Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q3 2021 Earnings Presentation
29 slides from Pilgrim's Pride's earnings presentation, Oct 28, 2021
Slide 1: Financial Results for Third Quarter Ended September 26, 2021
Pilgrim’s Pride Corporation (NASDAQ: PPC) To be the BEST Financial Results for Third Quarter Ended September 26, 2021
Slide 2: Cautionary Notes and Forward-Looking Statements
To be the BEST 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 stat
Slide 3: Pullet Placements Up 3.2% Y/Y in Q3 2021
To be the BEST Trailing 8-Month placements up 3.8% vs. year ago. Pullet Placements Up 3.2% Y/Y in Q3 2021; YTD 2021 Placements +4.2% vs. 2020 Source: USDA 3 Intended Pullet Placements - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th
Slide 4: Hatching Layers Declining Seasonally; Eggs/100 Continue to Improve vs. 2020 Levels
To be the BEST Hatching Layers Declining Seasonally; Eggs/100 Continue to Improve vs. 2020 Levels Source: USDA 4 Broiler layer flock up +3.8% YTD 2021 vs. 2020. Broiler layer flock in Q3 averaged 2.7% greater than year ago levels. Eggs/100 +0.8% Y/Y in September, while the YTD average is +0.5%
Slide 5: Hatchery Utilization Continues to Outpace the 4-Year Pre-COVID Average
To be the BEST 5 Hatchery Utilization Continues to Outpace the 4-Year Pre-COVID Average Source: Agristats 78.0% 80.0% 82.0% 84.0% 86.0% 88.0% 90.0% 92.0% 94.0% 96.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % Hatchery Utilization 2020 2021 4 Yr. Avg. - Excl 2020
Slide 6: Egg Sets Remain Above 2020; Hatchability Worsened In Q3
To be the BEST Egg Sets Remain Above 2020 and Moving Seasonally in Q3; Hatchability Worsened In Q3 Source: USDA 6 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000 Th o u sa n d s o f E g g s Chicken Egg Sets by Week - USDA 5 Year Range 2019 2020 2021 5 Yr. Avg. 74.0% 75.0% 76.
Slide 7: Average Broiler Placements Decreased 0.8% in Q3 2021
To be the BEST Source: USDA 7 Average Broiler Placements Decreased 0.8% in Q3 2021 as Weakening Hatch Offsetting Increased Egg Sets 160,000 165,000 170,000 175,000 180,000 185,000 190,000 195,000 H e a d ( 0 0 0 ) Chicken Broiler Placed by Week- USDA 5 Year Range 2019 2020 2021 5 Yr. Avg.
Slide 8: Heavier Bird Weight Categories Continue to Gain Headcount Share
To be the BEST Source: USDA 8 Heavier Bird Weight Categories Continue to Gain Headcount Share 23.0% 24.4% 26.9% 26.1% 25.5% 25.3% 24.8% 22.7% 21.8% 20.9% 19.6% 42.9% 40.7% 35.5% 35.0% 32.2% 31.2% 30.4% 30.2% 28.7% 27.4% 26.2% 19.1% 19.3% 19.4% 19.3% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 28.4% 15.1% 15
Slide 9: Cold Storage Inventories Ended Q3 2021 17% Below September 2020
To be the BEST Cold Storage Inventories Ended Q3 2021 17% Below September 2020 Source: USDA Total inventory levels did not experience the normal seasonal growth from end of June through September, instead remaining on par with June levels. Breast meat inventories 12% below 5-year September avera
Slide 10: Cutout Remained Well Above 5-Year Range Throughout Q3 2021
To be the BEST Cutout Remained Well Above 5-Year Range Throughout Q3 2021 and Only Recently Experiencing Seasonal Decline Source: PPC, EMI 10 108.87 40.00 50.00 60.00 70.00 80.00 90.00 100.00 110.00 120.00 130.00 1 /8 1 /2 2 2 /5 2 /1 9 3 /5 3 /1 9 4 /2 4 /1 6 4 /3 0 5 /1 4 5 /2 8 6 /1 1 6 /2 5 7 /9
Slide 11: Pricing for Main Cuts Elevated Throughout Q3 2021
To be the BEST Source: USDA 11 Pricing for Main Cuts Elevated Throughout Q3 2021 39.76 20.00 25.00 30.00 35.00 40.00 45.00 50.00 1 /5 2 /4 3 /6 4 /5 5 /5 6 /4 7 /4 8 /3 9 /2 1 0 /2 1 1 /1 1 2 /1 C e n ts /L b USDA Leg Quarters NE 5 Year Range 2019 2020 2021 5 Year Average 181.47 75.00 95.00 115.00 1
Slide 12: WOG Pricing Remained Steady Throughout Q3
To be the BEST 12 WOG Pricing Remained Steady Throughout Q3 Source: EMI 100.9 60.0 70.0 80.0 90.0 100.0 110.0 120.0 1 /3 1 /1 7 1 /3 1 2 /1 4 2 /2 8 3 /1 3 3 /2 7 4 /1 0 4 /2 4 5 /8 5 /2 2 6 /5 6 /1 9 7 /3 7 /1 7 7 /3 1 8 /1 4 8 /2 8 9 /1 1 9 /2 5 1 0 /9 1 0 /2 3 1 1 /6 1 1 /2 0 1 2 /4 1 2 /1 8 C en
Slide 13: Corn Stocks Signaling Recovery
To be the BEST Corn Stocks Signaling Recovery US corn stocks are set to increase from 1.2B bushels last year to 1.5B bushels this year on higher production and lower exports USDA projects the US corn crop at 15B bushels vs. 14.1B last year on a yield of 176.5 bushels/acre Source: USDA 13
Slide 14: Soybean Stocks on the Rise
To be the BEST Soybean Stocks on the Rise US soybean stocks are forecasting to increase from 256M bushels last year to 320M bushels this year A combination of increased production and lower demand contributing to the build in stocks Source: USDA 14
Slide 15: Third Quarter 2021 Financial Review
To be the BEST Third Quarter 2021 Financial Review U.S.: QSR and Retail Deli maintaining strength while Commodity continued momentum due to better foodservice demand; labor tightness impacting product mix; Mexico: Strength continues on balanced supply/demand conditions; recent increase in imports
Slide 16: Fiscal Year 2021 Capital Spending
To be the BEST Fiscal Year 2021 Capital Spending Capex (US$M) Source: PPC 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 emphasiz
Slide 17: Investor Relations Contact
To be the BEST Investor Relations Contact Investor Relations: Julie Kegley Financial Profiles E-mail: IRPPC@pilgrims.com Address: 1770 Promontory Circle Greeley, CO 80634 USA Website: www.pilgrims.com 17
Slide 18: Appendix
APPENDIX = To be the BEST 18
Slide 19: Reconciliation of Adjusted EBITDA
To be the BEST Appendix: Reconciliation of Adjusted EBITDA 19 Source: PPC. “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
Slide 20: Reconciliation of Adjusted EBITDA
To be the BEST Appendix: Reconciliation of Adjusted EBITDA 20 a) Interest expense, net, consists of interest expense less interest income. b) The Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure a
Slide 21: Reconciliation of LTM Adjusted EBITDA
To be the BEST Appendix: Reconciliation of LTM Adjusted EBITDA 21 The summary unaudited consolidated income statement data for the twelve months ended September 26, 2021 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine mont
Slide 22: Reconciliation of EBITDA Margin
To be the BEST Appendix: Reconciliation of EBITDA Margin 22 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
Slide 23: Reconciliation of Adjusted EBITDA by Segment
To be the BEST Appendix: Reconciliation of Adjusted EBITDA by Segment 23Source: PPC PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Three Months Ended Three Months Ended September 26, 2021 September 27, 2020 U.S. U.K. & Europe Mexico Total U.S. U.K. & Europe Mexico Total (I
Slide 24: Reconciliation of Adjusted EBITDA by Segment
To be the BEST Appendix: Reconciliation of Adjusted EBITDA by Segment 24Source: PPC PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Nine Months Ended Nine Months Ended September 26, 2021 September 27, 2020 U.S. U.K. & Europe Mexico Total U.S. U.K. & Europe Mexico Total (In
Slide 25: Reconciliation of Adjusted Operating Income
To be the BEST Appendix: Reconciliation of Adjusted Operating Income 25Source: PPC 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 I
Slide 26: Reconciliation of Adjusted Operating Income
To be the BEST Appendix: Reconciliation of Adjusted Operating Income 26Source: PPC Adjusted Operating Income Margin for the U.S. is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental in
Slide 27: Reconciliation of GAAP EPS to Adjusted EPS
To be the BEST Appendix: Reconciliation of GAAP EPS to Adjusted EPS 27 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 informatio
Slide 28: Reconciliation of GAAP EPS to Adjusted EPS
To be the BEST Appendix: Reconciliation of GAAP EPS to Adjusted EPS 28 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 informatio
Slide 29: Supplementary Selected Segment and Geographic Data
To be the BEST Appendix: Supplementary Selected Segment and Geographic Data 29Source: PPC PILGRIM'S PRIDE CORPORATION Supplementary Selected Segment and Geographic Data (Unaudited) Three Months Ended Nine Months Ended September 26, 2021 September 27, 2020 September 26, 2021 September 27, 2020 (In th