Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q4 2019 Earnings Presentation
25 slides from Pilgrim's Pride's earnings presentation, Feb 21, 2020
Slide 1: Financial Results for Fourth Quarter and Year Ended December 29, 2019
Financial Results for Fourth Quarter and Year Ended December 29, 2019 Pilgrim’s Pride Corporation (NASDAQ: PPC)
Slide 2: Cautionary Notes and Forward-Looking Statements
Cautionary Notes and Forward-Looking Statements Statements contained in this presentation that share our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,” “estimate,” “should,” “expect,” “project,” “plan,” “imply,” “intend,” “foresee” an
Slide 3: Pullet Placement Growth In Line With Expected New Capacity
Pullet Placement Growth In Line With Expected New Capacity 9,000 Intended Pullet Placements 8,500 8,000 7,500 7,000 6,500 6,000 ThousandHead 5,500 5,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 5 Yr. Avg. . Trailing 8-Month placements 4.0% above year ago placements to support new ca
Slide 4: Hatching Layer Flock Also in Line With New Capacity
Hatching Layer Flock Also in Line With New Capacity Broiler Type Hatching Layers Egg Production per 100 Layers 60,000 1,950 59,000 1,900 58,000 1,850 57,000 56,000 1,800 55,000 1,750 Eggs 54,000 1,700 ThousandHead 53,000 1,650 52,000 51,000 1,600 50,000 1,550 Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 5: Hatchery Utilization Tracking to Year Average
Hatchery Utilization Tracking to 5 Year Average 96.0% 94.0% 92.0% 90.0% % % 88.0% 86.0% 84.0% 82.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 5 Yr. Avg. Source: Agristats 5
Slide 6: Egg Sets Increase YTD in '20 Needed to Supply New Plants; Hatchability Still Below
Egg Sets Increase YTD in ’20 Needed to Supply New Plants; Hatchability Still Below ‘18/’19 and 5 Year Avg. Chicken Egg Sets Chicken Hatchability by Week - USDA by Week - USDA 250,000 83.0% 240,000 82.5% 82.0% 230,000 81.5% 220,000 81.0% 210,000 % 80.5% 80.0% 200,000 Thousands of Eggs 79.5% 190,000 7
Slide 7: Chick Placements Up +4.0% YTD in 2020
Chick Placements Up +4.0% YTD in 2020 Chicken Broiler Placed by Week- USDA 195,000 190,000 185,000 180,000 175,000 Head Head (000) 170,000 165,000 160,000 5 Year Range 2018 2019 2020 5 Yr. Avg. Source: USDA 7
Slide 8: Growth Concentrated on The Big Bird Categories
Growth Concentrated on The Big Bird Categories Head Processed by Size 100% 15.1% 15.6% 90% 18.3% 19.7% 21.4% 20.9% 21.2% 21.7% 23.3% 24.2% 80% 19.1% 19.3% 70% 19.4% 19.3% 20.9% 22.5% 23.6% 25.4% 26.2% 26.0% 60% 50% 42.9% 40.7% 35.5% 35.0% 40% 32.2% 31.2% 30.4% 30.2% 28.7% 25.8% 30% 20% 24.4% 26.9% 2
Slide 9: Total Freezer Inventories Higher Than Last Year But Stable at Year End
Total Freezer Inventories Higher Than Last Year But Stable at Year End Total Chicken Inventories 1,000,000 950,000 900,000 850,000 800,000 LBS (000) 750,000 700,000 650,000 2017 2018 2019 3 Yr. Avg. . Breast meat inventories continue to grow YOY. . LQ climbing back from historical lows. . Wing inven
Slide 10: Cutout 2019 Better Than Year Before, and Following Seasonal Patterns
Cutout 2019 Better Than Year Before, and Following Seasonal Patterns YTD Cutout Value 95.00 90.00 85.00 80.00 75.00 Cents/Lb 70.00 65.00 61.32 60.00 55.00 50.00 2/1 1/4 3/1 6/7 7/5 8/2 5/10 1/18 2/15 3/15 3/29 4/12 4/26 5/24 6/21 7/19 8/16 8/30 9/13 9/27 11/8 12/6 12/20 10/11 10/25 11/22 5 Year Rang
Slide 11: Strength in Wings and LQs Continue to Support Cutout
Strength in Wings and LQs Continue to Support Cutout; Boneless Breasts and Tenders Gaining Traction USDA Boneless/Skinless Breast NE USDA Tenders NE 175.00 235.00 215.00 155.00 195.00 135.00 175.00 155.00 115.00 Cents/Lb Cents/Lb 135.00 115.00 95.00 130.72 90.28 95.00 75.00 75.00 1/5 2/4 3/6 4/5 5/5
Slide 12: WOG Pricing Following Seasonality
WOG Pricing Following Seasonality EMI WOG 2.5-4.0 LBS 120 110 100 90 Cents/Lb. 85.84 80 70 60 2/2 1/5 3/2 6/8 7/6 8/3 2/16 1/19 3/16 3/30 4/13 4/27 5/11 5/25 6/22 7/20 8/17 8/31 9/14 9/28 11/9 12/7 10/12 10/26 11/23 12/21 5 Year Range 2018 2019 2020 5 Year Average Source: EMI 12
Slide 13: Corn Stocks Remain at Adequate Levels
Corn Stocks Remain at Adequate Levels . Despite a challenging growing season in the U.S., stocks/use remains at adequate levels . U.S. exports weighed down by large global production helping to maintain U.S. stocks/use Source: USDA 13
Slide 14: Soybean Inventories Remain High
Soybean Inventories Remain High . Stocks are set to decline from record levels due to a reduction in U.S. soybean production . Weak global export demand due to ASF keeping stocks/use at surplus levels Source: USDA 14
Slide 15: Fiscal Year 2019 Financial Review
Fiscal Year 2019 Financial Review . U.S.: Key Customer partnerships continue to deliver growth and improved Main Indicators ($M) FY-19 FY-18 consistency; MX: Stable full-year performance; UK/Europe: Better legacy Net Revenue 11,409.2 10,937.8 results due to operational improvements, Gross Profit 1,0
Slide 16: Fourth Quarter 2019 Financial Review
Fourth Quarter 2019 Financial Review . U.S.: Commodity improved Y/Y; MX: Soft macro environment but increased volume; Main Indicators ($M) Q4-19 Q4-18 UK/Europe: Legacy operations margins increased +100bps Y/Y, new assets already Net Revenue 3,063.5 2,656.8 generating positive EBITDA. Gross Profit 2
Slide 17: Fiscal Year 2019 Capital Spending
Fiscal Year 2019 Capital Spending CapexCapex (US$M)(US$M) . Strong Free Cash Flow generation has enabled us to direct more capital spending towards identified projects with rapid payback and structural projects. . New strategic projects will support key customers growth and de-emphasize our exposure
Slide 18: Investor Relations Contact
Investor Relations Contact Investor Relations: Dunham Winoto Director, Investor Relations E-mail: IRPPC@pilgrims.com Address: 1770 Promontory Circle Greeley, CO 80634 USA Website: www.pilgrims.com 18
Slide 19: Appendix
APPENDIX All about great taste 19
Slide 20: Appendix: EBITDA Reconciliation
Appendix: EBITDA Reconciliation “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 o
Slide 21: Appendix: Reconciliation of LTM EBITDA
Appendix: Reconciliation of LTM EBITDA The summary unaudited consolidated income statement data for the twelve months ended December 29, 2019 (the LTM Period) have been calculated by summing each of the unaudited thirteen week periods within the audited fifty-two week period ended December 29, 2019.
Slide 22: Appendix: EBITDA Margin Reconciliation
Appendix: EBITDA Margin Reconciliation EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by Net Revenue for the applicable period. PILGRIM'S PRIDE CORPORATION Reconciliation of EBITDA Margin (Unaudited) Thirteen Weeks Ended Fifty-Two Weeks Ended Thirt
Slide 23: Appendix: Reconciliation of Adjusted Net Income
Appendix: Reconciliation of Adjusted Net Income A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share to adjusted net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share is as follows: PILGRIM'S PRIDE CORPORATION Rec
Slide 24: Appendix: Adjusted EPS Bridge
Appendix: Adjusted EPS Bridge A reconciliation of GAAP earnings per share (EPS) to adjusted earnings per share (EPS) is as follows: PILGRIM'S PRIDE CORPORATION Reconciliation of GAAP EPS to Adjusted EPS (Unaudited) Thirteen Weeks Ended Fifty-Two Weeks Ended December 29, December 30, December 29, Dec
Slide 25: Appendix: Segment and Geographic Data
Appendix: Segment and Geographic Data PILGRIM'S PRIDE CORPORATION Supplementary Geographic Data (Unaudited) Thirteen Weeks Ended Fifty-Two Weeks Ended December 29, December 30, December 29, December 30, 2019 2018 2019 2018 (In thousands) Sources of net sales by geographic region of origin: U.S. $ 1,