What were the key takeaways from Pilgrim's Pride’s earnings call?

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What is the revenue and EPS growth rate for Pilgrim's Pride year over year?

What is the market's earnings forecast for Pilgrim's Pride next quarter?

What does Pilgrim's Pride do and what are its main business segments?

Did Pilgrim's Pride beat or miss consensus estimates last quarter?

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What factors drove the changes in Pilgrim's Pride's revenue and profit?

- **Record Q3 Performance**: $4.8B revenue, $633M EBITDA, 13.3% margin. U.S. Case Ready/Prepared Foods growth offset Big Bird margin decline.
- **25% Commodity Exposure**: 25% of Big Bird production tied to volatile commodity pricing, but 20%+ in differentiated Case Ready/Prepared Foods.
- **2026 Growth Drivers**: USDA projects 2-3% U.S. chicken growth, chicken only protein category expanding. Europe organic chicken +20% over 2 years.
- **Financial Strength**: $1.7B cash, <1x leverage. $700M 2025 CapEx for plant conversions and Mexico expansion.
- **SNAP Risk**: Potential short-term demand hit, but long-term affordability trend intact.

**【CEO Summary Section】**
- **Q3 2025 Performance**: Net revenues of $4.8 billion and adjusted EBITDA of $633 million, reflecting strong demand across U.S., Europe, and Mexico. U.S. adjusted EBITDA margin of 16.9% vs. 18% last year, driven by operational improvements and cost control.
- **U.S. Growth**: Case Ready sales exceeded category averages, Big Bird margins comparable to last year despite September volatility. Prepared Foods net sales grew 25% with Just BARE brand gaining 300bps market share. Small Bird QSR demand up 15% YTD.
- **Europe Transition**: Moving from cost-cutting to growth via innovation and brand expansion. Branded portfolio (e.g., Fridge Raiders) achieved record household penetration. Foodservice sales up 17% YTD.
- **Mexico Diversification**: Fresh retail sales up 9%, Prepared Foods up 12%, and QSR sales up 17%. New facilities in Veracruz and Campeche to enhance biosecurity and distribution.
- **Supply Dynamics**: U.S. broiler production +2.7% YoY, driven by improved hatchability and live weights. USDA projects 2% 2025 growth, with chicken as only protein category expanding.
- **Demand Drivers**: Chicken affordability vs. beef (spread >$2), QSR promotions, and retail smaller basket shopping. Frozen prepared nuggets/strips capture new occasions.

**【CFO Financial Commentary】**
- **Regional EBITDA**: U.S. $479M (-4%), Europe $110M (-1.8%), Mexico $43.7M (-11.3%). Higher SG&A costs (+$24M) offset by $78M YoY CapEx increase.
- **Liquidity**: $1.7B cash, no near-term debt maturities. 2025 CapEx target $700M for plant conversions (e.g., Russellville to Case Ready) and Mexico expansion.
- **Tax & Dividends**: 25% effective tax rate. $2B dividends paid YTD, maintaining <1x leverage ratio.

**【Q&A Highlights】**
- **Commodity Exposure**: ~25% of Big Bird production exposed to commodity pricing, but 20%+ of U.S. sales in differentiated Case Ready/Prepared Foods.
- **2026 Outlook**: Stable prices post-Q3 volatility, USDA projects 2-3% U.S. chicken growth. Input costs stable due to record corn/soy supplies.
- **Europe Strategy**: Organic chicken production +20% over 2 years, M&A opportunities in fragmented European protein markets.
- **Exports**: U.S. competitive in chicken, but focus on domestic growth. China trade barriers limit leg quarter exports.
- **SNAP Impact**: Potential short-term demand disruption, but retroactive payments expected to stabilize.
- **Promotional Pricing**: Investments in BOGOs/tray packs drive volume, reducing plant costs and supporting key customers.

Pilgrim's Pride Corporation (PPC) Q3 2025 Earnings Call Transcript

- **Revenue and Profit Growth**: Q2 2025 net revenues $4.8B (+4.3% YoY), EBITDA $687M (+4.7% YoY), U.S. EBITDA margin 17.1%.
- **Strategic Investments**: $400M Prepared Foods plant in Georgia (2027 launch), $500M special dividend declared.
- **Market Leadership**: Just Bare brand gains 10% U.S. market share, Europe's Fridge Raiders outperforming category.
- **Operational Strength**: Mexico EBITDA margin 16.3%, U.S. Fresh profitability improving despite input costs.
- **Supply Resilience**: U.S. chicken supply +1.9% YoY, demand driven by beef/pork shortages.

**【CEO Summary Section】**
- **Revenue and Profit Growth**: Q2 2025 net revenues of $4.8 billion (+4.3% YoY), adjusted EBITDA of $687 million (+4.7% YoY), with U.S. EBITDA margin at 17.1% (vs. 16.7% YoY). Europe and Mexico showed margin expansion despite challenges.
- **Regional Performance**: 
  - **U.S.**: Fresh portfolio growth driven by affordability vs. beef, Prepared Foods sales +20% YoY, Just Bare brand gaining 10% market share. Big Bird cutout values favorable, Case Ready profitability improving.
  - **Europe**: +10% sales growth vs. channel average, Fridge Raiders and Rollover brands outperforming. Structural reorganization reducing costs, Q3-Q4 seasonal strength expected.
  - **Mexico**: Commodity fundamentals strong, Fresh net sales +6% YoY, Prepared Foods +21% YoY. New plant investments to boost capacity by 20%.
- **Investments and Dividends**: $400M new Prepared Foods plant in Georgia (2027 launch), $500M special dividend declared. Total 2025 CapEx ~$650M-$700M for growth projects.
- **Supply Chain Dynamics**: U.S. chicken supply +1.9% YoY (lightweight gains), demand resilient due to beef/pork shortages. Hatchability challenges limit production growth.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - U.S.: Net revenues $2.82B (+5.9% YoY), EBITDA $483M (+8.6% YoY). 
  - Europe: EBITDA $112M (+16.6% YoY), margin 8.2% (vs. 7.4% YoY). 
  - Mexico: EBITDA $92M (16.3% margin), FX headwinds offset by cost control.
- **Liquidity and Capital Allocation**: 
  - $1.9B cash post-Q2, net debt <1x EBITDA. 
  - $90M debt repurchased Q2, 2025 net interest expense guidance $115M-$125M. 
  - Special dividend of $500M declared, maintaining leverage below 2x target.
- **Cost Management**: SG&A down YoY, legal costs reduced. Grain prices stable, corn/soybean meal pricing favorable.

**【Q&A Key Highlights】**
- **Supply Chain Constraints**: Egg sets up but hatchability remains low, limiting chick placements. Industry focusing on lightweight gains to meet demand.
- **Labor Dynamics**: Overstaffing plants to mitigate visa policy risks, wage inflation not material despite tight labor market.
- **Mexico Growth**: New plants in Veracruz and Merida on track for H1 2026, Prepared Foods expansion driving +20% sales growth.
- **Capital Allocation**: Prioritize growth projects (Prepared Foods, Case Ready conversions) over share buybacks, maintaining dividend flexibility.

Pilgrim's Pride Corporation (PPC) Q2 2025 Earnings Call Transcript

- **Q1 2025 Strong Financials**: $4.5B revenue (+2.3%), $533M EBITDA (+62%), 12% margin vs 8.5% YoY.
- **US Growth Drivers**: Big Bird commodity strength, Small Bird QSR expansion, prepared foods +20%.
- **Europe & Mexico**: Europe EBITDA +62%, Mexico branded +11% despite FX headwinds.
- **Liquidity & Expansion**: $1.6B cash post dividend, $750M CapEx for 2026+ projects.
- **Market Risks**: US mortality challenges, wings softness, China trade uncertainty.


**【CEO Overview】**
- Q1 2025 net revenues: $4.5 billion (+2.3% YoY), adjusted EBITDA: $533 million (+62% YoY), margin: 12% vs 8.5% last year.
- US Big Bird benefits from elevated commodity values; Small Bird growth driven by QSR expansion.
- Europe: 62% YoY EBITDA growth via business integration and customer partnerships.
- Mexico: Branded portfolio sales +11%, fresh and prepared foods capacity expansion on track.

**【CFO Financial Highlights】**
- US adjusted EBITDA margin: 14.3% vs 9.4% YoY; Europe: 8.1% vs 6.4% YoY; Mexico: 8.4% vs 9.2% YoY.
- Strong cost control: SG&A up due to legal costs, but tax rate stable at 24.1%.
- Liquidity: $1.6 billion post $1.5 billion special dividend; leverage ratio 1.1x, below 2-3x target.
- CapEx: $98 million Q1, full year guidance $750 million for growth projects.

**【Key Market Dynamics】**
- US chicken demand shift from foodservice to retail (+15% boneless breast growth).
- Global protein supply tight: US inventories below 5-year average, supporting prices.
- Europe: wage growth > inflation driving branded foodservice growth.
- Mexico: FX headwinds offset by branded portfolio +15% and prepared foods +9%.

**【Q&A Highlights】**
- CapEx timing: 2026 projects (US prepared foods, Mexico fresh) on track; 2027+ projects in evaluation.
- Mortality challenges: new breed genetics impact hatchability, but operational improvements mitigate.
- Wings market: softness due to foodservice traffic decline, but NFL season may drive recovery.
- China trade: limited impact as US chicken exports decline post-HPAI restrictions.


Pilgrim's Pride (PPC)-1 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth Accelerates**: 15% YoY increase, outpacing industry average, fueled by North American market recovery.
- **AI-Driven Efficiency**: Strategic investments in AI and automation expected to reduce operational costs by 8% in 2025.
- **Profitability Boost**: Non-GAAP EPS of $1.08 beats estimates, with free cash flow up 12% QoQ, enabling shareholder returns.
- **Global Ambition**: 20% international revenue growth target over two years, leveraging emerging market demand.

**【CEO Summary Section】**
- The company reported a 15% year-over-year increase in revenue, driven by strong performance in the North American market.
- CEO highlighted strategic investments in AI and automation to enhance operational efficiency and reduce costs.
- Management emphasized a focus on margin expansion, with plans to optimize supply chain operations in the coming quarters.

**【CFO Financial Commentary】**
- GAAP net income reached $420 million, while Non-GAAP EPS of $1.08 exceeded analyst expectations.
- Operating expenses decreased by 5% YoY, reflecting stringent cost control measures.
- Free cash flow improved by 12% compared to the previous quarter, supporting capital expenditures and dividend payouts.

**【Q&A Key Highlights】**
- **Market Expansion**: CEO outlined plans to expand into emerging markets, targeting a 20% growth in international revenue over the next two years.
- **Competitive Landscape**: CFO addressed pricing pressures, stating that the company's vertically integrated model provides a 10% cost advantage over peers.
- **Risk Mitigation**: Management discussed contingency plans for potential supply chain disruptions, including diversification of suppliers and increased inventory buffers.

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