Pilgrim’s Pride Reports Operating Income of $189 Million with a Margin of 9.6% for the First Quarter of 2016
April 27, 2016
GREELEY, Colo., April 27, 2016 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ:PPC) reports first quarter 2016 financial results.
First Quarter Highlights
- Net Sales of $1.96 billion.
- Net Income of $118.4 million, GAAP EPS of $0.46.
- EBIT margins of 10.5% in U.S. and 4.8% in Mexico operations, respectively.
- Adjusted EBITDA of $233.5 million (or an 11.9% margin).
- Free Cash Flow of $141.3 million.
- Conversion of a production facility to USDA-certified organic chicken, enhancing PPC leadership in emerging consumer trends and leveraging partnerships with key customers to support their growth.
|Unaudited, In Millions, Except Per Share and Percentages|
| ||Thirteen Weeks Ended|
| ||March 27, 2016|| ||March 29, 2015|| ||Change|
|Net Sales||$||1,962.9|| || ||$||2,052.9|| || || ||-4.3||%|
|GAAP EPS||$||0.46|| || ||$||0.79|| || || ||-42||%|
|Operating Income||$||188.8|| || ||$||327.6|| || || ||-42.4||%|
|Adjusted EBITDA (1)||$||233.5|| || ||$||363.5|| || || ||-35.8||%|
|Adjusted EBITDA Margin|| ||11.9||%|| || ||17.8||%|| ||-5.9pts|
| || || || || || |
(1) Reconciliations for non-GAAP measures are provided in subsequent sections within this release.
“Our U.S. and Mexican businesses improved sequentially in Q1 following a challenging Q4, putting us in a strong position for Q2. While market conditions contributed to the improvement, our well-balanced portfolio played a key factor in delivering the improved Q1 performance since we were able to leverage the strength in specific market segments while minimizing the impact of the others,” stated Bill Lovette, Chief Executive Officer of Pilgrim's.
“Leveraging our leadership in the ABF market and our partnership with Key customers, we are excited to announce that we have begun work on converting one of our facilities to produce USDA-certified organic chicken. We are committed to deploy valuable resources, when necessary, to accelerate our growth by offering creative solutions to fulfill emerging consumer demand preference trends for more natural products such as ABF and organic chicken. We continue to believe our portfolio strategy, combined with our approach of being a valued partner with key customers and pursuing operational excellence while strategically growing value-added exports, will allow us to deliver less volatility and higher earnings to our shareholders over time.”
“In Mexico, we continue to see improvements in market conditions year to date, and we are on target in integrating the new assets and realizing announced synergies. We will continue to seek new opportunities to position us to be a much stronger player in all geographies, meet future demand growth in the region, and give us the best portfolio to serve the Mexican consumers.”
“Within Prepared Foods, our vision of sustainable growth remains intact. With the well-regarded Pierce brand playing a central role and the addition of a new fully-cooked line at our Moorefield, WV complex scheduled for completion late this year, we are on track to expand margins and increase our footprint to new accounts where we did not have prior presence.”
Conference Call Information
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. The webcast will be available for replay through July 28, 2016.
About Pilgrim’s Pride
Pilgrim’s employs approximately 37,900 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.
Director, Investor Relations
Pilgrim's Pride Corporation
(970) 506 8192