Slide 1: Financial Results for Fourth Quarter Ended December 31st, 2023
Financial Results for Fourth Quarter Ended December 31st, 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: Fourth Quarter 2023 Financial Review
Fourth Quarter 2023 Financial Review ▪ U.S.: Significant Year-over-Year (YoY) improvement in commodity market pricing and operational Main Indicators ($MM) Q4 2023 Q4 2022 improvements benefited Big Bird business; while Case Ready, Small Bird and Prepared Foods improved Net Revenue 4,528.3 4,127.4 Y
Slide 4: Pullet Placements +3.4% Y/Y in Q4-2023; Up 3.6% YTD
Pullet Placements +3.4% Y/Y in Q4-2023; Up 3.6% 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 6.7% vs. year ago. 4 Source: USDA
Slide 5: Broiler Layer Flock Increased Y/Y In Q4; Eggs/100 On Par
Broiler Layer Flock Increased Y/Y In Q4; Eggs/100 On Par With Year Ago Level In Q4 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 Se
Slide 6: Egg Sets -1.6% YoY in Q4-23; Hatchability Above Q4-22
Egg Sets -1.6% YoY in Q4-23; Hatchability 0.2% Above Q4-22 Levels Chicken Egg Sets Chicken Hatchability by Week - USDA by Week - USDA 250,000 83.0% 245,000 82.0% 240,000 81.0% 235,000 80.0% Thousands of Eggs 230,000 79.0% % 225,000 220,000 78.0% 215,000 77.0% 210,000 76.0% 205,000 75.0% 200,000 74.0
Slide 7: Broiler Placements Down -2.4% Y/Y in Q4-23
Broiler Placements Down -2.4% Y/Y in Q4-23 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. 2022 2023 2024 7 Source: USDA
Slide 8: Increased Head Counts in 4.26-6.25 and >7.75 LBS Segment YTD
Increased Head Counts in 4.26-6.25 and >7.75 LBS Segment YTD; Y/Y Reductions in Q4 For Middle LBS Segments Head Processed by Size 100% 90% 21.4% 20.9% 21.2% 21.7% 23.3% 24.1% 25.7% 25.4% 26.4% 28.8% 80% 70% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 60% 28.4% 29.7% 27.6% 25.6% 50% 40% 32.2% 31.2% 30.4% 30.
Slide 9: Industry Cold Storage Supplies Ended Q4 On par with Historical Average
Industry Cold Storage Supplies Ended Q4 On par with 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 December is
Slide 10: Chicken Pricing in Q4 Trended Above Year Ago
Chicken Pricing in Q4 Trended Above Year Ago And In Line With 5 Year Average Jumbo Cutout 170 150 130 Cents/Lb 110 90 70 50 4/28 10/13 11/10 3/31 5/26 6/23 7/21 8/18 9/15 12/8 1/6 2/3 3/3 5 Year Range 5 Yr. Avg. 2022 2023 2024 10 Source: PPC, EMI
Slide 11: BSB and Tenders Declined Seasonally in Q4; Wings and LQ Steady
BSB and Tenders Declined Seasonally in Q4; Wings and LQ Remained Steady in Q4 425.00 USDA Boneless/Skinless Breast USDA Tenders 375.00 375.00 325.00 325.00 Cents/Lb 275.00 275.00 Cents/Lb 225.00 225.00 175.00 175.00 125.00 125.00 75.00 75.00 1/7 2/6 3/8 4/7 5/7 6/6 7/6 8/5 9/4 6/6 1/7 2/6 3/8 4/7 5/
Slide 12: WOG Values Climbed And Ended Q4 Above Year Ago
WOG Values Climbed And Ended Q4 Above Year Ago 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 6/9 10/13 10/27 11/10 11/24 12/22 1/6 2/3 3/3 7/7 8/4 9/1 8/18 1/20 2/17 3/17 3/31 4/14 4/28 5/12 5/26 6/23 7/21 9/15 9/29 12/8 5 Year Range 5 Yr. Avg. 2022 2023
Slide 13: Corn Dynamics
Corn Dynamics ▪ The ‘23/24 US corn crop was record large at 15.3B bu., rebuilding ending stock forecasts to a historically robust levels. ▪ Current USDA forecasts suggest Brazil and Argentina will have record large corn production when combined. Globally, these forecasts contribute to ‘23/24 ending
Slide 14: Soybean Dynamics
Soybean Dynamics ▪ ’23/24 US soybean ending stock levels are forecast approximately 19% higher year-on-year, benefitting from a positive adjustment to final US soybean yields by the USDA in January and a more recent adjustment lower of US soybean export demand. ▪ South American production, however,
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 (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
Slide 18: Appendix: Reconciliation of Adjusted EBITDA
Appendix: Reconciliation of Adjusted EBITDA PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Three Months Ended Year Ended December 31, December 25, December 31, December 25, 2023 2022 2023 2022 (In thousands) Net income (loss) $ 134,211 $ (155,042) $ 322,317 $ 746,538 Add:
Slide 19: Appendix: Reconciliation of LTM Adjusted EBITDA
Appendix: Reconciliation of LTM Adjusted EBITDA The summary unaudited consolidated income statement data for the 12 months ended December 31, 2023 (the LTM Period) have been calculated by summing each of the unaudited three month periods within the audited year ended December 31, 2023. PILGRIM'S PRI
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 December 31, 2023 December 25, 2022 U.K. & U.K. & U.S. Mexico Total U.S. Mexico Total Europe Europe (In thousands) (In thousands) Net
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) Year Ended Year Ended December 31, 2023 December 25, 2022 U.K. & U.K. & U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) Net income (loss) $
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 Geographic Data (Unaudited) Three Months Ended Year Ended December 31, December 25, December 31, December 25, 2023 2022 2023 2022 (In thousands) Sources of net sales by country of origin: U.S. $ 2,