence, while its diversified portfolio across bird sizes and differentiated offerings captured benefits from above average commodity values and generated incremental distribution with key customers.
• U.S. Prepared Foods continued to provide profitable growth as branded offerings grew nearly 25% compared to last year. Just Bare® and Pilgrim’s® remain key drivers, with innovative and well-recognized quality capturing market share. Progress in commerce also continues, as digitally influenced sales grew 30% compared to prior year.
• Pilgrim’s Europe business continues its positive momentum, with manufacturing footprint optimization, back-office integration of support activities, and enhanced mix. Richmond® and Fridge Raiders® continue to increase volume share in their categories, and innovation efforts in partnership with key customers continue to be recognized by the market with multiple industry awards.
• Mexico margins improved from last year given extended strength in the commodity markets and increased distribution with key customers across retail and foodservice. Diversification through brands remained on track as the portfolio grew over 7%.
• Pilgrim’s sustainability efforts continue to drive reductions in scope 1 and 2 emissions intensity across all regions compared to 2023. External agencies continued to recognize progress in environmental performance as scores improved compared to last year.
• Strong liquidity position and net leverage ratio of 0.52 Adjusted EBITDA given healthy market conditions, judicious working capital management, and consistent execution of the company’s strategies provided the foundation to drive profitable growth for the business.

Fourth Quarter

• Net Sales of $4.4 billion.
• Consolidated GAAP Operating Income margin of 7.0%.
• GAAP Net Income of $235.9 million and GAAP EPS of $0.99. Adjusted Net Income of $321.7 million and Adjusted EPS of $1.35.
• Adjusted EBITDA of $525.7 million, or a 12.0% margin, with Adjusted EBITDA margins of 14.2% in the U.S., 9.3% in Europe, and 7.4% in Mexico.
• Pilgrim’s U.S. portfolio benefited from relatively strong seasonal commodity cut out values for Big Bird, increased demand from key customers in Case Ready and Small Bird, and continued progress in mix and cost through operational excellence efforts.
• U.S. Prepared Foods accelerated growth through incremental distribution of its portfolio across retail and foodservice. Diversification through brands continues to progress as net sales of Just Bare® and Pilgrim’s® grew 35% and 16%, respectively, compared to prior year.
• Europe increased margins through continued operational excellence in manufacturing, and growth in foodservice and branded offerings. Fridge Raiders® and Rollover® both grew faster than category averages.
• Mexico realized strong performance as commodity values strengthened throughout the quarter, fresh branded products grew nearly 10%, and key customer demand experienced positive growth. The Merida complex ramped up production during the quarter, and the company continues to invest in additional capacity in the region.
• Pilgrim’s continues to cultivate its sustainability infrastructure as the company partnered with GreenGasUSA to complete a project to leverage methane capture capabilities at its Sumter, S.C., complex and generate renewable natural gas.

“While we experienced a positive market environment with lower input costs and strong chicken demand in 2024, we elevated our performance across all regions through a continued focus on controlling what we can control,” said Fabio Sandri, Pilgrim’s President and CEO, in a recent press release. “As such, we improved efficiencies through operational excellence, expanded relationships with key customers, and drove growth in our value-added portfolio.”

In the fourth quarter, the U.S. continued to execute its strategies, and demand for chicken remained robust across both retail and foodservice. Big Bird benefited from production improvements and relatively strong seasonal market pricing, whereas Case Ready and Small Bird grew from increased consumer demand in retail, QSR and deli. Prepared Foods continued to cultivate sales momentum through additional distribution of its value-added portfolio.

“Our performance is a reflection of our diversified portfolio, our ability to work with key customers to unlock consumer value through differentiated offerings, and our continued emphasis on quality and service,” Sandri said.

Europe improved by over 100 basis points compared to same period last year through continued improvements in product mix and manufacturing productivity. These efforts were amplified by further diversification through brands and increased consumer acceptance of recently launched innovation.

“Europe continued to make strong progress in its profitability journey. Equally important, the team continues to cultivate the foundation for profitable growth through innovation. In partnership with our key customers, we launched new and innovative products that are growing ahead of the categories and helping our key customers to differentiate in the marketplace,” said Sandri.

In Mexico, commodity markets experienced counter seasonal movements and continually strengthened throughout the quarter. Key customers in fresh continued to play a critical role as sales grew nearly 10% compared to the prior year. Diversification through value added gain momentum through incremental distribution across retail, club and foodservice.

“Given Mexico’s performance and market potential, we are continuing to invest in capacity expansion and operational excellence to further cultivate profitable growth with key customers. Based on these efforts, we can simultaneously reduce our operational risk, further diversify our portfolio, and unlock value with our key customers,” said Sandri.

To read the full report, click here.