Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q1 2019 Earnings Presentation
25 slides from Pilgrim's Pride's earnings presentation, May 2, 2019
Slide 1: Financial Results for First Quarter Ended March 31, 2019
Exhibit 99.1 Financial Results for First Quarter Ended March 31, 2019 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: Pullet Placement In-line with Expected New Capacity
Pullet Placement In-line with Expected New Capacity Intended Pullet Placements 9,500 9,000 8,500 8,000 7,500 7,000 Thousand Head Thousand 6,500 6,000 5,500 5,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 5 year avg. . Trailing 8-Month placements average 3.1% above year prior to accom
Slide 4: Breeders Up to Accommodate New Processing Capacities, Egg Production Below 5-year Avg
Breeders Up to Accommodate New Processing Capacities, Egg Production YTD Remains Below 5-year Avg 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 Eggs 1,750 54,000 Thousand Head Thousand 53,000 1,700 52,000 1,650 51,0
Slide 5: Hatchery Utilization In-line with Historical Levels
Hatchery Utilization In-line with Historical Levels Hatchery Utilization 96.0% 94.0% 92.0% 90.0% % % 88.0% 86.0% 84.0% 82.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 5 Yr Avg Source: Agristats 5
Slide 6: Egg Sets Up +1.5% in Q1, Hatchability Remains Challenged
Egg Sets Up +1.5% in Q1 despite Larger Breeder Flock, Hatchability Remains Challenged Chicken Egg Sets Chicken Hatchability by Week - USDA by Week - USDA 240,000 83.0% 82.5% 230,000 82.0% 220,000 81.5% 81.0% 210,000 80.5% % 80.0% 200,000 79.5% Thousands of of Eggs Thousands 190,000 79.0% 78.5% 180,0
Slide 7: Chick Placements Up +1.2% in Q1
Chick Placements Up +1.2% in Q1 Chicken Broiler Placed by Week- USDA 195,000 190,000 185,000 180,000 175,000 Head (000) Head 170,000 165,000 160,000 5 Year Range 2017 2018 2019 5 Yr Avg Source: USDA 7
Slide 8: Bigger Bird Categories Continuing to Grow Share, Small Birds Declining
Bigger Bird Categories Continuing to Grow Share, Small Birds Declining Head Processed by Size 100% 15.1% 15.6% 18.3% 90% 19.7% 21.4% 20.9% 21.2% 21.7% 22.5% 80% 19.1% 19.3% 70% 19.4% 19.3% 20.9% 22.5% 23.6% 25.4% 23.1% 60% 50% 42.9% 40.7% 35.5% 35.0% 40% 32.2% 31.2% 30.4% 30.2% 32.0% 30% 20% 26.9% 2
Slide 9: Cold Storage Inventories Moving Lower on Improving Demand
Cold Storage Inventories Moving Lower on Improving Demand Total Chicken Inventories 1,000,000 950,000 900,000 850,000 800,000 LBS (000) LBS 750,000 700,000 650,000 2017 2018 2019 5 Year Average . Total inventories reduction in-line with seasonality; “Other” category declining. . Breast meat lowering
Slide 10: Average Cutout Strongly Rebounded Back to 2017 Levels
Average Cutout Strongly Rebounded Back to 2017 Levels, After Weak 2018 Cutout Value 110.00 100.00 90.00 80.00 Cents/Lb 76.71 70.00 60.00 50.00 1/4 2/1 3/1 6/7 7/5 8/2 1/18 2/15 3/15 3/29 4/12 4/26 5/10 5/24 6/21 7/19 8/16 8/30 9/13 9/27 11/8 12/6 10/11 10/25 11/22 12/20 5 Year Range 2017 2018 2019 5
Slide 11: Boneless Breast and Tenders Near 2017 Levels, Wings Very Strong
Boneless Breast and Tenders Near 2017 Levels, Wings Very Strong while LQs Back Above Year Ago Levels USDA Boneless/Skinless Breast NE USDA Tenders NE 215.00 250.00 195.00 230.00 175.00 210.00 179.03 190.00 155.00 170.00 135.00 Cents/Lb Cents/Lb 150.00 115.00 126.61 130.00 95.00 110.00 75.00 90.00 1/
Slide 12: 2018 Small Bird Prices Tracked Close to 2017, Good Start This Year
2018 Small Bird Prices Tracked Close to 2017, Off to a Good Start This Year EMI WOG 2.5-4.0 LBS 120 110 100 90 92.42 Cents/Lb. 80 70 60 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 2017 2018 2019 5 Year A
Slide 13: Corn Stocks to Decrease from Record Levels
Corn Stocks to Decrease from Record Levels Global Corn Stocks Global Corn Stocks/Use Excluding China 16.0% Excluding China (Million Metric Tons) 15.4% 14.9% 140 15.0% 127.7 14.4% 14.3% 130 14.1% 14.0% 117.9 13.7% 120 14.0% 109.4 109.2 110 103.2 13.0% 12.6% 12.8% 100 94.1 92.8 89.9 93.7 90 78.5 12.0%
Slide 14: Global Soybean Inventories Projected to Grow
Global Soybean Inventories Projected to Grow Global Soybean Stocks (Million Metric Tons) Global Soybean Stocks/Use 120 107.4 35.0% 99.1 33.0% 100 95.7 30.8% 31.0% 28.9% 29.3% 77.5 78.5 80 29.0% 27.6% 69.9 62.7 61.8 27.0% 25.7% 59.5 57.4 25.0% 25.0% 60 52.9 53.4 25.0% 44.0 23.0% 22.4% 23.0% 22.0% 40
Slide 15: Corn and Soybean Production by Major Export Country
Corn and Soybean Production by Major Export Country . Big rebound in major exporter production pressuring both corn and soybean prices. Source: USDA 15
Slide 16: First Quarter 2019 Financial Review
First Quarter 2019 Financial Review . U.S.: Commodity drove strong rebound Q/Q , PF accelerating in momentum; Main Indicators ($M) Q1-19 Q1-18 MX: challenging Q1 supply/demand Net Revenue 2,724.7 2,746.7 conditions but Q2 already recovering; UK/Europe: input headwinds Gross Profit 218.9 287.7 compen
Slide 17: Fiscal Year 2019 Capital Spending
Fiscal Year 2019 Capital Spending CapexCapex (US$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 exposur
Slide 18: 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 18
Slide 19: Appendix
APPENDIX SER All about great taste
Slide 20: 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 21: Appendix: Reconciliation of LTM EBITDA
Appendix: Reconciliation of LTM EBITDA The summary unaudited consolidated income statement data for the twelve months ended March 31, 2019 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the three months ended April 1, 2018 from th
Slide 22: 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 23: Appendix: Reconciliation of Adjusted Net Income
Appendix: Reconciliation of Adjusted Net Income 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 Rec
Slide 24: 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 March 31, 2019 April 1, 2018 (In thousands, except per share dat
Slide 25: Appendix: Segment and Geographic Data
Appendix: Segment and Geographic Data PILGRIM'S PRIDE CORPORATION Supplementary Selected Segment and Geographic Data (Unaudited) Thirteen Weeks Ended March 31, 2019 April 1, 2018 (In thousands) Sources of net sales by country of origin: US $ 1,883,591 $ 1,841,105 Europe 514,962 544,300 Mexico 326,12