Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q3 2024 Earnings Presentation
29 slides from Pilgrim's Pride's earnings presentation, Oct 31, 2024
Slide 1: Financial Results for Third Quarter Ended September 29th, 2024
Financial Results for Third Quarter Ended September 29th, 2024 Pilgrim’s Pride Corporation (NASDAQ: PPC)
Slide 2: Cautionary Notes and Forward-Looking Statements
Cautionary Notes and 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
Slide 3: Third Quarter 2024 Financial Review
Third Quarter 2024 Financial Review ▪ U.S.: Year-over-year (YoY) increase in commodity market pricing and moderating input costs positively impacted Big Bird business; along with growth with Main Indicators ($MM) Q3 2024 Q3 2023 Key Customers in Case Ready and Small Bird driving operating income imp
Slide 4: Pullet Placements Increased 2.0% Y/Y in Q3-2024
Pullet Placements Increased 2.0% Y/Y in Q3-2024 Intended Pullet Placements 12,000 10,000 8,000 6,000 Thousand Head 4,000 2,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 2024 5 Yr. Avg. ▪ Trailing 8-month placements increased 1.7% vs. year ago. 4 Source: USDA
Slide 5: Broiler Layer Flock Decreased Y/Y In Q3-24; Eggs/100 Increased
Broiler Layer Flock Decreased Y/Y In Q3-24; Eggs/100 Increased Y/Y In Q3-24 Broiler Type Hatching Layers Eggs/100 65,000 2,000 1,950 64,000 1,900 63,000 1,850 1,800 Head (000) 62,000 Eggs 1,750 61,000 1,700 1,650 60,000 1,600 59,000 1,550 58,000 1,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 6: Egg Sets Increased 3.7% YoY in Q3-24; Hatchability Below Q3-23
Egg Sets Increased 3.7% YoY in Q3-24; Hatchability 0.5% Below Q3-23 Levels Chicken Eggs Set by Week - USDA Chicken Hatchability by Week - USDA 255,000 82% 250,000 81% 245,000 80% 240,000 Hatchability (%) 79% Eggs (000) 235,000 78% 230,000 77% 225,000 76% 220,000 215,000 75% 1 3 5 7 9 11 13 15 17 19
Slide 7: Broiler Placements Increased 2.6% Above Year-Ago Levels in Q3-24
Broiler Placements Increased 2.6% Above Year-Ago Levels in Q3-24 Chicken Placements by Week - USDA 195,000 190,000 185,000 180,000 Heads (000) 175,000 170,000 165,000 160,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
Slide 8: Reduced Head Counts in Small Bird Debone Segment in Q3-24
Reduced Head Counts in Small Bird Debone Segment in Q3-24 Head Processed by Size 100% 90% 21.4% 20.9% 21.2% 21.7% 23.3% 24.1% 25.7% 25.4% 26.4% 26.9% 80% 70% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 60% 28.4% 29.7% 27.6% 27.4% 50% 32.2% 31.2% 40% 30.4% 30.2% 28.7% 27.4% 26.2% 28.4% 30% 27.6% 29.4% 20% 25
Slide 9: Industry Cold Storage Supplies in Q3-24 Trended Below Year Ago
Industry Cold Storage Supplies in Q3-24 Trended Below Year Ago and 5-Year Average Total Chicken Inventories 950,000 900,000 850,000 800,000 750,000 LBS (000) 700,000 650,000 600,000 550,000 500,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 2024 5 Yr. Avg. • Total Inventory at the end Sep-
Slide 10: Jumbo Cutout Pricing Trended Above YA and 5-year Average in Q3-24
Jumbo Cutout Pricing Trended Above YA and 5-year Average in Q3-24 Jumbo Cutout 170 150 130 Cents/Lb 110 90 70 50 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 5 Year Range 5 Yr. Avg. 2022 2023 2024 Source: PPC, EMI 10
Slide 11: BSB and Tenders Trended Seasonally and Above YA in Q3-24
BSB and Tenders Trended Seasonally and Above YA in Q3-24; LQs Stable at the High Levels; Wings Well Above 5-Year Average USDA Boneless/Skinless Breast USDA Tenders 375.00 375.00 325.00 325.00 275.00 275.00 Cents/Lb Cents/Lb 225.00 225.00 175.00 175.00 125.00 125.00 75.00 75.00 1 3 5 7 9 11 13 15 17
Slide 12: WOG Pricing Trended Down But Above Year Ago in Q3-24
WOG Pricing Trended Down But Above Year Ago in Q3-24 EMI WOG 2.5-4.0 LBS 160.0 150.0 140.0 130.0 120.0 Cents/Lb. 110.0 100.0 90.0 80.0 70.0 60.0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 5 Year Range 5 Yr. Avg. 2022 2023 2024 Source: EMI 12
Slide 13: Corn Dynamics
Corn Dynamics US Corn Ending Stocks (MBUs) World Corn Endings stocks (MMT) 3,000 320 315 313 2,500 311 310 308 1,999 306 1,919 304 2,000 1,760 305 300 1,500 1,377 1,360 1,235 295 293 1,000 290 285 500 280 0 275 19/20 20/21 21/22 22/23 23/24 24/25p 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 ▪US
Slide 14: Soybean Dynamics
Soybean Dynamics US Soybean Ending Stocks (MBUs) World Soy End Stocks (MMT) 600 160 525 550 140 135 500 120 112 97 100 99 101 400 100 342 300 274 264 80 257 60 200 40 100 20 0 0 19/20 20/21 21/22 22/23 23/24 24/25p 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 ▪US realizes record soy yield, highes
Slide 15: Fiscal Year 2024 Capital Spending
Fiscal Year 2024 Capital Spending Capex (US$M) ▪ Continued investment in strategic projects will support Key Customers’ growth and emphasize our focus on further diversification of our portfolio and operational improvements ▪ Behind 2024 guidance spending pace due to timing of initiation of certain
Slide 16: APPENDIX
_Y pilgrims APPENDIX
Slide 17: Appendix: Reconciliation of Adjusted EBITDA
Appendix: Reconciliation of Adjusted EBITDA “EBITDA” is defined as the sum of net income 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 indicat
Slide 18: Appendix: Reconciliation of Adjusted EBITDA
Appendix: Reconciliation of Adjusted EBITDA PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Three Months Ended Nine Months Ended September 29, September 24, September 29, September 24, 2024 2023 2024 2023 (In thousands) Net income $ 349,990 $ 121,567 $ 851,451 $ 188,106 Add
Slide 19: Appendix: Reconciliation of Adjusted EBITDA
Appendix: Reconciliation of Adjusted EBITDA a. Interest expense, net, consists of interest expense less interest income. b. Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remea
Slide 20: Appendix: Reconciliation of LTM Adjusted EBITDA
Appendix: Reconciliation of LTM Adjusted EBITDA The summary unaudited consolidated income statement data for the twelve months ended September 29, 2024 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine months ended September
Slide 21: Appendix: Reconciliation of EBITDA Margin
Appendix: Reconciliation of EBITDA Margin 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 it is frequently used by securities ana
Slide 22: Appendix: Reconciliation of Adjusted EBITDA by Segment
Appendix: Reconciliation of Adjusted EBITDA by Segment PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Three Months Ended Three Months Ended September 29, 2024 September 24, 2023 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) Net income $ 27
Slide 23: Appendix: Reconciliation of Adjusted EBITDA by Segment
Appendix: Reconciliation of Adjusted EBITDA by Segment PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Nine Months Ended Nine Months Ended September 29, 2024 September 24, 2023 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) Net income (loss)
Slide 24: Appendix: Reconciliation of Adjusted EBITDA by Segment
Appendix: Reconciliation of Adjusted EBITDA by Segment a. Interest expense, net, consists of interest expense less interest income. b. Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingl
Slide 25: Appendix: Reconciliation of Adjusted Operating Income
Appendix: Reconciliation of Adjusted Operating Income 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 supplem
Slide 26: Appendix: Reconciliation of GAAP Operating Income Margin to Adjusted
Appendix: Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin 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 Margi
Slide 27: Appendix: Reconciliation of Adjusted Net Income
Appendix: Reconciliation of Adjusted Net Income 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 s
Slide 28: Appendix: Reconciliation of GAAP EPS to Adjusted EPS
Appendix: Reconciliation of GAAP EPS to Adjusted EPS 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 operat
Slide 29: Supplementary Selected Segment and Geographic Data
Appendix: Supplementary Selected Segment and Geographic Data PILGRIM'S PRIDE CORPORATION Supplementary Selected Segment and Geographic Data (Unaudited) Three Months Ended Nine Months Ended September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023 (In thousands) Sources of net sales