Slide 1: Financial Results for Third Quarter Ended September 24th, 2023
Financial Results for Third Quarter Ended September 24th, 2023 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 2023 Financial Review
Third Quarter 2023 Financial Review ▪ U.S.: Year-over-year (YoY) decline in commodity market pricing impacted Big Bird business; however, significant quarter-over-quarter (QoQ) operating Main Indicators ($MM) Q3 2023 Q3 2022 income improvement for the overall US business; UK/Europe: YoY and QoQ prof
Slide 4: Pullet Placements +6.6% Y/Y in Q3-2023; Up 2.6% YTD
Pullet Placements +6.6% Y/Y in Q3-2023; Up 2.6% YTD 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 2022 2023 5 Yr. Avg. ▪ Trailing 8-Month placements increased 2.7% vs. year ago. 4 Source: USDA
Slide 5: Broiler Layer Flock Increased Y/Y In Q3; Eggs/100 Below Year Ago level
Broiler Layer Flock Increased Y/Y In Q3; Eggs/100 Below Year Ago level Broiler Type Hatching Layers Eggs/100 66,000 2,000 1,950 65,000 1,900 64,000 1,850 63,000 Head (000) 1,800 Eggs 62,000 1,750 1,700 61,000 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 De
Slide 6: Egg Sets -2.1% YoY in Q3-23; Hatchability Trended Below Q3-22 Levels
Egg Sets -2.1% YoY in Q3-23; Hatchability Trended -0.8% Below Q3-22 Levels Chicken Egg Sets Chicken Hatchability by Week - USDA by Week - USDA 83.0% 250,000 245,000 82.0% 240,000 81.0% 235,000 80.0% Thousands of Eggs 230,000 79.0% % 225,000 78.0% 220,000 77.0% 215,000 76.0% 210,000 75.0% 205,000 74.
Slide 7: Broiler Placements Down -2.1% Y/Y in Q3-23
Broiler Placements Down -2.1% Y/Y in Q3-23 Chicken Broiler Placed by Week- USDA 200,000 195,000 190,000 185,000 Head (000) 180,000 175,000 170,000 165,000 160,000 5 Year Range 5 Yr. Avg. 2021 2022 2023 7 Source: USDA
Slide 8: Increased Head Counts in 4.26-6.25 LBS Segment YTD
Increased Head Counts in 4.26-6.25 LBS Segment YTD; Y/Y Reductions in Q3 For 6.26-7.75 LBS Segment Head Processed by Size 100% 90% 21.4% 20.9% 21.2% 21.7% 23.3% 24.1% 25.7% 25.4% 25.6% 80% 70% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 60% 28.4% 29.7% 27.9% 50% 40% 32.2% 31.2% 30.4% 30.2% 28.7% 27.4% 26.2%
Slide 9: Industry Cold Storage Supplies Ended Q3 Below Historical Average
Industry Cold Storage Supplies Ended Q3 Below Historical Average Total Chicken Inventories 1,000,000 950,000 900,000 850,000 800,000 LBS (000) 750,000 700,000 650,000 600,000 550,000 500,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2022 2023 5 Yr. Avg. ▪ Total Inventories in September is belo
Slide 10: Chicken Pricing Rebounded Briefly Before Ending Quarter In Line With Year Ago Levels
Chicken Pricing Rebounded Briefly Before Ending Quarter In Line With Year Ago Levels Jumbo Cutout 170 150 130 Cents/Lb 110 90 70 50 10/13 11/10 1/6 2/3 3/3 3/31 4/28 5/26 6/23 7/21 8/18 9/15 12/8 5 Year Range 5 Yr. Avg. 2021 2022 2023 Source: PPC, EMI 10
Slide 11: BSB and Tenders Benefitted From Counter-Seasonal Price Movement in Q3
BSB and Tenders Benefitted From Counter-Seasonal Price Movement in Q3; Wings Improved Steadily USDA Boneless/Skinless Breast USDA Tenders 400.00 375.00 350.00 325.00 300.00 275.00 250.00 Cents/Lb Cents/Lb 200.00 225.00 150.00 175.00 100.00 125.00 50.00 0.00 75.00 1/7 2/6 3/8 4/7 5/7 6/6 7/6 8/5 9/4
Slide 12: WOG Values Moving Seasonally
WOG Values Moving Seasonally 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 10/13 10/27 11/10 11/24 12/22 1/6 2/3 3/3 6/9 7/7 8/4 9/1 7/21 1/20 2/17 3/17 3/31 4/14 4/28 5/12 5/26 6/23 8/18 9/15 9/29 12/8 5 Year Range 5 Yr. Avg. 2021 2022 2023 12 Source: E
Slide 13: Corn Dynamics
Corn Dynamics ▪ Historically large planted area contributed to a recovery in US corn ending stocks for the ‘23/24 crop year, despite below-trend yields. Production is forecast at 15.064B bu, the largest since ‘16/17. Ending stocks are forecast at a comfortable 2.111B bu. ▪ The large US production fo
Slide 14: Soybean Dynamics
Soybean Dynamics ▪ US soybean production is estimated 3.9% lower year-on-year due to lower acreage with similar yields, translating into another year with historically low ending stocks. ▪ Globally, however, last year’s record crop in Brazil continues to price competitively into export markets throu
Slide 15: Fiscal Year 2023 Capital Spending
Fiscal Year 2023 Capital Spending Capex (US$M) ▪ Continued investment in strategic and automation projects will support Key Customers’ growth and emphasize our focus on further diversification of our portfolio and operational improvements Source: PPC 15
Slide 16: Appendix
7) 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 24, September 25, September 24, September 25, 2023 2022 2023 2022 (In thousands) Net income $ 121,567 $ 258,999 $ 188,106 $ 901,580 Add
Slide 19: 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 24, 2023 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine months ended September
Slide 20: 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 21: 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 24, 2023 September 25, 2022 U.K. & U.K. & U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) N
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) Nine Months Ended Nine Months Ended September 24, 2023 September 25, 2022 U.K. & U.K. & U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) Net
Slide 23: 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 24: Appendix: Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin
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 25: 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 (loss) attributable to Pilgrim's certain items of expense and deducting from Net income (loss) attributable to Pilgrim's certain items o
Slide 26: 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 27: Appendix: 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 24, 2023 September 25, 2022 September 24, 2023 September 25, 2022 (In thousands) Sources of net sales