Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q1 2018 Earnings Presentation
23 slides from Pilgrim's Pride's earnings presentation, May 11, 2018
Slide 1: Financial Results for First Quarter Ended April 1, 2018
Financial Results for First Quarter Ended April 1, 2018 Pilgrim’s Pride Corporation (NASDAQ: PPC)
Slide 2: Cautionary Notes and Forward-Looking Statements
Cautionary Notes and Forward-Looking Statements Statements contained in this presentation that share our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,” “estimate,” “should,” “expect,” “project,” “plan,” “imply,” “intend,” “foresee” an
Slide 3: 2018 Pullet Placements Down 1.9% YTD
2018 Pullet Placements Down 1.9% YTD IntendedIntended Pullet Pullet Placements Placements 8,500 8,000 7,500 7,000 6,500 ThousandHead 6,000 5,500 5,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018 5 year avg. Pullet placements were slightly down YOY recently but have been up through en
Slide 4: Layer Growth Needed to Counter Decline in Egg Productivity
Layer Growth Needed to Counter Decline in Egg Productivity Broiler Type Hatching Layers Egg Production per 100 Layers 60,000 2,000 59,000 1,950 58,000 1,900 57,000 1,850 56,000 1,800 55,000 1,750 Eggs 54,000 1,700 ThousandHead 53,000 1,650 52,000 1,600 51,000 1,550 50,000 1,500 Jan Feb Mar Apr May J
Slide 5: Hatchery Utilization Remains Close to Peak Levels
Hatchery Utilization Remains Close to Peak Levels Hatchery Utilization 94.00% 93.00% 92.00% 91.00% 90.00% % 89.00% 88.00% 87.00% 86.00% 85.00% 84.00% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2017 2018 5 year avg. Source: Agristats 555
Slide 6: +2.4% Increase in Egg Sets Required to Offset Lower Hatch
+2.4% Increase in Egg Sets Required to Offset Lower Hatch Chicken Egg Sets Chicken Hatchability by Week - USDA by Week - USDA 240,000 85.0% 230,000 84.0% 83.0% 220,000 82.0% 210,000 % 81.0% 200,000 80.0% 190,000 ThousandsEggs of 79.0% 180,000 78.0% 170,000 77.0% 5 Year Range 2016 2017 2018 5 year av
Slide 7: 2018 YTD Chick Placements Modestly Higher
2018 YTD Chick Placements Modestly Higher Chicken Broiler Placed by Week- USDA 190,000 185,000 180,000 175,000 170,000 Head (000) 165,000 160,000 Source: USDA 777
Slide 8: Net Increase into Jumbo Bird in 2018 on New Capacity
Net Increase into Jumbo Bird in 2018 on New Capacity Despite Some Conversions to Case Ready Head Processed by Size 100% 15% 16% 90% 18% 20% 21% 21% 21% 21% 80% 19% 19% 70% 19% 19% 21% 23% 24% 23% 60% 50% 43% 41% 35% 35% 32% 40% 31% 30% 33% 30% 20% 27% 26% 26% 25% 10% 23% 24% 25% 23% 0% 2011 2012 201
Slide 9: Cold Storage Inventories Increase Primarily Driven by Other Category
Cold Storage Inventories Increase Primarily Driven by “Other” Category Total Chicken Inventories (000 Lbs.) 950,000 900,000 850,000 800,000 750,000 700,000 650,000 600,000 550,000 500,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2017 2018 5 Year Average Overall inventories rose in Mar
Slide 10: Prices in 2018 in Line with Seasonality But Lower than Last Year
Prices in 2018 in Line with Seasonality But Lower than Last Year Cutout Value 110.00 100.00 90.00 80.00 Cents/Lb 70.93 70.00 60.00 50.00 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 10/13 10/27 11/10 11/24 12/22 5 Year Range 2016 2017 2018 5 Year
Slide 11: Tenders and Breast Close to Seasonal Norms; LQ Consistent, Wings Below
Tenders and Breast Close to Seasonal Norms; LQ Consistent, Wings Below Last 2 Yrs USDAUSDA Boneless/Skinless Boneless/Skinless Breast Breast NE NE USDAUSDA Tenders Tenders NE NE 215.00 255.00 195.00 235.00 215.00 175.00 195.00 155.00 133.57 175.00 167.82 Cents/Lb 135.00 155.00 Cents/Lb 135.00 115.00
Slide 12: Small Bird Stronger than Last Year and Above 5-yr Average
Small Bird Stronger than Last Year and Above 5-yr Average EMI WOG 2.5-4.0 LBS 120.00 110.00 101.67 100.00 90.00 Cents/Lb. 80.00 70.00 60.00 1/5 2/2 3/2 6/8 7/6 8/3 1/19 2/16 3/16 3/30 4/13 4/27 5/11 5/25 6/22 7/20 8/17 8/31 9/14 9/28 11/9 12/7 10/12 10/26 11/23 12/21 5 Year Range 2016 2017 2018 5 Ye
Slide 13: Corn Stocks to Remain at High Levels in '17/18
Corn Stocks to Remain at High Levels in ’17/18 Global Corn Stocks Excluding China Global Corn Stocks/Use (Million Metric Tons) 17.0% Excluding China 140 15.8% 130.2 16.0% 130 14.9% 118.2 15.0% 120 14.4% 109.4 14.1% 14.0% 14.2% 110 103.2 14.0% 13.7% 94.1 100 92.8 93.7 89.9 13.0% 12.6% 90 12.4% 78.5 1
Slide 14: Global Soybean Inventories Projected Well Above Average
Global Soybean Inventories Projected Well Above Average Global Soybean Stocks Global Soybean Stocks/Use (Million Metric Tons) 120 35.0% 33.0% 96.7 100 90.8 31.0% 29.4% 27.8% 78.5 29.0% 27.6% 77.5 26.5% 80 27.0% 25.7% 69.9 25.0% 25.0% 62.7 61.8 25.0% 59.5 23.0% 60 52.8 52.9 57.4 22.4% 53.4 23.0% 22.0
Slide 15: First Quarter 2018 Financial Review
First Quarter 2018 Financial Review US business units solid, strong Main Indicators ($M)** Q1-18 Q1-17 performance in MX on market improvements and success of new Net Revenue 2,746.7 2,479.3 product portfolio, UK/Europe stable. Gross Profit 287.7 256.5 SG&A lower due to realized synergies SG&A 8
Slide 16: First Quarter 2018 Capital Spending
First Quarter 2018 Capital Spending CapexCapex (US$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 expos
Slide 17: Investor Relations Contact
Investor Relations Contact Investor Relations: Dunham Winoto Director, Investor Relations E-mail: IRPPC@pilgrims.com Address: 1770 Promontory Circle Greeley, CO 80634 USA Website: www.pilgrims.com 171717
Slide 18: Appendix
APPENDIX Pan All about great taste.
Slide 19: Appendix: EBITDA Reconciliation
Appendix: EBITDA Reconciliation “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 indicative o
Slide 20: Appendix: EBITDA Margin Reconciliation
Appendix: EBITDA Margin Reconciliation EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by Net Revenue for the applicable period. PILGRIM'S PRIDE CORPORATION Reconciliation of EBITDA Margin (Unaudited) Thirteen Weeks Ended Thirteen Weeks Ended March
Slide 21: Appendix: Reconciliation of Adjusted Earnings
Appendix: Reconciliation of Adjusted Earnings A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share to adjusted net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share is as follows: PILGRIM'S PRIDE CORPORATION Recon
Slide 22: Appendix: Adjusted EPS Bridge
Appendix: Adjusted EPS Bridge A reconciliation of GAAP earnings per share (EPS) to adjusted earnings per share (EPS) is as follows: PILGRIM'S PRIDE CORPORATION Reconciliation of GAAP EPS to Adjusted EPS (Unaudited) Thirteen Weeks Ended April 1, 2018 March 26, 2017 (In thousands, except per share dat
Slide 23: Appendix: Segment and Geographic Data
Appendix: Segment and Geographic Data PILGRIM'S PRIDE CORPORATION Supplementary Selected Segment and Geographic Data Thirteen Weeks Ended April 1, 2018 March 26, 2017 (Unaudited) (In thousands) Sources of net sales by country of origin: US: $ 1,841,105 $ 1,736,405 Europe: 544,300 458,848 Mexico: 361