Pilgrim's Pride Corporation · NASDAQ:PPC

Pilgrim's Pride — Q3 2022 Earnings Presentation

26 slides from Pilgrim's Pride's earnings presentation, Oct 27, 2022

  1. Slide 1: Financial Results for Third Quarter Ended September 25, 2022

    Pilgrim’s Pride Corporation (NASDAQ: PPC) Financial Results for Third Quarter Ended September 25, 2022

  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: Third Quarter 2022 Financial Review

    Third Quarter 2022 Financial Review  U.S.: Diversified portfolio across bird sizes and Key Customer strategy proved differentiating factor during changing market conditions; UK/Europe: Despite challenging consumer environment and extensive inflation, sequential quarter-over-quarter and year-over-ye

  4. Slide 4: Corn Stocks Decrease

    Corn Stocks Decrease 4  USDA’s Sept. 1 grain stocks lowered the crop year ‘21/22 ending stocks to 1.38B bu, down 145M bu from the prior USDA balance sheet. The loss was partially attributed to a downward adjustment in last year’s crop production.  For the ‘22/23 crop, USDA yield estimates have sli

  5. Slide 5: Soybean Stocks Decrease

    Soybean Stocks Decrease 5  Crop year ‘21/22 ending stocks on soybeans were reported 7% higher year-on-year, and last year’s crop production was revised up 30.2M bu.  However, the most recent USDA forecast for the’22/23 soybean crop revised yields down to 49.8 bu/ac.  Similar to grains, South Amer

  6. Slide 6: Fiscal Year 2022 Capital Spending

    Fiscal Year 2022 Capital Spending  Continued strong financial results have enabled us to maintain and direct more capital spending towards identified projects with rapid payback and structural improvements.  New strategic and automation projects will support Key Customers’ growth and emphasize our

  7. Slide 7: Pullet Placements Down 13% in Q3-2022

    - 2,000 4,000 6,000 8,000 10,000 12,000 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Th ou sa nd H ea d 2021 2022 5 Yr. Avg.  Trailing 8-Month placements down 3.4% vs. year ago.  No major capacity changes expected in 2022. Pullet Placements Down 13% in Q3-2022; Placements Down 4.7% YTD 2022 Sou

  8. Slide 8: Broiler Layer Flock Increased Y/Y in Q3; Eggs/100 Pacing Above 2021 Levels

    1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850 1,900 1,950 2,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Eg gs Eggs/100 Source: USDA  Broiler layer flock up 0.7% YoY in Q3-22.  Eggs/100 up 0.6% YoY in Q3-22. Broiler Layer Flock Increased Y/Y in Q3; Eggs/100 Pacing Above 2021 Levels 50,000

  9. Slide 9: Hatchery Utilization Remains Elevated, Setting New Highs in Q3-22

    9 Hatchery Utilization Remains Elevated, Setting New Highs in Q3-22 Source: Agristats 80.0% 82.0% 84.0% 86.0% 88.0% 90.0% 92.0% 94.0% 96.0% 98.0% 100.0% Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec % Hatchery Utilization 2021 2022 4 Yr. Avg. - Excl 2020

  10. Slide 10: Egg Sets Above Q3-21 Levels by 3.0%; Hatchability Pacing High

    Egg Sets Above Q3-21 Levels by 3.0%; Hatchability Pacing High Above 2021 Source: USDA 10 200,000 205,000 210,000 215,000 220,000 225,000 230,000 235,000 240,000 245,000 250,000 Th ou sa nd s of E gg s Chicken Egg Sets by Week - USDA 5 Year Range 2020 2021 2022 5 Yr. Avg. 74% 75% 76% 77% 78% 79% 80%

  11. Slide 11: USDA Broiler Placements Grew 3.5% Y/Y

    Source: USDA 11 Broiler Placements Grew 3.5% Y/Y as Growth in Egg Sets Aided by Improved Hatchability 160,000 165,000 170,000 175,000 180,000 185,000 190,000 195,000 200,000 H ea d (0 00 ) Chicken Broiler Placed by Week- USDA 5 Year Range 2020 2021 2022 5 Yr. Avg.

  12. Slide 12: USDA Industry Head Counts Continue to Shift Away From <4.25 Segment

    Source: USDA 12 Industry Head Counts Continue to Shift Away From <4.25 Segment; Increased Counts in Medium Sizes 25.5% 25.3% 24.8% 22.7% 21.8% 20.9% 19.7% 17.9% 32.2% 31.2% 30.4% 30.2% 28.7% 27.4% 26.2% 27.5% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 28.4% 29.9% 21.4% 20.9% 21.2% 21.7% 23.3% 24.1% 25.7% 2

  13. Slide 13: Industry Cold Storage Supplies Back Near Historical Levels

    Source: USDA  Inventories ended September 1% above 5-year September average.  Breast meat inventories almost 30% above year ago level.  Wings inventories continue to climb and ended September 29% above September 2021.  Combined dark meat inventories (Drumsticks, Legs, LQ, Thighs, Thigh Meat) are

  14. Slide 14: Cutout Declined Sharply, Within 5 Year Range in Q3

    Source: PPC, EMI 14 50.00 60.00 70.00 80.00 90.00 100.00 110.00 120.00 130.00 140.00 150.00 160.00 1/ 7 1/ 21 2/ 4 2/ 18 3/ 4 3/ 18 4/ 1 4/ 15 4/ 29 5/ 13 5/ 27 6/ 10 6/ 24 7/ 8 7/ 22 8/ 5 8/ 19 9/ 2 9/ 16 9/ 30 10 /1 4 10 /2 8 11 /1 1 11 /2 5 12 /9 12 /2 3 Ce nt s/ Lb EMI Jumbo Cutout Value 5 Year

  15. Slide 15: BSB, Tenders LQ and Wings Trended Downwards in Q3

    BSB, Tenders LQ and Wings Trended Downwards in Q3; Wings Below 5-Year Range 15 110.05100.00 150.00 200.00 250.00 300.00 350.00 1/ 7 2/ 6 3/ 8 4/ 7 5/ 7 6/ 6 7/ 6 8/ 5 9/ 4 10 /4 11 /3 12 /3 C en ts /L b USDA Whole Wings 5 Year Range 2020 2021 2022 Wings 2022 National 5 Year Average 38.16 15.00 20.00

  16. Slide 16: WOGs Experienced Seasonal Decline But Has Stabilized

    16 WOGs Experienced Seasonal Decline But Has Stabilized Source: EMI 118.5 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 1/ 7 1/ 21 2/ 4 2/ 18 3/ 4 3/ 18 4/ 1 4/ 15 4/ 29 5/ 13 5/ 27 6/ 10 6/ 24 7/ 8 7/ 22 8/ 5 8/ 19 9/ 2 9/ 16 9/ 30 10 /1 4 10 /2 8 11 /1 1 11 /2 5 12 /9 12 /2 3 Ce nt

  17. Slide 17: Appendix

    pilgrims APPENDIX 17

  18. Slide 18: PPC Appendix: Reconciliation of Adjusted EBITDA

    Source: PPC 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

  19. Slide 19: PPC Appendix: Reconciliation of Adjusted EBITDA

    Source: PPC Appendix: Reconciliation of Adjusted EBITDA (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 asset

  20. Slide 20: PPC Appendix: Reconciliation of LTM Adjusted EBITDA

    Source: PPC Appendix: Reconciliation of LTM Adjusted EBITDA The summary unaudited consolidated income statement data for the twelve months ended September 25, 2022 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine months end

  21. Slide 21: PPC Appendix: Reconciliation of EBITDA Margin

    Source: PPC 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 se

  22. Slide 22: PPC Appendix: Reconciliation of Adjusted EBITDA by Segment

    Source: PPC Appendix: Reconciliation of Adjusted EBITDA by Segment (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 reme

  23. Slide 23: PPC Appendix: Reconciliation of Adjusted EBITDA by Segment

    Source: PPC Appendix: Reconciliation of Adjusted EBITDA by Segment 23 PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Nine Months Ended Nine Months Ended September 25, 2022 September 26, 2021 U.S. U.K. & Europe Mexico Total U.S. U.K. & Europe Mexico Total (In thousands) (In

  24. Slide 24: PPC Appendix: Reconciliation of GAAP EPS to Adjusted EPS

    Source: PPC 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 abou

  25. Slide 25: PPC Appendix: Reconciliation of GAAP EPS to Adjusted EPS

    Source: PPC 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 abou

  26. Slide 26: PPC Appendix: Supplementary Selected Segment and Geographic Data

    Source: PPC Appendix: Supplementary Selected Segment and Geographic Data 26 PILGRIM'S PRIDE CORPORATION Supplementary Selected Segment and Geographic Data (Unaudited) Three Months Ended Nine Months Ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 (In thousands) Sourc

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