Pilgrim's Pride Q4 2024: Contradictions on Feed Costs, Pricing Stability, M&A Focus, and Hatchability Challenges
Earnings DecryptThursday, Feb 13, 2025 7:05 pm ET
3min read
These are the key contradictions discussed in Pilgrim's Pride's latest 2024Q4 earnings call, specifically including: Feed Cost Inflation Impact on Margins, Pricing Outlook, M&A Strategy, and Supply Chain and Hatchability Challenges:
Profitability and Revenue Growth:
- Pilgrim's Pride reported net income of $85.1 million for the fourth quarter of 2024, a 59% increase compared to the same period in the previous year.
- This growth was driven by improved profitability in both the U.S. and Mexico regions, primarily due to cost management and operational efficiencies.
Meat Production Costs and Pricing Strategy:
- The average cost of production for Pilgrim's Pride increased by 3.5% in Q4, with the company noting higher feed costs and a weakened U.S. dollar.
- The company maintained pricing discipline, which helped offset some of the cost pressures, contributing to improved profitability.
U.S. and Mexico Operations Performance:
- In the U.S., Pilgrim's Pride achieved a 5.1% increase in gross profit margin, leading to a 13.4% increase in operating profit.
- The Mexico segment saw a 65% increase in operating profit, reflecting strong operational performance and strategic pricing in that region.
Profitability and Revenue Growth:
- Pilgrim's Pride reported net income of $85.1 million for the fourth quarter of 2024, a 59% increase compared to the same period in the previous year.
- This growth was driven by improved profitability in both the U.S. and Mexico regions, primarily due to cost management and operational efficiencies.
Meat Production Costs and Pricing Strategy:
- The average cost of production for Pilgrim's Pride increased by 3.5% in Q4, with the company noting higher feed costs and a weakened U.S. dollar.
- The company maintained pricing discipline, which helped offset some of the cost pressures, contributing to improved profitability.
U.S. and Mexico Operations Performance:
- In the U.S., Pilgrim's Pride achieved a 5.1% increase in gross profit margin, leading to a 13.4% increase in operating profit.
- The Mexico segment saw a 65% increase in operating profit, reflecting strong operational performance and strategic pricing in that region.
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