Slide 1: Financial Results for Second Quarter Ended June 30, 2024
Financial Results for Second Quarter Ended June 30, 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: Second Quarter 2024 Financial Review
Second Quarter 2024 Financial Review ▪ U.S.: Year-over-year (YoY) increase in commodity market pricing and moderating input costs positively impacted Big Bird business; along with growth with Main Indicators ($MM) Q2 2024 Q2 2023 Key Customers in Case Ready and Small Bird driving operating income im
Slide 4: Pullet Placements Declined Y/Y in Q2-2024 Given Reductions In May
Pullet Placements Declined Y/Y in Q2-2024 Given Reductions In May Intended Pullet Placements 12,000 10,000 8,000 6,000 Thousand Head 4,000 2,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 2024 5 Yr. Avg. ▪ Trailing 8-month placements increased 1.6% vs. year ago. Source: USDA 4
Slide 5: Broiler Layer Flock Decreased Y/Y In Q2-24; Eggs/100 Increased
Broiler Layer Flock Decreased Y/Y In Q2-24; Eggs/100 Increased Y/Y In Q2-24 Broiler Type Hatching Layers Eggs/100 65,000 2,000 1,950 64,000 1,900 63,000 1,850 1,800 Head (000) 62,000 Eggs 1,750 61,000 1,700 1,650 60,000 1,600 59,000 1,550 58,000 1,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 6: Egg Sets Increased 1.4% YoY in Q2-24; Hatchability Below Q2-23
Egg Sets Increased 1.4% YoY in Q2-24; Hatchability -0.3% Below Q2-23 Levels Chicken Egg Sets Chicken Hatchability by Week - USDA by Week - USDA 260,000 83.0% 82.0% 250,000 81.0% 240,000 Thousands of Eggs 80.0% % 79.0% 230,000 78.0% 220,000 77.0% 76.0% 210,000 75.0% 200,000 74.0% 5 Year Range 5 Yr. A
Slide 7: Broiler Placements Increased 1.2% Above Year-Ago Levels in Q2-24
Broiler Placements Increased 1.2% Above Year-Ago Levels in Q2-24 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. 2022 2023 2024 Source: USDA 7
Slide 8: Reduced Head Counts in Small Bird Debone Segment in Q2-24
Reduced Head Counts in Small Bird Debone Segment in Q2-24 Head Processed by Size 100% 90% 21.4% 20.9% 21.2% 21.7% 23.3% 24.1% 25.7% 25.4% 26.4% 26.9% 80% 70% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 60% 28.4% 29.7% 27.6% 27.4% 50% 32.2% 31.2% 40% 30.4% 30.2% 28.7% 27.4% 26.2% 28.4% 30% 27.6% 29.4% 20% 25
Slide 9: Industry Cold Storage Supplies in Q2-24 Trend Below Year Ago
Industry Cold Storage Supplies in Q2-24 Trend Below Year Ago and 5-Year Average Total Chicken Inventories 950,000 900,000 850,000 800,000 750,000 LBS (000) 700,000 650,000 600,000 550,000 500,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 2024 5 Yr. Avg. • Total Inventories ended Q2 -12.6%
Slide 10: Jumbo Cutout Pricing Trended Above Year Ago and 5-year Average
Jumbo Cutout Pricing Trended Above Year Ago and 5-year Average in Q2-24 Jumbo Cutout 170 150 130 Cents/Lb 110 90 70 50 1/6 2/3 3/3 6/23 10/13 11/10 3/31 4/28 5/26 7/21 8/18 9/15 12/8 5 Year Range 5 Yr. Avg. 2022 2023 2024 Source: PPC, EMI 10
Slide 11: BSB and Tenders Improved Seasonally, Wings Accelerated, LQ Steady
BSB and Tenders Improved Seasonally, Wings accelerated above seasonal norm, LQ Steady in Q2-24 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 1/7 2/6 3/8 4/7 5/7 6/6 7/6 8/5 9/4 11/3 10/4 12
Slide 12: WOG Pricing Steady, Below Year Ago in Q2-24
WOG Pricing Steady, Below Year Ago in Q2-24 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 2/3 3/3 6/9 7/7 8/4 9/1 10/13 10/27 11/10 11/24 12/22 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. 2022 2023 20
Slide 13: Corn Dynamics
Corn Dynamics US Corn Stocks 330.00 2,500 (Million Bushels) World Corn Ending Stocks 320.00 (MMT) 2,097 310.79 311.64 309.13 2,000 1,919 1,877 310.00 306.33 302.19 300.00 292.84 1,500 1,377 1,360 1,235 290.00 280.00 1,000 270.00 500 260.00 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2019/20 2020
Slide 14: Soybean Dynamics
Soybean Dynamics US Soybean Stocks 600 (Million Bushels) 130 World Soy Ending Stocks 127.9 525 (MMT) 125 435 120 115 111.25 400 345 110 257 274 264 105 99.83 100.61 99.14 100 96.53 200 95 90 85 0 80 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 ▪June
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 Source: PPC 15
Slide 16: Appendix
7) pilgrims APPENDIX
Slide 17: 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: Reconciliation of Adjusted EBITDA
Appendix: Reconciliation of Adjusted EBITDA PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 (In thousands) Net income $ 326,523 $ 60,908 $ 501,461 $ 66,539 Add: Interest expense, net
Slide 19: Reconciliation of LTM Adjusted EBITDA
Appendix: Reconciliation of LTM Adjusted EBITDA The summary unaudited consolidated income statement data for the twelve months ended June 30, 2024 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended June 25, 2023 f
Slide 20: 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 21: 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 June 30, 2024 June 25, 2023 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) Net income (loss) $ 199,0
Slide 22: Reconciliation of Adjusted EBITDA by Segment
Appendix: Reconciliation of Adjusted EBITDA by Segment PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Six Months Ended Six Months Ended June 30, 2024 June 25, 2023 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) Net income (loss) $ 301,707 $
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 (In thousands) Sources of net sales by geographic region