Pilgrim's Pride Corporation · NASDAQ:PPC

Pilgrim's Pride — Q4 2020 Earnings Presentation

28 slides from Pilgrim's Pride's earnings presentation, February 2021

  1. Slide 1: Financial Results for Fourth Quarter and Year Ended Dec 27, 2020

    Financial Results for Fourth Quarter and Year Ended Dec 27, 2020 Pilgrim’s Pride Corporation (NASDAQ: PPC)

  2. 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

  3. Slide 3: Pullet Placements Flat in Q4

    Pullet Placements Flat in Q4 12,000 Intended Pullet Placements 10,000 8,000 6,000 Thousand Head 4,000 2,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 5 Yr. Avg.  Trailing 8-Month placements up -0.4% vs. year ago.  Pullet growth in 2019 and early 2020 mostly to support new capacit

  4. Slide 4: Hatching Layer Flock and Egg Productivity Modestly Up

    Hatching Layer Flock and Egg Productivity Modestly Up Broiler Type Hatching Layers Eggs/100 64,000 2,000 1,950 62,000 1,900 60,000 1,850 1,800 Head (000) 58,000 Eggs 1,750 56,000 1,700 54,000 1,650 1,600 52,000 1,550 50,000 1,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Ju

  5. Slide 5: Hatchery Utilization Partially Recovered but Remained Below 2019 Levels Since April

    Hatchery Utilization Partially Recovered but Remained Below 2019 Levels Since April 94.0% 92.0% 90.0% 88.0% 86.0% % 84.0% 82.0% 80.0% 78.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 5 Yr. Avg. Source: Agristats 5

  6. Slide 6: Average Weekly Egg Sets Down 0.6% in Q4; Hatchability Still Below 2019 Levels

    Average Weekly Egg Sets Down 0.6% in Q4; Hatchability Still Below 2019 Levels and Historical Chicken Egg Sets Chicken Hatchability by Week - USDA by Week - USDA 250,000 83% 240,000 82% 230,000 81% Thousands of Eggs 220,000 80% 79% % 210,000 78% 200,000 77% 190,000 76% 180,000 75% 170,000 74% 5 Year

  7. Slide 7: Average Broiler Placements Down 0.9% in the Quarter and Started 2021 Below Previous Year

    Average Broiler Placements Down 0.9% in the Quarter and Started 2021 Below Previous Year Chicken Broiler Placed by Week- USDA 195,000 190,000 185,000 180,000 Head (000) 175,000 170,000 165,000 160,000 5 Year Range 2019 2020 2021 5 Yr. Avg. Source: USDA 7

  8. Slide 8: Growth Remains Concentrated in Big Bird Categories and Continuing Reduction in Small Birds

    Growth Remains Concentrated in Big Bird Categories and Continuing Reduction in Small Birds Head Processed by Size 15.1% 15.6% 18.3% 19.7% 21.4% 20.9% 21.2% 21.7% 23.3% 24.1% 26.5% 19.1% 19.3% 19.4% 19.3% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 24.2% 42.9% 40.7% 35.5% 35.0% 32.2% 31.2% 30.4% 30.2% 28.7%

  9. Slide 9: Inventories Continued to Decline vs. Year Ago Levels

    Inventories Continued to Decline vs. Year Ago Levels Total Chicken Inventories 1,100,000 1,000,000 900,000 800,000 LBS (000) 700,000 600,000 500,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 2020 5 Yr. Avg.  Breast meat inventories continue to pace above year ago levels.  LQ invent

  10. Slide 10: Cutout Tracked to High-End of Ranges During Q4-20 And Currently Above 5-Yr Range

    Cutout Tracked to High-End of Ranges During Q4-20 And Currently Above 5-Yr Range 100.00 90.00 80.00 Cents/Lb 70.00 60.00 50.00 40.00 1/8 2/5 3/5 4/2 7/9 8/6 9/3 1/7 10/15 10/29 11/12 11/26 12/10 12/24 1/22 2/19 3/19 4/16 4/30 5/14 5/28 6/11 6/25 7/23 8/20 9/17 10/1 5 Year Range 2019 2020 2021 5 Yr.

  11. Slide 11: BSB Recovered Well, Tenders and Wings Remaining Strong While LQs Beginning To Recover

    BSB Recovered Well, Tenders and Wings Remaining Strong While LQs Beginning To Recover USDA Boneless/Skinless Breast NE USDA Tenders NE 175.00 235.00 165.00 215.00 155.00 195.00 145.00 165.25 135.00 175.00 Cents/Lb Cents/Lb 125.00 112.94 155.00 115.00 135.00 105.00 115.00 95.00 85.00 95.00 75.00 75.0

  12. Slide 12: WOG Pricing Inside Normal Range in Q4-20; Q1 Prices Nearing the 5-Yr Range

    WOG Pricing Inside Normal Range in Q4-20; Q1 Prices Nearing the 5-Yr Range EMI WOG 2.5-4.0 LBS 120.0 110.0 100.0 90.0 Cents/Lb. 80.0 81.2 70.0 60.0 50.0 40.0 1/17 1/31 2/14 2/28 3/13 3/27 4/10 4/24 5/22 6/19 7/17 7/31 8/14 8/28 9/11 9/25 10/9 11/6 12/4 1/3 5/8 6/5 7/3 10/23 11/20 12/18 5 Year Range

  13. Slide 13: Corn Stocks Tighten Up with Increased Exports

    Corn Stocks Tighten Up with Increased Exports  USDA continues to lower corn ending stocks, tightening to stocks similar to levels seen in 2013  The market continues to watch the corn export pace with tighter stocks/use Source: USDA 13

  14. Slide 14: Soybean Stocks Tighten Up with Increased Exports

    Soybean Stocks Tighten Up with Increased Exports  USDA decreases soybean ending stocks in 2020 to levels previously seen before the trade war  U.S. exports of soybeans continues to be a driving factor for tightening stocks Source: USDA 14

  15. Slide 15: Fiscal Year 2020 Financial Review

    Fiscal Year 2020 Financial Review  U.S.: Well-balanced performance, diversified portfolio and Key Customer strategy Main Indicators ($M) FY-20 FY-19 minimized channel demand disruption; MX: Strong rebound from 1H on much more Net Revenue 12,091.9 11,409.2 balanced supply/demand conditions, Gross Pr

  16. Slide 16: Fourth Quarter 2020 Financial Review

    Fourth Quarter 2020 Financial Review  U.S.: Key Customer partnerships continue to deliver growth, minimize disruption and Main Indicators ($M) Q4-20 Q4-19 improve consistency; MX: Strong continues on much more balanced supply/demand Net Revenue 3,117.8 3,063.5 conditions, improving macro; UK/Europe

  17. Slide 17: Fiscal Year 2020 Capital Spending

    Fiscal Year 2020 Capital Spending Capex Capex (US$M) (US$M)  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 de-emphasize our exposu

  18. Slide 18: Investor Relations Contact

    Investor Relations Contact Investor Relations: Dunham Winoto Investor Relations E-mail: IRPPC@pilgrims.com Address: 1770 Promontory Circle Greeley, CO 80634 USA Website: www.pilgrims.com 18

  19. Slide 19: APPENDIX

    APPENDIX = All about great taste. 19

  20. Slide 20: 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

  21. Slide 21: 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 27, December 29, December 27, December 29, 2020 2019 2020 2019 (In thousands) Net income $ 330 $ 92,235 $ 95,070 $ 456,536 Add: Interest expens

  22. Slide 22: Appendix: Reconciliation of LTM Adjusted EBITDA

    Appendix: Reconciliation of LTM Adjusted EBITDA The summary unaudited consolidated income statement data for the twelve months ended December 27, 2020 (the LTM Period) have been calculated by summing each of the unaudited three month periods within the audited year ended December 27, 2020. PILGRIM'S

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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 the U.S. is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful suppl

  26. Slide 26: 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. Adju

  27. Slide 27: 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

  28. Slide 28: 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 27, December 29, December 27, December 29, 2020 2019 2020 2019 (In thousands) Sources of net sales by country of origin: U.S. $ 1,

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