Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Investor Day (March 2025)
116 slides from Pilgrim's Pride's investor day presentation, Mar 14, 2025
Slide 1: Investor Day: To be the BEST
Investor Day To be the BEST Pilgrim’s Pride Corporation (NASDAQ: PPC) March 14th, 2025
Slide 2: 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 “anticipa
Slide 3: Today's Speakers
3 Today’s Speakers I N V E S T O R D A Y Fabio Sandri Bernie Adcock Sergio Nahuz President & CEO Head of US Fresh CMO & Head of Prepared Foods Ivan Siqueira Jesus Munoz Andrew Rojeski Matt Galvanoni President, Pilgrim’s Europe President, Pilgrim’s Mexico Head of Strategy, Investor Relations, & Susta
Slide 4: Global
4 Global Fabio Sandri President & CEO
Slide 5: A Leading Food Company
5 A Leading Food Company G L O B A L Data is measured by pounds per chickens sold. 1946 2007 2014 2017 CASE READY SMALL BIRD BIG BIRD PREPARED FOODS BUSINESS UNITS Founded Pittsburg, TX 1 4 IN MEXICO LBS OF CHICKENS SOLD OUT OF EVERY 1 4 IN THE U.K. NEARLY LBS OF CHICKENS SOLD OUT OF EVERY 2019 IN T
Slide 6: Our Vision, Strategy, Methods & Values
DETERMINATION SIMPLICITY AVAILABILITY HUMILITY SINCERITY DISCIPLINE OWNERSHIP CREATE GROWTH AND DEVELOPMENT OPPORTUNITIES THAT HELP OUR TEAM MEMBERS SUCCEED DRIVE OWNERSHIP AND ACCOUNTABILITY DEEPER MAKE DECISIONS BASED ON KNOWLEDGE, FACTS AND DATA RELENTLESSLY PURSUE ROOT CAUSE Our Vision, Strategy
Slide 7: An Unwavering Commitment To Safety As A Condition
An Unwavering Commitment To Safety As A Condition G L O B A L 7 0.13 0.04 2019 2023 Behavior – Standardized Operating Procedures – Job Rotation & Training Management – Root Cause Analysis – Safety Observations Tools – Repetitive Motion Assessments – Management KPIs Pilgrim’s Global Safety Index Sour
Slide 8: Creating An Experienced, Stable Team For Our Business
• Improved yield performance • Reduced downtime • Superior quality • Enhanced net staffing Creating An Experienced, Stable Team For Our Business G L O B A L 8 U.S. Europe Mexico Pilgrim’s Turnover Comparison 2019 2024 Source: PPC -36% -31% -14% Decline Since 2019
Slide 9: A Commitment To Team Member Development and our Communities
A Commitment To Team Member Development and our Communities G L O B A L 9
Slide 10: Cultivating A Better Future Through Sustainability
G L O B A L 10 Mentality – “Sustainability Is Efficiency” – Integration Throughout Our Business Collaboration – Suppliers – Food system partners – Customers Approach – Resilient Food Systems – Improved Productivity – “Hands On” Engagement Cultivating A Better Future Through Sustainability Decrease i
Slide 11: Cultivating Partnerships With Key Customers
Cultivating Partnerships With Key Customers G L O B A L 1. Reflects total % change from 2019 to 2024 for Key Customers In US. 41.0% 74.0% Volume Net Sales 11 Key Customer Partnerships Scale Scope Growth Trust Profitability Key Customer Global Growth From 2019 To 2024
Slide 12: Extensive Array Of Branded Offerings
United States Europe Combined With An Extensive Array Of Branded Offerings G L O B A L 12 Mexico
Slide 13: A Diversified Portfolio
A Diversified Portfolio G L O B A L 13Source: PPC Sales by Geography Sales by Mix Sales By Channel 29% 59% 12% 53%33% 9% 5% 26% 74% Mexico Europe United States Other Food Service Retail Export Prepared (Value Added) Fresh
Slide 14: Operational Improvement Through Operational Excellence
$300 $250 $125 $200 $180 $24 $140 $100 $60 $53 ($80) ($129) $93 $210 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 impacted by portfolio mix changes 2021 and 2022 impacted by inefficiencies from COVID-19, inflation, and staffing shortages Commitment at every level
Slide 15: Driving Profitable Growth
Driving Profitable Growth G L O B A L 11,409 17,878 2019 2024 Sales ($MM) 974 2,214 2019 2024 ADJ EBITDA ($MM) 57% Higher Attribute Offerings – NAE, Veg Fed – NAIHM – Organic – Air chill Operational Expertise – Mix Management – Quality & Safety Protocols – Training & Development Management Approach
Slide 16: Resulting In A More Resilient Earnings Stream
Average 2022-2024 9.3% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2019 2020 2021 2022 2023 2024 A d ju st ed E B IT D A M ar g in Average 2019-2021 7.9% Resulting In A More Resilient Earnings Stream G L O B A L 16Source: PPC SEC Filings United States PPC Global Europe Mexico
Slide 17: Unlocking Shareholder Value Through Integrated Strategies
Unlocking Shareholder Value Through Integrated Strategies And Differentiated Capabilities G L O B A L Consistent execution of strategies . . . . . . along with differentiated capabilities Unlocking Value For Shareholders • Drive Growth • Enhance Margins • Reduce Volatility • Key Customer Partnership
Slide 18: Protein is a Bright Spot
Protein is a Bright Spot G L O B A L Consumption Forecast (Million MT) • Increasing focus on protein – 59% sought protein for diet in 2022 – Rose to 71% as of 2024 • Amplified interest in healthy, balanced diets through meat – 64% agreed in 2019 – Rose to 73% by 2024 • Advantaged nutritional attribu
Slide 19: Building A Sustainable Competitive Advantage
Building A Sustainable Competitive Advantage G L O B A L 19 Unlocking Shareholder Value Drive Growth Enhance Margins Reduce Volatility Drive Growth • Foodmasters Acquisition • Just Bare Launch • Athens & Merida Investments Enhance Margins • European Integration • Working Capital Management Reduce Vo
Slide 20: US Business: Fresh
20 US Business: Fresh Bernie Adcock Head of US Fresh
Slide 21: An Overview Of Our US Business
An Overview Of Our US Business U S B U S I N E S S : F R E S H 21Source: PPC LARGE 8 + L B S RETAIL 6 - 7 L B S SMALL 3 - 5 L B S HATCHERIES 32 TEAM MEMBERS ~34K BIRDS PER DAY ~6.3M FEED MILLS 24 PROCESSING PLANTS 37 LBS PER YEAR 9B+ Business Units Big Bird/Commercial Small Bird Case Ready 7 PROTEIN
Slide 22: An Overview Of Our US Business: Sales Breakdown
An Overview Of Our US Business U S B U S I N E S S : F R E S H 22Source: PPC $10.6B $9.5B Breakdown of US Sales Value Added Fresh Big Bird Small Bird Case Ready Protein Conversion/Other Breakdown of US Fresh Sales Breakdown of US Fresh Sales by Channel $9.5B Retail Food Service Other Export 90% 10%
Slide 23: US Fresh: Revenue Overview
US Fresh: Revenue Overview U S B U S I N E S S : F R E S H 23Source: PPC 0% 25% 50% 75% 100% 2021 2022 2023 2024 % o f U .S . F re sh S al es Small Bird Case Ready Big Bird Debone Protein Conversion/Other Distinct Pricing approaches – Cost plus – Market Related – Commodity (Jumbo) – Negotiated Impac
Slide 24: US Fresh: Reducing Volatility Through Diversification
(6,000) (5,000) (4,000) (3,000) (2,000) (1,000) - 1,000 2,000 3,000 4,000 5,000 2019 2020 2021 2022 2023 2024 M ar g in * U.S. Fresh: Reducing Volatility Through Diversification U S B U S I N E S S : F R E S H 24Source: PPC Notes: *Indexed to 2019 Big Bird Debone US Fresh Small Bird Protein Case Rea
Slide 25: US Fresh Chicken: A Growing, On Trend Market
25 US Fresh Chicken: A Growing, On Trend Market U S B U S I N E S S : F R E S H Affordability – Less expensive compared to other proteins – Relatively lower feed conversion costs Availability – Number one consumed protein – Consistent growth Flexibility – Broad application – Widespread appeal
Slide 26: Chicken Provides Convenient And Cost-Effective Meal Solutions
Chicken Provides Convenient And Cost-Effective Meal Solutions For At Home Consumption U S B U S I N E S S : F R E S H Source: Circana, National Eating Trends (NET), Years Ending Mar. $(0.40) $(0.20) $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $/ LB Ground Beef vs. BSB Chicken Price Spre
Slide 27: Versatility Enabling Resilient Category Growth Away From Home
Dine-in 45% Takeout 40% Delivery 15% 11% 6% Chicken All Other On 95% of Menus Versatility Enabling Resilient Category Growth In Away From Home Environment U S B U S I N E S S : F R E S H Source: Technomic Special Analysis on Chicken Chains 2023, Technomic US Away From Home Wallchart – 2022-2024 Sale
Slide 28: Getting Started: The Supply Chain
Getting Started: The Supply Chain U S B U S I N E S S : F R E S H 28 GENETIC IMPROVEMENTS Broiler Processing Traits • Growth • Feed Conversion • Uniformity • Yields • Meat Quality • Uniformity Animal Welfare • Livability • Skeletal Strength • Behavior Breeder • Fertility • Hatchability • Production
Slide 29: Supply Chain: An Overview
Primary Breeder Pullet Farm Breeder Farm Supply Chain: An Overview U S B U S I N E S S : F R E S H 29 • Orders placed 18 months in advance • Five months for hens to reach maturity to lay eggs • Roughly one rooster for every ten hens • Hens typically remain in service until 65 weeks • About 165 eggs
Slide 30: Supply Chain: An Overview (Hatchery to Processing)
Hatchery Broiler Farm Processing PlantBroiler • 21 days incubation • Farm typically has three to four houses • Distinct grower programs (NAE, NAIHM, organic, etc.) • Segmented by live weight • Flexibility limited somewhat by bird size Supply Chain: An Overview U S B U S I N E S S : F R E S H 30
Slide 31: Supply Chain: Driving Production
Supply Chain: Driving Production U S B U S I N E S S : F R E S H 31Sources: USDA NASS, Hatchability calculated using placements 3 weeks after sets +5.7% Increase In Egg Sets Since 2019 306 bps Decline In Hatchability Since 2019 1,000 1,050 1,100 1,150 1,200 1,250 1,300 75.0% 76.0% 77.0% 78.0% 79.0%
Slide 32: Key Considerations: Breeder Selection
Key Considerations: Breeder Selection U S B U S I N E S S : F R E S H 32Sources: National Chicken Council U.S. Broiler Performance Feed to Meat Gain , Ratio USDA RTC Young Chickens LBS to USDA Young Chicken Live LBS Produced; Notes: *PPC Estimate ~65% Percentage of Total Live Cost that is Corn & Soy
Slide 33: Supply Chain: Driving Production
Supply Chain: Driving Production U S B U S I N E S S : F R E S H Sources: USDA NASS 36.0 38.0 40.0 42.0 44.0 46.0 48.0 6.00 6.25 6.50 6.75 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 P ro d u ct io n (b ill io n s of P ou n d s) A ve ra g e Li ve W ei g h t (P ou n d s) Total Production Live W
Slide 34: An Overview: Attribute Comparisons
Complexity D if fe re n ti at io n An Overview: Attribute Comparisons U S B U S I N E S S : F R E S H 34Source: *Circana Integrated Fresh, Latest 52 Weeks Ending 1/26/25 NO ANTIBIOTICS IN HUMAN MEDICINE (NAIHM) •No use of antibiotics critical to human health •No hormones/steroids CONVENTIONAL •No Ho
Slide 35: An Example: Reinforcing Strategies
PPC Dedicated Complex Grow Out Program Processing Techniques Differentiates PPC through operational capabilities – Grower programs in Live Operations – Distinct processing techniques (air chill, etc.) Reinforced via Key Customer partnerships – Dedicated complex – Mix with scale – Quality and service
Slide 36: Case Study: Guntersville, AL (Case Ready)
Sales growth driven by Key Customer Partnership – Leading player in Club channel – Expansion given interest in differentiated offering – Existing long-term relationship Enhanced margins through operational excellence – Simplified mix at scale – Dedicated complex – Quality and service Reduced volatil
Slide 37: Unlocking Value For The Consumer To Generate Growth
2019 2020 2021 2022 2023 2024 Lbs Net Sales $ Unlocking Value For The Consumer To Generate Growth U S B U S I N E S S : F R E S H 1. Reflects total % change from 2019 to 2024 for Key Customers In US. Private Label Organic NAE Air Chill Pilgrim’s Growing Fresh Retail volume with Key Customers over 3X
Slide 38: Case Study: Douglas, GA (Protein Conversion)
Sales growth driven by increased in interest partnerships – Recognition of quality and service levels – Further presence in growing, profitable market Enhanced margins through operational expertise – Leverage existing technical and processing expertise – Upgrading product mix Reduced volatility give
Slide 39: Key Takeaways: US Fresh Business
39 Key Takeaways: US Fresh Business U S B U S I N E S S : F R E S H Drive Growth • Strengthen Key Customer partnerships through long-term arrangements and investments in distinct operational capabilities • Reinforce quality and service to cultivate existing relationships and attract new partners Enh
Slide 40: What's Next: US Business: Fresh
New Protein Conversion Capacity 40 What’s Next: US Business: Fresh U S B U S I N E S S : F R E S H Unlocking Shareholder Value Drive Growth Enhance Margins Reduce Volatility New Small Bird Capacity Convert Big Bird To Case Ready For Key Customers
Slide 41: US Business: Live Operations
41 US Business: Live Operations Kendra Waldbusser Head of FSQA & Live Tech Services
Slide 42: Biosecurity: Key Considerations
Biosecurity: Key Considerations U S B U S I N E S S : L I V E O P E R A T I O N S Structural • Number of Houses • Number of Birds Per House • Proximity of Houses Management • Reducing Foot traffic • Minimizing contact • Application of disinfectants • Training Equipment • Feed & Water Coverage • Dedi
Slide 43: USDA HPAI Approach
43 USDA HPAI Approach • $500 million in investments in biosecurity for poultry, beginning with a focus on egg layers; • $400 million in relief/indemnity for affected farmers; • $100 million for vaccine research and development (including a public-private task force focused on developing protocols fo
Slide 44: Food Safety & Quality
44 Food Safety & Quality U S B U S I N E S S : L I V E O P E R A T I O N S • Uncompromising food safety & quality • 3rd Party Certification from GFSI scheme audits • Regulatory compliance with USDA Food Safety & Inspection Service Safe people, safe products and healthy attitudes
Slide 45: Animal Welfare
Animal Welfare U S B U S I N E S S : L I V E O P E R A T I O N S Our American Humane Certified Farm program provides third- party, independent audits to help verify that certified entities’ care and handling of farm animals meet our science-based welfare standards. The independent, multi-stakeholder
Slide 46: Driving Profitable Growth: US Prepared Foods Investments
46 Driving Profitable Growth: US Prepared Foods Investments Sergio Nahuz CMO & Head of Prepared Foods
Slide 47: An Overview: US Prepared Foods
85% 15% 45% 55% An Overview: US Prepared Foods U S B U S I N E S S : P R E P A R E D F O O D S 47 Branded vs Private Label Sales by Channel Private Label Branded Retail Away From Home Mount Pleasant, TX Moorefield, WV Waco, TX Source: PPC
Slide 48: Prepared Foods: Large And Growing Market
Prepared Foods: Large And Growing Market U S B U S I N E S S : P R E P A R E D F O O D S 48Sources: Pilgrim’s Intelligence Estimates Wholesale Value and Market Growth, Par-Cooked & Fully Cooked MARKET SCOPE SIZE ($B) ‘19-’24 CAGR Retail Frozen $3.5 14% Retail Deli $1.3 4% Commercial $3.1 8% Non-Comm
Slide 49: Case Study: Identifying Where to Play
Case Study: Identifying Where to Play U S B U S I N E S S : P R E P A R E D F O O D S 49 $2.80 $3.70 $4.05 $4.93 $5.33 $5.66 2019 2020 2021 2022 2023 2024 15% CAGR Retail Frozen Chicken Category • Top 3 consumer need states: Easy Meals (55%), Low Cost (51%) and Versatile for Everyday (42%) • Categor
Slide 50: Case Study: Consumer Centric Approach
Case Study: Consumer Centric Approach U S B U S I N E S S : P R E P A R E D F O O D S 50Sources: Pilgrim’s Intelligence Estimates Wholesale Value and Market Growth, Par-Cooked & Fully Cooked Family Pleasers Protein Seekers Convenience Seekers Mindful Shoppers 29% 17% 16% Cooking Avoiders 11% 15% Ins
Slide 51: Case Study: Consumer Centric Approach – Meet Olivia
Age: Millennial Education: 4+ years of College Living: Urban & Suburban – Affluent & Middle Class Lifestyle: More Affluent, Middle Class I’m not an over-the-top health nut, but I do care about what I bring into the house for meals: good quality protein, fresh fruits and veggies. And of course, we al
Slide 52: Case Study: Just Bare Performance
Case Study: Just Bare Performance U S B U S I N E S S : P R E P A R E D F O O D S 52Sources: Pilgrim’s Intelligence Estimates Wholesale Value and Market Growth, Par-Cooked & Fully Cooked $53.6 $26.0 $31.9 $29.5 JUST BARE CATEGORY AVG PRIVATE LABEL TOP 5 BRANDS (X JUST BARE) 104.5% 7.7% 4.7% 3.5% JUS
Slide 53: Case Study: Just Bare and Pilgrim's Brands Performance
Case Study: Just Bare and Pilgrim’s Brands Performance U S B U S I N E S S : P R E P A R E D F O O D S Pilgrim’s Retail Frozen Brands, Calculated Against Retail Frozen Fully Cooked Circana Integrated Fresh Sales 0.6% 10.1% 2020 2021 2022 2023 2024 Market Share $ 53 • Both Brands Household Penetratio
Slide 54: Brand Recognition
54 Brand Recognition U S B U S I N E S S : P R E P A R E D F O O D S Organic Publication from allrecipes.com – Dec. 2024 (+10MM Followers) “There is a new Family Favorite in town allrecipes.com” Best of the Best 1 2 3 4 5 6 7 Golden and crunchy exterior “nicely salted” and flavorful. tender and juic
Slide 55: Case Study: Away From Home
Case Study: Away From Home U S B U S I N E S S : P R E P A R E D F O O D S Away from home is a larger market, more complex and poses a variety of operators unmet needs The Approach Understand The Landscape Build the winning Strategy Execution 55 • Increase reach via Physical coverage and digital sol
Slide 56: Case Study: Away From Home Non-Commercial
2021 2022 2023 2024 Case Study: Away From Home Non-Commercial U S B U S I N E S S : P R E P A R E D F O O D S 56Pilgrim’s Internal Sales Gold Kist Volume Growth 15% CAGR • Operators have different needs based on each segment they operate. • We grew by catering brands that appeal to each prioritized
Slide 57: Key Takeaways: US Prepared Foods
Key Takeaways: US Prepared Foods U S B U S I N E S S : P R E P A R E D F O O D S Drive Growth • Significant opportunity for growth across retail and away from home in prepared foods • Strong track record of performance across different brands and channels Enhance Margins • Branded portfolio approach
Slide 58: What's Next: US Prepared Foods
58 What’s Next: US Prepared Foods U S B U S I N E S S : P R E P A R E D F O O D S Unlocking Shareholder Value Drive Growth Enhance Margins Reduce Volatility Prepared Foods New Capacity Portfolio Diversification Footprint Redesign
Slide 59: US Business: Q&A Session
US Business: Q&A Session U S B U S I N E S S : F R E S H & P R E P A R E D Fabio Sandri Bernie Adcock Sergio Nahuz Kendra Waldbusser President & CEO Head of US Fresh CMO & Head of Prepared Foods Head of FSQA & Live Tech Services Lisa Burdick Robert Garlington Matt Galvanoni Head of Human Resources H
Slide 60: Europe
60 Europe Ivan Siqueira President, Pilgrim’s Europe
Slide 61: One Pilgrim's Europe Integrated Model
61 One Pilgrim's Europe Integrated Model E U R O P E Source: PPC One of the largest poultry processing companies in Europe. The UK's largest pork processor with a vast value-added portfolio. Strong brand portfolio and leader in chilled and frozen ready meals. 2017 $1,300m 2019 $350m 2021 $952m Toget
Slide 62: Business Categories & Footprint
Business Categories & Footprint E U R O P E 62Source: PPC Well-invested production network across Europe United Kingdom 23 Ireland 2 France 3 Netherlands 1 66% 23% 9% Added Value Fresh Export Other Revenue split by category 2% Integrated business model across Poultry, Pork and Value Added 4 Fresh Ch
Slide 63: Channel & Customers
Channel & Customers E U R O P E 63Source: PPC Select private label long term supply contracts Partner of choice to all major grocery retailers UK Export across China, Europe, Asia, Africa & Americas 56 Global markets 27 additional new countries opened in FY2024 (9 Pork;11 Chicken; 7 FPP) 13% growth
Slide 64: Product Portfolio: Three Manufacturing Companies Into One
64 Product Portfolio: Three Manufacturing Companies Into One E U R O P E Source: Circana; YouGov; Kantar; The Grocer: Britain’s Biggest Brands, 2024 Fresh Added Value Brands Fresh & Frozen Coated Chicken Fresh Pork, Bacon, Gammon & Sausages Fresh Lamb Cooked Meats Ready To Cook Fresh Ready Meals RIC
Slide 65: Case Study: Key Customer Strategy - Poultry
Background The Results The Approach Case Study: Key Customer Strategy - Poultry E U R O P E • Long standing and positive trading relationship in a shared supply scenario • Secured 100% sole supply status for 10 years – a first in the industry • Customer consistent outperformance of +1.5 share points
Slide 66: Case Study: Strategy of Integration
Case Study: Strategy of Integration E U R O P E Operated as 3 standalone companies with 31 operating factories Background The Results The Approach Integration all companies into one with new business structure Footprint Mix Cogs New portfolio for exports Innovations and Renovations in the Retail 1 2
Slide 67: Profit Margins Improvements From 3.3% - 5.1%
67 Profit Margins Improvements From 3.3% - 5.1% E U R O P E Source: PPC Poultry Business Developent Volume (Tons) 2023 2024 2023 2024 172 (3.3%) 263 (5.1%) Adjusted Operating Income [USD m] Adjusted Operating Income [USD mm] Historical Development 5,203 5,137 402.7 420.8
Slide 68: Our Business Model
Our Business Model E U R O P E Adjusted Operating Income [USD m] Fresh Chicken & Pork Value Added Brands Diversified Business Portfolio > Reduce volatility 60%-65% 35%-40% Cost Plus Market Models: • Long term contract based on Cost of Production • Raw material pass through Business Model: Pricing Ap
Slide 69: Growth Strategy
Growth Strategy E U R O P E 69 Enhance Continue to Integrate and Optimize Grow Diversify & Grow through: • Value Added / Branded • Innovation • Accretive acquisitions Strengthen & grow core Enhance Key customer mix Leverage advantage Expand offerings
Slide 70: Key Market Performance & Consumer Trends
3.5% 4.9% 4.5% 0.2% 2.3% -1.0% UK Retail Grocery ROI Retail Grocery European Food Service* Value Growth Retail Volume/Food Service Visits Growth Key Market Performance & Consumer Trends E U R O P E Source: Retail Size: IGD, February 2025; Food Service Size: Statista, February 2025; Retail Growth: Ka
Slide 71: Our Categories Are Performing Strongly, With Headroom For Growth
Our Categories Are Performing Strongly, And There Is Headroom For Growth E U R O P E Source: Kantar Worldpanel, 52 weeks to 29th December 2024 v PY; Brands value and volume growth is internal data to year end 2024; Food service sector sizes from Lumina Intelligence Eating Out in the UK Report, 2024,
Slide 72: Branded Growth Strategy
Win In Our Heartland Expand Into New Categories Expand Channel Presence Expand Into New Markets Build & Buy New Brands Further expansion in retail & food service Into Universities Into Stadiums and Cinemas Oakhouse dispensers Branded Growth Strategy E U R O P E 72
Slide 73: Key Takeaways: Europe
73 Key Takeaways: Europe E U R O P E Drive Growth • Strong European platform created for growth • Strengthening and growing the core, enhancing mix and expanding offer into more value added • Branded growth and innovation model with new product development • Grow export into new markets and grow foo
Slide 74: Mexico
74 Mexico Jesus Munoz President, Pilgrim’s Mexico
Slide 75: An Overview Of Our Mexico Business
• Started operations in Mexico in 1988 • 12,100 Team members • 2nd Largest Chicken Industry • 25% Mkt Share • Revenues of 2.1B USD • Vertically integrated • National coverage - 100% Background Footprint Value Chain: Grand Parents Breeders Feed Mills Hatcheries Broilers Processing Plant Distribution
Slide 76: An Overview Of Our Mexico Business: Sales Breakdown
An Overview Of Our Mexico Business M E X I C O 27% 14% 3% 29% 27% Breakdown of Mexico Sales 90% 10% Breakdown of Channel Mix Value Added Fresh QSR Away From Home Retail Wholesaler Live Sales 76Source: PPC
Slide 77: Mexico: Channel Overview
Mexico: Channel Overview M E X I C O Retail USD$ $582$263 2019 2024 2.2X 3.5X QSR USD$ $67$19 2019 2024 2.3X Food Service USD$ $295$132 2019 2024 38% Commodity (Wholesalers and Live Sales) USD$ $891 2019 2024 77 $1,226
Slide 78: Key Customer: Examples
Key Customer: Examples M E X I C O Retail Food Service QSR 78
Slide 79: Reducing Volatility
25% 29% 32% 34% 37% 39% 42% 44% 75% 71% 68% 66% 63% 61% 58% 56% 2017 2018 2019 2020 2021 2022 2023 2024 Commodity vs Strategic Channel (USD$) CommodityStrategic 79 Reducing Volatility M E X I C O Source: Pilgrim´s México Analysis Commercial Strategy: Increasing sales in strategic channels and reduci
Slide 80: Pilgrim's Brand Performance
80 Pilgrim’s Brand Performance M E X I C O Source: Pilgrim´s México Analysis Pilgrim’s branded product portfolio: Pilgrim’s brand has a wide variety of products and customer solutions for every consumer at every level Pilgrim’s Branded Products Sales (M USD$) Pilgrim’s brands grew +20% CAGR 2.9 X $3
Slide 81: Other Brands
Other Brands M E X I C O 81Source: Pilgrim´s México Info Brand with 16 years in the market, we have established ourselves as the leading brand in the category, becoming a trusted ally for Mexican households. Just Bare is a healthy protein Brand focused on quality providing quality protein and nutrit
Slide 82: The Opportunity: Mexico Poultry Industry
The Opportunity: Mexico Poultry Industry M E X I C O Source: UNA Report 2024 ConsumptionPoultry Industry Value MXP • 245 B MX$ / 12.3 B USD$ • 63% of the protein produced in Mexico comes from the poultry sector • 85% Domestic / 15% Imported • The poultry industry generated over 1.4MM jobs. • Chicken
Slide 83: The Opportunity: Mexico Poultry
The Opportunity: Mexico Poultry M E X I C O Source: UNA Report 2024 Production and imports of chicken 2.91 3.03 3.18 3.28 3.38 3.47 3.55 3.6 3.66 3.76 3.85 3.94 .39 .42 .48 .50 .52 .52 .57 .55 .61 .59 .69 .70 3.29 3.43 3.65 3.78 3.9 3.99 4.12 4.14 4.27 4.35 4.54 4.63 1.8 2.3 2.8 3.3 3.8 4.3 4.8 5.3
Slide 84: Growth Plans: Main Projects
84 Growth Plans: Main Projects M E X I C O
Slide 85: Growth Plans: Sample Projects
And New Processing Plant Veracruz Hatchery and Feed Mill Plant Veracruz New Broiler and Breeders Farm South Complex Building of 20 Broiler Farms in Veracruz and Mérida Grandparents New Farms for Female and Male and Incubator Expansion in Saltillo Prepared Foods Expansion Growth Plans: Sample Project
Slide 86: Key Takeaways: Mexico
86 Key Takeaways: Mexico M E X I C O Drive Growth • Recognize robust demand for chicken, especially in retail channels • Maintain investments in capacity to serve growth in long term demand for protein Enhance Margins • Upgrade product mix to minimize reliance on whole chicken offerings • Leverage s
Slide 87: What's Next: Mexico
Processing Plants Automation 87 What’s Next: Mexico M E X I C O Add Small Bird Capacity Unlocking Shareholder Value Drive Growth Enhance Margins Reduce Volatility Expand Prepared Foods & Fresh Capacity Continue Reinforcing Brand wareness
Slide 88: International Management Q&A
88 International Management Q&A I N T E R N A T I O N A L B U S I N E S S : E U R O P E & M E X I C O Fabio Sandri Matt Galvanoni Ivan Siqueira Jesus Munoz President & CEO Chief Financial Officer President, Pilgrim’s Europe President, Pilgrim’s Mexico
Slide 89: Sustainability
89 Sustainability Andrew Rojeski Head of Strategy, Investor Relations, & Sustainability
Slide 90: Sustainability: An Overview
Sustainability: An Overview S U S T A I N A B I L I T Y 90Source: PPC SOCIAL Health & Safety Achieve 30% improvement in Global Safety Index performance by 2025 vs. 2019 baseline Reduce Scope 1 & 2 GHG emission intensity by 30% by 2030 vs. 2019 baseline ENVIRONMENT Energy & Emissions Reach 60% renewa
Slide 91: Making It Happen: Sustainability
91 Making It Happen: Sustainability S U S T A I N A B I L I T Y Source: PPC • Approved 113 global GHG emission reduction projects though year-end 2022 • Established KPIs for energy usage by facility • Linked senior level compensation to Sustainability targets • Review progress against GHG emissions
Slide 92: Making It Happen: Sustainability (GHG Intensity)
0.0125 0.011 0.0105 0.0103 0.0088 0.0000 0.0020 0.0040 0.0060 0.0080 0.0100 0.0120 0.0140 2019 Baseline 2023 Ideal Trend 2023 Actual 2025 Milestone 2030 Milestone Renewable Natural Gas Partnership with GreenGas USA Making It Happen: Sustainability S U S T A I N A B I L I T Y 92Source: PPC PPC Global
Slide 93: Finance
93 Finance Matt Galvanoni Chief Financial Officer
Slide 94: Total Shareholder Return
- 20 40 60 80 100 120 140 160 180 Evolution of $100 invested – Total Shareholder Return PPC Peer Group Russell 2000 Total Shareholder Return F I N A N C E 94Notes: Peer Group Includes Tyson and Hormel $169 $78 $146
Slide 95: Net Sales Growth
11,409 12,092 14,777 17,468 17,362 17,878 - 5,000 10,000 15,000 20,000 2019 2020 2021 2022 2023 2024 Net Sales ($MM) U.S. Europe Mexico Net Sales Growth F I N A N C E 95Source: PPC 9.4% CAGR
Slide 96: Adjusted EBITDA Growth
974 788 1,289 1,648 1,034 2,214 0 500 1000 1500 2000 2500 2019 2020 2021 2022 2023 2024 Adjusted EBITDA ($MM) Adjusted EBITDA Growth F I N A N C E 96Source: PPC 17.9% CAGR
Slide 97: How We Measure "The Best"?
How We Measure “The Best”? F I N A N C E Notes: US is Tyson Chicken vs. Pilgrim’s-US; Mexico is Bachoco vs. Pilgrim’s-Mexico; Europe is the average of Cranswick, Bakkavor and 2 Sisters vs. Pilgrim’s-Europe Competition PPC Adjusted Operating Income the last 2 years Competition PPC Competition PPC 3.4
Slide 98: Extensive Record Of Industry Leading Performance
3.5% 7.8% 8.2% 8.4% 13.8% 15.9% 12.6% -1.9% -0.7% 2.1% 4.5% 5.0% 7.0% 14.2% 15.4% 11.5% 0.2% 0.8% -2.9% 3.0% 5.0% 6.2% 7.3% 1.8% -3.8% -1.5% 1.8% 4.8% 3.9% 3.9% 7.5% 8.4% -5% 0% 5% 10% 15% 20% 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 PILGRIM'S P
Slide 99: Capital Expenditures – Investing In Our Business
348 355 382 487 544 476 - 200 400 600 800 1,000 2019 2020 2021 2022 2023 2024 A m ou n t ($ M M ) “Maintenance” Capital of roughly $400MM per year Capital Expenditures – Investing In Our Business F I N A N C E 99Source: PPC
Slide 100: Capital Allocation Priorities: Dividend
Record Date April 3rd, 2025 Dividend $6.30 per share Pay Date April 17th, 2025 Cash distribution of $1.5 Billion Capital Allocation Priorities: Dividend Excess Cash F I N A N C E 100
Slide 101: Generating Cash / Shareholder Value
101 Generating Cash / Shareholder Value F I N A N C E Source: PPC Generated greater than $5 Billion of Cash Flow From Operations over last 6 years Invested on average over $430 Million of CapEx per year over last 6 years $950 Million acquisition of Pilgrim’s Foodmasters $1.5 Billion Dividend in 2025
Slide 102: Strong Balance Sheet
102 Strong Balance Sheet F I N A N C E Source: PPC Proforma year-end 2024 leverage ratio of 1.2x following $1.5 billion dividend Additional $1.1 Billion of additional Liquidity available through Revolving Credit Facilities Balance sheet remains flexible for strategic M&A Earliest Debt Maturity tower
Slide 103: Capital Allocation Priorities
Capital Allocation Priorities F I N A N C E Invest to Reinforce our Strategies • Long-Term Key Customer Partnerships • Differentiated Offerings • Working Capital Management • Operational efficiencies • ROCE Target of 15% • Net Leverage ratio target of 2-3x • Capital discipline • Diversify our portfo
Slide 104: Capital Allocation: Strategic M&A
104 Capital Allocation: Strategic M&A F I N A N C E • Grow / Upgrade our Chicken and Protein Portfolio in current regions and leverage Key Customer relationships • Grow our Prepared Foods Operations – Acquire complimentary branded food companies that can further diversify our portfolio • Selectively
Slide 105: Key Takeaways: Finance
105 Key Takeaways: Finance F I N A N C E Drive Growth • Organic growth projects in the US and Mexico – estimated $350MM growth CAPEX in 2025 • Momentum in branded offerings across all regions • M&A opportunities across proteins • Identify investments to meet ROCE and payback targets Enhance Margins
Slide 106: Wrap Up
106 Wrap Up Fabio Sandri President & CEO
Slide 107: Key Projects for Next Years
107 Key Projects for Next Years C L O S E New Small Bird Capacity New Prepared Foods Capacity Unlocking Shareholder Value Drive Growth Drive Growth Conversion of Big Bird Plant to Case Ready for Key Customers New Protein Conversion Capacity United States Mexico Geographic Expansion Prepared Foods Gr
Slide 108: What's Next: 2025 & Beyond
Grow our Branded and Value Added Products 108 What’s Next: 2025 & Beyond C L O S E Add Small Bird Capacity Unlocking Shareholder Value Drive Growth Enhance Margins Reduce Volatility Support Key Customers Growth Improve our Portfolio Strategic Acquisitions
Slide 109: Our Vision, Strategy, Methods & Values
DETERMINATION SIMPLICITY AVAILABILITY HUMILITY SINCERITY DISCIPLINE OWNERSHIP CREATE GROWTH AND DEVELOPMENT OPPORTUNITIES THAT HELP OUR TEAM MEMBERS SUCCEED DRIVE OWNERSHIP AND ACCOUNTABILITY DEEPER MAKE DECISIONS BASED ON KNOWLEDGE, FACTS AND DATA RELENTLESSLY PURSUE ROOT CAUSE C L O S E 109 Fill u
Slide 110: Management Q&A
Management Q&A Q & A Fabio Sandri Matt Galvanoni Bernie Adcock Sergio Nahuz President & CEO Chief Financial Officer Head of US Fresh CMO & Head of Prepared Foods Kendra Waldbusser Lisa Burdick Robert Garlington Andrew Rojeski Head of FSQA & Live Tech Services Head of Human Resources Head of Growth H
Slide 111: Appendix
APPENDIX
Slide 112: 1. For further information regarding adjustments, please see previous SEC filings.
1. For further information regarding adjustments, please see previous SEC filings.
Slide 113: 1. For further information regarding adjustments, please see previous SEC filings.
1. For further information regarding adjustments, please see previous SEC filings.
Slide 114: 1. For further information regarding adjustments, please see previous SEC filings.
1. For further information regarding adjustments, please see previous SEC filings.
Slide 115: 1. For further information regarding adjustments, please see previous SEC filings.
1. For further information regarding adjustments, please see previous SEC filings.
Slide 116: 1. For further information regarding adjustments, please see previous SEC filings.
1. For further information regarding adjustments, please see previous SEC filings.