GREELEY, Colo., May 01, 2024 (GLOBE NEWSWIRE) -- Pilgrim's Pride Corporation (NASDAQ:PPC), one of the world's largest poultry producers, reports its first quarter 2024 financial results. First Quarter Highlights Net Sales of $4.4 billion. Consolidated GAAP operating income margin of 5.7%. GAAP Net Income of $174.9 million and GAAP EPS of $0.73. Adjusted Net Income of $182.9 million or Adjusted EPS of $0.77. Adjusted EBITDA of $371.9 million, or a 8.5% margin, with adjusted EBITDA margins of 9.4% in the U.S., 6.4% in Europe, and 9.2% in Mexico. Our diversified U.S. fresh portfolio continues to demonstrate its strength with dynamic market conditions, through increased partnership with Key Customers in both Case Ready and Small Bird, and improved operational excellence in Big Bird. Prepared Foods continues to accelerate its profitable growth through branded fully cooked offerings as Just Bare® and Pilgrim's® net sales collectively grew 30% from prior year and continue to gain distribution across all channels. Europe continued its journey to improve through additional distribution with Key Customers and further optimization of manufacturing and support activities. Diversification through brands continues to grow as net sales for Richmond® and Fridge Raiders® grew 6.5% and 9.6% respectively. Mexico improved results given balanced supply and demand fundamentals in commodity markets, deepened relationships with Key Customers, and expanded presence in differentiated offerings. Strong liquidity position and net leverage ratio of less than 2.0x Adjusted EBITDA through prudent management of working capital. Increased diversification of our portfolio to support profitable growth as our protein conversion plant in South Georgia initiated start up in March. Completed an external review of our GHG emission intensity levels associated with our Sustainability Linked Bond. Emission intensity declined by 15.6% between 2019 and 2022 from improved production efficiencies, capital investments, and energy infrastructure enhancements. (Unaudited) Three Months Ended   March 31,2024   March 26,2023   Y/Y Change   (In millions, except per share and percentages) Net sales $ 4,361.9     $ 4,165.6     +4.7% U.S. GAAP EPS $ 0.73     $ 0.02     NM(2) Operating income $ 250.3     $ 31.3     +699.7% Adjusted EBITDA(1) $ 371.9     $ 151.9     +144.8% Adjusted EBITDA margin(1)   8.5 %     3.6 %   +4.9pts (1) Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release. (2) This Y/Y change is designated not meaningful (or "NM").   "Although we experienced depressed market conditions and persistent consumer inflation throughout 2023, we saw this as opportunity to enhance our competitive advantage. To that end, we focused on consistent execution of our strategies, controlling what we can control, and maintaining investment in our operations. These efforts further strengthened our business, accelerating our profitable growth as market conditions evolved," said Fabio Sandri, Pilgrim's Chief Executive Officer. During the first quarter, the U.S. continued to improve as Big Bird realized significant benefits from enhanced operational efficiencies and market fundamentals. Case Ready and Small Bird continued to grow from increased distribution with Key Customers, promotional activity, and the value of chicken to consumers. Prepared Foods also drove significant growth in both retail and food service through branded offerings, further diversifying the portfolio. "Our U.S. portfolio continues to demonstrate an ability to capture market upsides while minimizing downside risk through a diversified set of offerings across multiple bird sizes and value-added items. This approach is further reinforced by our Key Customer partnerships and relentless focus on operational excellence," remarked Sandri. In Europe, consumer inflation and labor costs continue to be challenging. Nonetheless, the team secured additional business with retail Key Customers, drove branded growth above category averages, and identified further efficiencies in manufacturing and support activities.   "Over the past year, the Europe team executed a variety of efforts to improve Key Customer partnerships, enhance our operational excellence, and further diversify our portfolio of branded offerings. Our foundation is much stronger today and we will continue to explore ways to accelerate our journey of profitable growth," said Sandri. Mexico improved through a combination of enhanced supply and demand fundamentals in the commodity market, increased Key Customer partnerships, and further momentum of branded offerings. Operational excellence efforts to expand capacity and mitigate risk in live operations remain on track. "Our strategies continue to demonstrate their effectiveness as we've grown ahead of the markets with our Key Customers. Similarly, our branded portfolio continues to gain acceptance throughout the market, further diversifying our portfolio. When these efforts are combined with our operational excellence initiatives to expand capacity, we can further drive our profitable growth," said Sandri. Pilgrim's efforts in sustainability continue to drive meaningful progress. Between 2019 and 2022, GHG emissions intensity has fallen by 15.6%, translating into an absolute reduction of 216,000 metric tons. "We are proud of our leadership mindset regarding sustainability. Given our continued efforts, we can elevate our performance in GHG intensity reduction, creating a better future for our team members and further reinforcing our vision to become the best and most respected company in our industry," said Sandri. Conference Call Information A conference call to discuss Pilgrim's quarterly results will be held tomorrow, May 2, at 7 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.To pre-register, go to: https://services.choruscall.com/links/ppc240502.html You may also reach the pre-registration link by logging in through the investor section of our website at https://ir.pilgrims.com in the "Events & Presentations" section. For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the "Pilgrim's Pride Conference." Replays of the conference call will be available on Pilgrim's website approximately two hours after the call concludes and can be accessed through the "Investor" section of www.pilgrims.com. About Pilgrim's Pride Pilgrim's employs approximately 61,600 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, the Republic of Ireland and continental Europe. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com. 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 limiting the foregoing, words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "should," "targets," "will" and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company's business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company's products; outbreaks of avian influenza or other diseases, either in Pilgrim's Pride's flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim's Pride's products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim's Pride's leverage; changes in laws or regulations affecting Pilgrim's Pride's operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim's Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim's Pride's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date hereof, and the Company undertakes no obligation to update any such statement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. Contact: Andrew Rojeski   Head of Strategy, Investor Relations, & Sustainability     www.pilgrims.com PILGRIM'S PRIDE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS           (Unaudited)       March 31, 2024   December 31, 2023   (In thousands) Cash and cash equivalents $ 870,820     $ 697,748   Restricted cash and restricted cash equivalents   24,063       33,475   Trade accounts and other receivables, less allowance for credit losses   1,049,410       1,129,178   Accounts receivable from related parties   2,146       1,778   Inventories   1,861,989       1,985,399   Income taxes receivable   141,122       161,062   Prepaid expenses and other current assets   222,327       195,831   Total current assets   4,171,877       4,204,471   Deferred tax assets   7,151       4,890   Operating lease assets, net   279,105       266,707   Other long-lived assets   45,955       35,646   Intangible assets, net   837,747       853,983   Goodwill   1,274,721       1,286,261   Property, plant and equipment, net   3,151,784       3,158,403   Total assets $ 9,768,340     $ 9,810,361           Accounts payable $ 1,295,910     $ 1,410,576   Accounts payable to related parties   13,524       41,254   Revenue contract liabilities   45,422       84,958   Accrued expenses and other current liabilities   876,217       926,727   Income taxes payable   48,022       31,678   Current maturities of long-term debt   650       674   Total current liabilities   2,279,745       2,495,867   Noncurrent operating lease liabilities, less current maturities   217,660       203,348   Long-term debt, less current maturities   3,342,664       3,340,841   Deferred tax liabilities   401,003       385,548   Other long-term liabilities   32,890       40,180   Total liabilities   6,273,962       6,465,784   Common stock   2,621       2,620   Treasury stock   (544,687 )     (544,687 ) Additional paid-in capital   1,983,592       1,978,849   Retained earnings   2,245,494       2,071,073   Accumulated other comprehensive loss   (206,364 )     (176,483 ) Total Pilgrim's Pride Corporation stockholders' equity   3,480,656       3,331,372   Noncontrolling interest   13,722       13,205   Total stockholders' equity   3,494,378       3,344,577   Total liabilities and stockholders' equity $ 9,768,340     $ 9,810,361     PILGRIM'S PRIDE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)           Three Months Ended   March 31, 2024   March 26, 2023   (In thousands, except per share data) Net sales $ 4,361,934     $ 4,165,628   Cost of sales   3,978,025       3,992,581   Gross profit   383,909       173,047   Selling, general and administrative expense   119,076       133,678   Restructuring activities   14,559       8,026   Operating income   250,274       31,343   Interest expense, net of capitalized interest   41,243       42,662   Interest income   (10,346 )     (3,600 ) Foreign currency transaction losses (gains)   (4,337 )     18,143   Miscellaneous, net   (3,286 )     (22,653 ) Income (loss) before income taxes   227,000       (3,209 ) Income tax expense (benefit)   52,062       (8,840 ) Net income   174,938       5,631   Less: Net income attributable to noncontrolling interests   517       444   Net income attributable to Pilgrim's Pride Corporation $ 174,421     $ 5,187           Weighted average shares of Pilgrim's Pride Corporation common stock outstanding:       Basic   236,844       236,585   Effect of dilutive common stock equivalents   647       579   Diluted   237,491       237,164           Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:       Basic $ 0.74     $ 0.02   Diluted $ 0.73     $ 0.02                   PILGRIM'S PRIDE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)     Three Months Ended   March 31, 2024   March 26, 2023   (In thousands) Cash flows from operating activities:       Net income $ 174,938     $ 5,631   Adjustments to reconcile net income to cash provided by operating activities:       Depreciation and amortization   103,350       98,257   Deferred income tax expense (benefit)   15,519       (26,309 ) Stock-based compensation   4,744       1,200   Loss (gain) on property disposals   1,842       (9,333 ) Loan cost amortization   1,311       1,333   Accretion of discount related to Senior Notes   649       429   Gain on equity-method investments   (2 )     (4 ) Adjustment to previously recognized asset impairment   —       (130 ) Changes in operating assets and liabilities:       Trade accounts and other receivables   72,350       (132,791 ) Inventories   114,471       (30,267 ) Prepaid expenses and other current assets   (27,628 )