Pilgrim's Pride Corporation Reports 5.2% Revenue Growth, Net Income Surge to $851.5 Million in Nine Months Ended September 29, 2024

Pilgrim's Pride Corporation (PPC), one of the largest chicken producers globally, reported significant financial performance improvements for the nine months ended September 29, 2024. Total net sales reached $13.5 billion, marking a $672.3 million increase, or 5.2%, compared to the same period in 2023. The U.S. segment was a key driver, with net sales rising to $8.0 billion, up $649.6 million, or 8.8%, primarily due to increased sales volume and net sales per pound.

For the three months ended September 29, 2024, PPC's total net sales were $4.6 billion, a 5.2% increase from $4.4 billion in the same quarter of the previous year. The U.S. segment saw a notable 11.5% increase in net sales, attributed to a rise in sales volume and net sales per pound. However, net sales in Mexico decreased by 10.0%, largely due to unfavorable foreign currency translation.

Gross profit for the nine-month period surged to $1.8 billion, up from $797.4 million in the prior year, reflecting a robust operating income of $1.2 billion, a 254.9% increase from $338.0 million. The operating margin improved to 8.9%. The company reported net income of $851.5 million, or $3.58 per diluted share, compared to $188.1 million in the same period of 2023.

PPC's cash and cash equivalents increased significantly to $1.9 billion as of September 29, 2024, up from $697.7 million at the end of 2023. The company also completed a $130 million industrial revenue bond transaction to support its Douglas, Georgia facility, enhancing its operational capacity.

Strategically, PPC has been undergoing restructuring initiatives, particularly in its Europe segment, with total estimated costs of $165.6 million. The company recognized restructuring expenses of $82.1 million for the nine months ended September 29, 2024, primarily related to asset impairment and severance costs. Additionally, PPC executed a termination of its Union and GK Plans, settling $43.4 million in outstanding benefit obligations.

The company has also been active in managing its debt, repurchasing $144.3 million of senior notes as part of a $200 million bond repurchase program initiated in May 2024. As of September 29, 2024, PPC had no outstanding borrowings under its U.S. credit facility, which has a commitment of up to $850 million.

Overall, Pilgrim's Pride Corporation demonstrated strong revenue growth and profitability improvements, alongside strategic restructuring efforts and effective cash management.