Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q1 2023 Earnings Presentation
24 slides from Pilgrim's Pride's earnings presentation, Apr 27, 2023
Slide 1: Financial Results for First Quarter Ended March 26th, 2023
Financial Results for First Quarter Ended March 26th, 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: First Quarter 2023 Financial Review
First Quarter 2023 Financial Review ▪ U.S.: Significant year-over-year decline in commodity market pricing impacted Big Bird business; however, diversified portfolio across bird sizes and Key Main Indicators ($M) Q1 2022 Q1 2023 Customer strategy helped to reduce negative impact; UK/Europe: Signific
Slide 4: Corn Stocks Decrease
Corn Stocks Decrease ▪ Recent USDA reports have held few surprises in terms of the current crop year balance sheet. Ending stocks estimates have been steady at a historically lean 1.342B bushels. ▪ US exports for the first 6 months of the crop year were down approximately 37% year on year as: ▪ Braz
Slide 5: Soybean Stocks Decrease
Soybean Stocks Decrease ▪ Q1 saw diverging soybean production estimates across South America. Brazil is currently harvesting a record crop, while Argentina’s crop is down 19Mmt vs last year. South American production is up approximately 13.5Mmt net, but well off early expectations. ▪ While global be
Slide 6: Fiscal Year 2023 Capital Spending
Fiscal Year 2023 Capital Spending Capex (US$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 6
Slide 7: Pullet Placements Down 3.8% in Q1 of 2023
Pullet Placements Down 3.8% in Q1 of 2023 Intended Pullet Placements 10,000 8,000 6,000 4,000 Thousand Head 2,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (2,000) 2022 2023 5 Yr. Avg. ▪ Trailing 8-Month placements down 7.0% vs. year ago. Source: USDA 7
Slide 8: Broiler Layer Flock Increased Year Over Year In Q1; Eggs/100 Below 2022 Levels
Broiler Layer Flock Increased Year Over Year In Q1; Eggs/100 Below 2022 Levels 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 Oc
Slide 9: Egg Sets +0.4% Year Over Year in Q1 of 23; Hatchability Below
Egg Sets +0.4% Year Over Year in Q1 of 23; Hatchability -0.1% Below Q1 of 2022 Levels Chicken Egg Sets by Week - USDA Chicken Hatchability 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 % 78.0% 220,000 77.0% 215,000 76.0% 210,000 75.0%
Slide 10: Broiler Placements Grew 0.5% Year Over Year in Q1 of 2023
Broiler Placements Grew 0.5% Year Over Year in Q1 of 2023 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 Source: USDA 10
Slide 11: Industry Head Counts Continue To Shift Away from <4.25 Segment
Industry Head Counts Continue To Shift Away from <4.25 Segment Head Processed by Size 100% 90% 21.4% 20.9% 21.2% 21.7% 23.3% 24.1% 25.7% 25.4% 25.5% 80% 70% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 60% 28.4% 29.7% 27.7% 50% 40% 32.2% 31.2% 30.4% 30.2% 28.7% 27.4% 26.2% 27.6% 30.4% 30% 20% 25.5% 25.3% 24.
Slide 12: Industry Cold Storage Supplies Returned Near Historical Averages in Q1
Industry Cold Storage Supplies Returned Near Historical Averages in Q1 Total Chicken Inventories 1,000,000,000 950,000,000 900,000,000 850,000,000 800,000,000 750,000,000 700,000,000 650,000,000 600,000,000 550,000,000 500,000,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2022 2023 5 Yr. Avg.
Slide 13: Chicken Pricing Climbed Seasonally Yet Below Year Average
Chicken Pricing Climbed Seasonally Yet Below 5 Year Average Jumbo Cutout 170 150 130 Cents/Lb 110 90 70 50 1/6 2/3 3/3 3/31 4/28 5/26 6/23 7/21 8/18 9/15 12/8 10/13 11/10 5 Year Range 5 Yr. Avg. 2021 2022 2023 Source: PPC, EMI 13
Slide 14: LQ Climbing Above Range; BSB Recovery Stagnated, Tenders Improve
LQ Climbing Above 5 year range; BSB recovery has stagnated, while Tenders Improve and Wings sluggish 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 3/8 1/7 2/6 4/7 5/7 6/6 7/6 8/
Slide 15: WOG Values Climbing Seasonally
WOG Values Climbing 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 1/20 2/17 3/17 3/31 4/14 4/28 5/12 5/26 6/23 7/21 8/18 9/15 9/29 12/8 5 Year Range 5 Yr. Avg. 2021 2022 2023 Source: EM
Slide 16: Appendix
7) pilgrims APPENDIX 16
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 March 26, 2023 March 27, 2022 (In thousands) Net income $ 5,631 $ 280,560 Add: Interest expense, net(a) 39,062 35,022 Income tax expense (benefit) (8,840) 75,219 D
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 March 26, 2023 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the three months ended March 27, 20
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 they are frequently used by securities
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 March 26, 2023 March 27, 2022 U.K. & U.K. & U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) Net incom
Slide 22: 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 23: 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 24: 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 March 26, 2023 March 27, 2022 (In thousands) Sources of net sales by geographic region of origin: U.S. $ 2,432,568 $ 2,581,208 U.