Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q4 2024 Earnings Presentation
29 slides from Pilgrim's Pride's earnings presentation, Feb 13, 2025
Slide 1: Financial Results For The Fourth Quarter Ended December 29th 2024
Financial Results For The Fourth Quarter Ended December 29th 2024 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 2024 Financial Review
Fourth Quarter 2024 Financial Review ▪ U.S.: Year-over-year (YoY) increase in Main Indicators ($MM) Q4 2024 Q4 2023 commodity market pricing, moderating input costs and operational improvements positively Net Revenue 4,372.0 4,528.3 impacted Big Bird business; along with growth with Key Customers in
Slide 4: Pullet Placements Declined Y/Y in Q4-2024
Pullet Placements Declined Y/Y in Q4-2024 Given Reduction in December Intended Pullet Placements 12,000 10,000 8,000 Thousand Head 6,000 4,000 2,000 - Jan ▪ Trailing Feb 8-month Mar Apr placements May Junincreased Jul 1.6% Aug vs. year Sep ago. Oct Nov Dec 2023 2024 5 Yr. Avg. 4 Source: USDA
Slide 5: Broiler Layer Flock Decreased Y/Y in Q4-24; Eggs/100 Increased Y/Y
Broiler Layer Flock Decreased Y/Y in Q4-24; Eggs/100 Increased Y/Y in Q4-24 Broiler Type Hatching Layers Eggs/100 66,000 2,000 1,950 64,000 1,900 62,000 1,850 60,000 Head (000) 1,800 Eggs 58,000 1,750 1,700 56,000 1,650 54,000 1,600 52,000 1,550 50,000 1,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct N
Slide 6: Egg Sets Increased 4.2% YoY in Q4-24; Hatchability Below Q4-23
Egg Sets Increased 4.2% YoY in Q4-24; Hatchability -0.6% Below Q4-23 Levels Chicken Eggs Set by Week - USDA Chicken Hatchability by Week - USDA 255,000 82% 250,000 81% 245,000 80% Hatchability (%) 240,000 Eggs (000) 79% 235,000 78% 230,000 77% 225,000 220,000 76% 215,000 75% 34 49 10 13 16 19 22 25
Slide 7: Broiler Placements Increased 3.6% Above Year-Ago Levels in Q4-24
Broiler Placements Increased 3.6% Above Year-Ago Levels in Q4-24 Chicken Placements by Week - USDA 200,000 195,000 190,000 Heads (000) 185,000 180,000 175,000 23 31 39 47 1 3 5 7 9 11 13 15 17 19 21 25 27 29 33 35 37 41 43 45 49 51 5-yr Range 5-yr Avg 2023 2024 2025 7 Source: USDA
Slide 8: Reduced Head Counts in Small Bird Debone Segment in Q4-24
Reduced Head Counts in Small Bird Debone Segment in Q4-24 Head Processed by Size 100% 90% 21.2% 21.7% 23.3% 24.1% 25.7% 25.4% 26.4% 27.3% 80% 70% 23.6% 25.4% 26.2% 27.6% 60% 28.4% 29.7% 27.6% 27.4% 50% 40% 30.4% 30.2% 28.7% 27.4% 26.2% 29.4% 30% 27.6% 28.5% 20% 24.8% 22.7% 10% 21.8% 20.9% 19.7% 17.3
Slide 9: Industry Cold Storage Supplies in Q4-24 Continue Below YA and 5-Year Average
Industry Cold Storage Supplies in Q4-24 Continue Below YA and 5-Year Average Total Chicken Inventories Frozen Chicken Inventory (000 LBS) Part Dec-23 Nov-24 Dec-24 Y/Y Change M/M Change 950,000 Broilers 12,842 10,801 9,454 -26.4% -12.5% 900,000 Hens 6,625 4,295 4,502 -32.0% 4.8% Breast Meat 248,625
Slide 10: Jumbo Cutout Pricing Trended Above Year Ago and 5-year Average in Q4-24
Jumbo Cutout Pricing Trended Above Year Ago and 5-year Average in Q4-24 Jumbo Cutout 160 140 120 Cents/Lb 100 80 60 40 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 5 Year Range 5 Yr. Avg. 2023 2024 2025 10 Source: PPC, EMI
Slide 11: BSB and Tenders Improved Seasonally, Wings Outperformed, LQ Exceeded
BSB and Tenders Improved Seasonally, Wings outperformed previous year, LQ exceeded in Q4-24 USDA Boneless/Skinless Breast USDA Tenders 375.00 375.00 325.00 325.00 275.00 275.00 Cents/Lb Cents/Lb 225.00 225.00 175.00 175.00 125.00 125.00 75.00 75.00 7 1 3 5 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37
Slide 12: WOG Pricing Steady Throughout Q4-24, above 5-YA
WOG Pricing Steady Throughout Q4-24, above 5-YA 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 1/6 8/4 2/3 3/3 6/9 7/7 9/1 3/17 5/26 12/8 1/20 2/17 3/31 4/14 4/28 5/12 6/23 7/21 8/18 9/15 9/29 10/13 10/27 11/10 11/24 12/22 5 Year Range 5 Yr. Avg. 2023 2024
Slide 13: Corn Dynamics
Corn Dynamics US Corn Ending Stocks (MBUs) World Corn Endings Stocks (MMT) 3,000 315 313 311 2,500 310 306 304 1,919 305 2,000 1,763 1,540 300 1,500 1,377 1,360 1,235 295 293 293 1,000 290 500 285 0 280 19/20 20/21 21/22 22/23 23/24 24/25p 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 ▪ US global
Slide 14: Soybean Dynamics
Soybean Dynamics US Soybean Ending Stocks (MBU) World Soy Ending Stocks (MMT) 600 140 128 525 120 112 500 100 99 101 97 380 100 400 342 80 300 257 274 264 60 200 40 100 20 0 0 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 ▪ US ending stocks still gro
Slide 15: Fiscal Year 2024 Capital Spending
Fiscal Year 2024 Capital Spending Capex (US$M) ▪ Continued investment in strategic projects will support Key Customers’ growth and emphasize our focus on further diversification of our portfolio and operational improvements 15 Source: PPC
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 29, December 31, December 29, December 31, 2024 2023 2024 2023 (In thousands) Net income $ 235,772 $ 134,211 $ 1,087,223 $ 322,317 Add: Interes
Slide 19: Appendix: Reconciliation of Adjusted EBITDA
Appendix: Reconciliation of Adjusted EBITDA a. Interest expense, net, consists of interest expense less interest income. b. Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remea
Slide 20: 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 29, 2024 (the LTM Period) have been calculated by summing each of the unaudited three month periods within the audited year ended December 29, 2024. PILGRIM'S PRI
Slide 21: 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 22: Appendix: Reconciliation of Adjusted EBITDA by Segment
Appendix: Reconciliation of Adjusted EBITDA by Segment Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance wi
Slide 23: 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 29, 2024 December 31, 2023 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) Net income $ 719,595 $ 176,421 $
Slide 24: Appendix: Reconciliation of Adjusted EBITDA
Appendix: Reconciliation of Adjusted EBITDA a. Interest expense, net, consists of interest expense less interest income. b. Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remea
Slide 25: 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 26: 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 27: 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 attributable to Pilgrim's certain items of expense and deducting from Net income attributable to Pilgrim's certain items of income, as s
Slide 28: 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 29: 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 Year Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 (In thousands) Sources of net sales by geograp