Slide 1: Financial Results for First Quarter Ended March 31, 2024
Financial Results for First Quarter Ended March 31, 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: First Quarter 2024 Financial Review
First Quarter 2024 Financial Review ▪ U.S.: Significant Year-over-Year (YoY) improvement in commodity market pricing and operational Main Indicators ($MM) Q1 2024 Q1 2023 improvements benefited Big Bird business; while Case Ready and Prepared Foods improved YOY and Net Revenue 4,361.9 4,165.6 Quarte
Slide 4: Pullet Placements Increased 1.4% Y/Y in Q1-2024
Pullet Placements Increased 1.4% Y/Y in Q1-2024 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 5.3% vs. year ago. Source: USDA 4
Slide 5: Broiler Layer Flock Decreased Y/Y In Q1-24; Eggs/100 Increased
Broiler Layer Flock Decreased Y/Y In Q1-24; Eggs/100 Increased Y/Y In Q1-24 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 0.8% YoY in Q1-24; Hatchability Below Q1-23
Egg Sets Increased 0.8% YoY in Q1-24; Hatchability -0.2% Below Q1-23 Levels Chicken Egg Sets Chicken Hatchability by Week - USDA by Week - USDA 250,000 83.0% 245,000 82.0% 240,000 81.0% 235,000 Thousands of Eggs 80.0% 230,000 % 79.0% 225,000 220,000 78.0% 215,000 77.0% 210,000 76.0% 205,000 75.0% 20
Slide 7: Broiler Placements In Line With Year Ago Levels
Broiler Placements In Line With Year Ago Levels 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: Increased Head Counts in Big Bird Segment in Q1-24
Increased Head Counts in Big Bird Segment in Q1-24 Head Processed by Size 100% 90% 21.4% 20.9% 21.2% 21.7% 23.3% 24.1% 25.7% 25.4% 26.4% 27.3% 80% 70% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 60% 28.4% 29.7% 27.6% 26.8% 50% 32.2% 31.2% 40% 30.4% 30.2% 28.7% 27.4% 26.2% 28.2% 30% 27.6% 29.4% 20% 25.5% 25.
Slide 9: Industry Cold Storage Supplies in Q1-24 Trending Below Year Ago
Industry Cold Storage Supplies in Q1-24 Trending 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 at the end M
Slide 10: Jumbo Cutout Pricing Trended Near 5-year Average Before Accelerating
Jumbo Cutout Pricing Trended Near 5-year Average Before Accelerating in Late Q1 Jumbo Cutout 170 150 130 Cents/Lb 110 90 70 50 4/28 10/13 11/10 3/31 5/26 6/23 7/21 8/18 9/15 12/8 1/6 2/3 3/3 5 Year Range 5 Yr. Avg. 2022 2023 2024 Source: PPC, EMI 10
Slide 11: BSB, Tenders and Wings Improved Seasonally; LQ Above 5 Year Average
BSB, Tenders and Wings Improved Seasonally; LQ Continues to Pace Above 5 Year Average 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 9/4 1/7 2/6 3/8 4/7 5/7 6/6 7/6 8/5 10/4 11/3 12/3 1/7 2/
Slide 12: WOG Pricing Moving Seasonally Below Year Ago in Q1-24
WOG Pricing Moving Seasonally Below Year Ago in Q1-24 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 8/4 1/6 2/3 3/3 6/9 7/7 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. 20
Slide 13: Corn Dynamics
Corn Dynamics ▪ US remains on path to rebuild 23/24 corn ending stocks above the psychologically important 2.0B bushel level. ▪ Weather has continued to support record combined corn production in S. American origins, building 23/24 global corn stocks and creating export competition for the US into t
Slide 14: Soybean Dynamics
Soybean Dynamics ▪ US 23/24 ending stocks continue to build with weak export demand, forecast up 28% vs 22/23 crop year ▪ S. American combined soybean production hits new record high as growth in Argentina offsets small decline in Brazil vs prior year ▪ USDA prospective plantings survey shows higher
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 (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
Slide 18: Reconciliation of Adjusted EBITDA
Appendix: Reconciliation of Adjusted EBITDA PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Three Months Ended March 31, 2024 March 26, 2023 (In thousands) Net income $ 174,938 $ 5,631 Add: Interest expense, net(a) 30,897 39,062 Income tax expense (benefit) 52,062 (8,840) D
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 March 31, 2024 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the three months ended March 26, 20
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 March 31, 2024 March 26, 2023 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands) Net income (loss) $ 102
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 March 31, 2024 March 26, 2023 (In thousands) Sources of net sales by geographic region of origin: U.S. $ 2,579,332 $ 2,432,568 Eu