• Pilgrim’s Pride Reports Second Quarter 2024 Results with $4.6 Billion in Net Sales and Operating Income of $440.8 Million

    来源: Nasdaq GlobeNewswire / 31 7月 2024 15:30:01   America/Chicago

    GREELEY, Colo., July 31, 2024 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's largest food companies, reports its second quarter 2024 financial results.

    Second Quarter Highlights

    • Net Sales of $4.6 billion.
    • Consolidated GAAP operating income margin of 9.7%.
    • GAAP Net Income of $326.5 million and GAAP EPS of $1.37. Adjusted Net Income of $398.0 million or Adjusted EPS of $1.67.
    • Adjusted EBITDA of $655.9 million, or a 14.4% margin, with Adjusted EBITDA margins of 16.7% in the U.S., 7.4% in Europe, and 19.4% in Mexico.
    • Our U.S. fresh portfolio continued to strengthen given enhanced market conditions and disciplined execution of our strategies. Case Ready and Small Bird continue to improve through expanding partnerships with Key Customers with differentiated offerings, and Big Bird improved from better commodity fundamentals and progress in operational excellence.
    • Diversification through Prepared Foods continues to gain momentum as fully cooked branded offerings grew across retail and food service through innovation, increased distribution, and promotional activity. Net sales of Just Bare® grew double digits and ahead of the category; and our new and innovative offerings under the Pilgrim’s® brand has secured incremental distribution.
    • Europe grew Adjusted EBITDA over 40% compared to prior year as mix with Key Customers improved and operational excellence remained on track. Our performance in safety, quality and service was recognized at the National Egg & Poultry Awards as Processor of the Year for United Kingdom. Diversification through brands and innovation accelerated as Richmond® and Fridge Raiders® grew nearly double digits, and over 85 new products have been launched.
    • Mexico improved given sustained balance in commodity supply and demand fundamentals, growth with Key Customers, and continued momentum of brands across Fresh and Prepared offerings.
    • Strong liquidity position with a net leverage ratio of 1.1x Adjusted EBITDA providing the foundation to execute our growth strategy.
    • Advancing our strategy of growing and adding value to our portfolio, we ramped up our new protein conversion plant in South Georgia during the quarter and continue to partner with Key Customers to support future growth.
    (Unaudited) Three Months Ended Six Months Ended
      June 30,
    2024    		 June 25,
    2023    		 Y/Y Change June 30,
    2024    		 June 25,
    2023    		 Y/Y Change
      (In millions, except per share and percentages)
    Net sales $4,559.3  $4,308.1  +5.8% $8,921.2  $8,473.7  +5.3%
    U.S. GAAP EPS $1.37  $0.25  +448.0% $2.11  $0.28  +653.6%
    Operating income $440.8  $100.3  +339.5% $691.1  $131.6  +425.2%
    Adjusted EBITDA(1) $655.9  $248.7  +163.7% $1,027.8  $400.7  +156.5%
    Adjusted EBITDA margin(1)  14.4%  5.8% +8.6pts  11.5%  4.7% +6.8pts

    (1) Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.

    “Our global portfolio delivered significant year-over-year profitability growth. We remained disciplined in the execution of our strategies, focusing on what we can control and continuing to expand our relationships with Key Customers, elevating our performance as market fundamentals became increasingly attractive,” said Fabio Sandri, President and Chief Executive Officer.

    In the U.S., Big Bird realized benefits from enhanced commodity cutout values, further production efficiencies and lower input costs; Case Ready and Small Bird delivered above market growth with Key Customers through differentiated and customized offerings; and Prepared Foods increased its marketplace presence through innovation of branded, value-added items across retail and food service.

    “Our diversified U.S. portfolio enabled our business to capture market upside as conditions evolved in the commodity market. At the same time, we also worked in partnership with our Key Customers to cultivate demand through promotional activity and innovation, further creating value for our customers and consumers alike. We also continued to strengthen our quality and service through operational excellence,” remarked Sandri.

    In Europe, consumer sentiment improved as wage growth surpassed inflation. Given this environment, the team optimized mix with Key Customers and drove branded offerings. Additionally, the team identified and implemented our plan to optimize our manufacturing network and increase efficiencies.

    “Europe’s performance demonstrates the robust nature of our strategies and agility of our team. Our diversified portfolio allowed us to rapidly adjust to consumer preferences and meet Key Customer needs. These efforts were further amplified by continued operational excellence to improve production efficiencies,” said Sandri.

    Mexico improved given continued balance in supply and demand fundamentals in the commodity market, growth with Key Customers across retail and foodservice, and increased momentum of branded offerings in both Fresh and Prepared. Investments in operational excellence to enhance biosecurity in live operations and build capacity also remained on schedule.

    “Mexico continues to drive growth above market for our Key Customers and branded offerings. Given our investments to expand production, we have an opportunity to further develop our marketplace presence and diversify our portfolio,” said Sandri.

    The ramp up of our recently completed protein conversion plant in South Georgia remains on schedule and continues to cultivate additional business from Key Customers.  

    “Our investment in protein conversion reinforces our strategies to drive profitable growth and mitigates our operational risk. We will continue to explore opportunities to strengthen our business and further diversify our portfolio,” remarked Sandri.  

    Conference Call Information

    A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, Aug. 1, 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/ppc240801.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 62,400 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
     IRPPC@pilgrims.com
     www.pilgrims.com


    PILGRIM’S PRIDE CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
         
      (Unaudited)  
      June 30, 2024 December 31, 2023
      (In thousands)
    Cash and cash equivalents $1,317,087  $697,748 
    Restricted cash and restricted cash equivalents  17,039   33,475 
    Trade accounts and other receivables, less allowance for credit losses  1,045,860   1,129,178 
    Accounts receivable from related parties  2,055   1,778 
    Inventories  1,806,244   1,985,399 
    Income taxes receivable  93,259   161,062 
    Prepaid expenses and other current assets  230,610   195,831 
    Total current assets  4,512,154   4,204,471 
    Deferred tax assets  31,980   4,890 
    Operating lease assets, net  270,872   266,707 
    Other long-lived assets  53,236   35,646 
    Intangible assets, net  828,902   853,983 
    Goodwill  1,258,285   1,286,261 
    Property, plant and equipment, net  3,123,028   3,158,403 
    Total assets $10,078,457  $9,810,361 
         
    Accounts payable $1,337,691  $1,410,576 
    Accounts payable to related parties  23,331   41,254 
    Revenue contract liabilities  67,176   84,958 
    Accrued expenses and other current liabilities  999,075   926,727 
    Income taxes payable  56,487   31,678 
    Current maturities of long-term debt  585   674 
    Total current liabilities  2,484,345   2,495,867 
    Noncurrent operating lease liabilities, less current maturities  212,219   203,348 
    Long-term debt, less current maturities  3,183,095   3,340,841 
    Deferred tax liabilities  419,366   385,548 
    Other long-term liabilities  33,951   40,180 
    Total liabilities  6,332,976   6,465,784 
    Common stock  2,621   2,620 
    Treasury stock  (544,687)  (544,687)
    Additional paid-in capital  1,986,198   1,978,849 
    Retained earnings  2,571,797   2,071,073 
    Accumulated other comprehensive loss  (284,390)  (176,483)
    Total Pilgrim’s Pride Corporation stockholders’ equity  3,731,539   3,331,372 
    Noncontrolling interest  13,942   13,205 
    Total stockholders’ equity  3,745,481   3,344,577 
    Total liabilities and stockholders’ equity $10,078,457  $9,810,361 


    PILGRIM’S PRIDE CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
             
      Three Months Ended Six Months Ended
      June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
      (In thousands, except per share data)
    Net sales $4,559,314  $4,308,091  $8,921,248  $8,473,719 
    Cost of sales  3,867,688   4,029,666   7,845,713   8,022,247 
    Gross profit  691,626   278,425   1,075,535   451,472 
    Selling, general and administrative expense  214,161   148,436   333,237   282,114 
    Restructuring activities  36,675   29,718   51,234   37,744 
    Operating income  440,790   100,271   691,064   131,614 
    Interest expense, net of capitalized interest  31,201   47,152   72,444   89,814 
    Interest income  (15,863)  (7,628)  (26,209)  (11,228)
    Foreign currency transaction losses (gains)  (2,225)  16,395   (6,562)  34,538 
    Miscellaneous, net  504   (1,331)  (2,782)  (23,984)
    Income before income taxes  427,173   45,683   654,173   42,474 
    Income tax expense (benefit)  100,650   (15,225)  152,712   (24,065)
    Net income  326,523   60,908   501,461   66,539 
    Less: Net income attributable to noncontrolling interests  220   452   737   896 
    Net income attributable to Pilgrim’s Pride Corporation $326,303  $60,456  $500,724  $65,643 
             
    Weighted average shares of Pilgrim's Pride Corporation common stock outstanding:        
    Basic  236,943   236,733   236,894   236,659 
    Effect of dilutive common stock equivalents  790   476   721   527 
    Diluted  237,733   237,209   237,615   237,186 
             
    Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:        
    Basic $1.38  $0.26  $2.11  $0.28 
    Diluted $1.37  $0.25  $2.11  $0.28 


    PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     
     Six Months Ended
     June 30, 2024 June 25, 2023
     (In thousands)
    Cash flows from operating activities:   
    Net income$501,461  $66,539 
    Adjustments to reconcile net income to cash provided by operating activities:   
    Depreciation and amortization 211,298   203,114 
    Gain on early extinguishment of debt recognized as a component of interest expense (11,159)  — 
    Asset impairment 13,412   4,011 
    Deferred income tax expense (benefit) 8,952   (56,151)
    Stock-based compensation 6,811   3,300 
    Loss (gain) on property disposals 2,715   (9,316)
    Loan cost amortization 2,573   4,733 
    Accretion of discount related to Senior Notes 1,289   980 
    Gain (loss) on equity-method investments (3)  328 
    Changes in operating assets and liabilities:   
    Trade accounts and other receivables 62,350   (54,971)
    Inventories 146,189   (45,242)
    Prepaid expenses and other current assets (43,532)  (27,754)
    Accounts payable, accrued expenses and other current liabilities 14,290   5,139 
    Income taxes 88,631   9,933 
    Long-term pension and other postretirement obligations 3,652   944 
    Other operating assets and liabilities (19,273)  (16,246)
    Cash provided by operating activities 989,656   89,341 
    Cash flows from investing activities:   
    Acquisitions of property, plant and equipment (213,247)  (286,630)
    Proceeds from property disposals 4,551   15,008 
    Proceeds from insurance recoveries —   20,681 
    Cash used in investing activities (208,696)  (250,941)
    Cash flows from financing activities:   
    Payments on revolving line of credit, long-term borrowings and finance lease obligations (150,895)  (565,658)
    Proceeds from revolving line of credit and long-term borrowings —   1,078,032 
    Proceeds from contribution (distribution) of capital under Tax Sharing Agreement between JBS USA Holdings and Pilgrim’s Pride Corporation 1,425   (1,592)
    Payments on early extinguishment of debt (200)  — 
    Payments of capitalized loan costs (16)  (10,353)
    Cash provided by (used in) financing activities (149,686)  500,429 
    Effect of exchange rate changes on cash and cash equivalents (28,371)  3,422 
    Increase in cash, cash equivalents and restricted cash 602,903   342,251 
    Cash, cash equivalents and restricted cash, beginning of period 731,223   434,759 
    Cash, cash equivalents and restricted cash, end of period$1,334,126  $777,010 

    PILGRIM’S PRIDE CORPORATION

    Non-GAAP Financial Measures Reconciliation

    (Unaudited)

    “EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses (gains), (2) costs related to litigation settlements, (3) restructuring activities losses, (4) property insurance recoveries for property damage losses, and (5) net income attributable to noncontrolling interests. EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measures differently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted EBITDA
    (Unaudited)
            
     Three Months Ended Six Months Ended
     June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
     (In thousands)
    Net income$326,523  $60,908  $501,461  $66,539 
    Add:       
    Interest expense, net(a) 15,338   39,524   46,235   78,586 
    Income tax expense (benefit) 100,650   (15,225)  152,712   (24,065)
    Depreciation and amortization 107,948   104,857   211,298   203,114 
    EBITDA 550,459   190,064   911,706   324,174 
    Add:       
    Foreign currency transaction losses (gains)(b) (2,225)  16,395   (6,562)  34,538 
    Litigation settlements(c) 71,250   13,000   72,190   24,200 
    Restructuring activities losses(d) 36,675   29,718   51,234   37,744 
    Minus:       
    Property insurance recoveries(e) —   —   —   19,086 
    Net income attributable to noncontrolling interest 220   452   737   896 
    Adjusted EBITDA$655,939  $248,725  $1,027,831  $400,674 

    (a) Interest expense, net, consists of interest expense less interest income.
    (b) Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
    (c) This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
    (d) Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.
    (e) This represents property insurance recoveries primarily for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.
    (f) The summary unaudited consolidated income statement data for the twelve months ended June 30, 2024 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended June 25, 2023 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 31, 2023 and (2) the applicable unaudited consolidated income statement data for the six months ended June 30, 2024.

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of LTM Adjusted EBITDA
    (Unaudited)
               
      Three Months Ended LTM Ended
      September 24,
    2023    		 December 31,
    2023    		 March 31,
    2024    		 June 30,
    2024    		 June 30,
    2024
      (In thousands)
    Net income $121,567 $134,211  $174,938  $326,523  $757,239 
    Add:          
    Interest expense, net  33,530  54,505   30,897   15,338   134,270 
    Income tax expense  44,553  22,417   52,062   100,650   219,682 
    Depreciation and amortization  104,300  112,486   103,350   107,948   428,084 
    EBITDA  303,950  323,619   361,247   550,459   1,539,275 
    Add:          
    Foreign currency transaction losses (gains)  8,924  (22,892)  (4,337)  (2,225)  (20,530)
    Litigation settlements  10,500  4,700   940   71,250   87,390 
    Restructuring activities losses  940  5,661   14,559   36,675   57,835 
    Minus:          
    Property insurance recoveries  —  2,038   —   —   2,038 
    Net income (loss) attributable to noncontrolling interest  289  (442)  517   220   584 
    Adjusted EBITDA $324,025 $309,492  $371,892  $655,939  $1,661,348 

    EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe it is frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of EBITDA Margin
    (Unaudited)
                     
      Three Months Ended Six Months Ended Three Months Ended Six Months Ended
      June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
      (In thousands)
    Net income $326,523  $60,908  $501,461  $66,539  7.16% 1.41% 5.62% 0.79%
    Add:                
    Interest expense, net  15,338   39,524   46,235   78,586  0.34% 0.92% 0.52% 0.93%
    Income tax expense (benefit)  100,650   (15,225)  152,712   (24,065) 2.21% (0.35)% 1.71% (0.28)%
    Depreciation and amortization  107,948   104,857   211,298   203,114  2.36% 2.43% 2.36% 2.39%
    EBITDA  550,459   190,064   911,706   324,174  12.07% 4.41% 10.21% 3.83%
    Add:                
    Foreign currency transaction losses (gains)  (2,225)  16,395   (6,562)  34,538  (0.04)% 0.38% (0.07)% 0.40%
    Litigation settlements  71,250   13,000   72,190   24,200  1.56% 0.30% 0.81% 0.29%
    Restructuring activities losses  36,675   29,718   51,234   37,744  0.80% 0.69% 0.57% 0.45%
    Minus:                
    Property insurance recoveries  —   —   —   19,086  —% —% —% 0.23%
    Net income attributable to noncontrolling interest  220   452   737   896  —% 0.01% 0.01% 0.01%
    Adjusted EBITDA $655,939  $248,725  $1,027,831  $400,674  14.39% 5.77% 11.51% 4.73%
                     
    Net sales $4,559,314  $4,308,091  $8,921,248  $8,473,719  —  —  —  — 

    Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted EBITDA
    (Unaudited)
                    
     Three Months Ended Three Months Ended
     June 30, 2024 June 25, 2023
     U.S. Europe Mexico Total U.S. Europe Mexico Total
     (In thousands) (In thousands)
    Net income (loss)$199,076  $41,511  $85,936  $326,523  $(21,335) $11,929  $70,314  $60,908 
    Add:               
    Interest expense, net(a) 24,946   (2,556)  (7,052)  15,338   43,538   (623)  (3,391)  39,524 
    Income tax expense (benefit) 82,117   (14,212)  32,745   100,650   (14,026)  (6,730)  5,531   (15,225)
    Depreciation and amortization 67,200   34,865   5,883   107,948   63,759   35,279   5,819   104,857 
    EBITDA 373,339   59,608   117,512   550,459   71,936   39,855   78,273   190,064 
    Add:               
    Foreign currency transaction losses (gains)(b) (1)  (39)  (2,185)  (2,225)  28,546   (1,482)  (10,669)  16,395 
    Litigation settlements(c) 71,250   —   —   71,250   13,000   —   —   13,000 
    Restructuring activities losses(d) —   36,675   —   36,675   —   29,718   —   29,718 
    Minus:               
    Net income attributable to noncontrolling interest —   —   220   220   —   —   452   452 
    Adjusted EBITDA$444,588  $96,244  $115,107  $655,939  $113,482  $68,091  $67,152  $248,725 

    (a) Interest expense, net, consists of interest expense less interest income.
    (b) Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
    (c) This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
    (d) Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.     

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted EBITDA
    (Unaudited)
                    
     Six Months Ended Six Months Ended
     June 30, 2024 June 25, 2023
     U.S. Europe Mexico Total U.S. Europe Mexico Total
     (In thousands) (In thousands)
    Net income (loss)$301,707 $66,023  $133,731  $501,461  $(74,925) $32,742  $108,722  $66,539 
    Add:               
    Interest expense, net(a) 69,532  (4,539)  (18,758)  46,235   84,903   (821)  (5,496)  78,586 
    Income tax expense (benefit) 114,177  (4,655)  43,190   152,712   (30,848)  (807)  7,590   (24,065)
    Depreciation and amortization 129,885  69,893   11,520   211,298   123,996   67,556   11,562   203,114 
    EBITDA 615,301  126,722   169,683   911,706   103,126   98,670   122,378   324,174 
    Add:               
    Foreign currency transaction losses (gains)(b) 1  (255)  (6,308)  (6,562)  48,859   (2,098)  (12,223)  34,538 
    Litigation settlements(c) 72,190  —   —   72,190   24,200   —   —   24,200 
    Restructuring activities losses(d) —  51,234   —   51,234   —   37,744   —   37,744 
    Minus:               
    Property insurance recoveries(e) —  —   —   —   19,086   —   —   19,086 
    Net income attributable to noncontrolling interest —  —   737   737   —   —   896   896 
    Adjusted EBITDA$687,492 $177,701  $162,638  $1,027,831  $157,099  $134,316  $109,259  $400,674 

    (a) Interest expense, net, consists of interest expense less interest income.
    (b) Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
    (c) This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
    (d) Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.
    (e) This represents property insurance recoveries primarily for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.

    Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted Operating Income
    (Unaudited)
            
     Three Months Ended Six Months Ended
     June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
     (In thousands)
    GAAP operating income, U.S. operations$307,988  $37,265  $487,405  $9,159 
    Litigation settlements 71,250   13,000   72,190   24,200 
    Adjusted operating income, U.S. operations$379,238  $50,265  $559,595  $33,359 
            
    Adjusted operating income margin, U.S. operations 14.2%  2.1%  10.7%  0.7%
            
     Three Months Ended Six Months Ended
     June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
     (In thousands)
    GAAP operating income, Europe operations$23,993  $2,513  $55,109  $27,774 
    Restructuring activities losses 36,675   29,718   51,234   37,744 
    Adjusted operating income, Europe operations$60,668  $32,231  $106,343  $65,518 
            
    Adjusted operating income margin, Europe operations 4.7%  2.5%  4.1%  2.6%
            
     Three Months Ended Six Months Ended
     June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
     (In thousands)
    GAAP operating income, Mexico operations$108,809  $60,719  $148,550  $94,894 
    No adjustments —   —   —   — 
    Adjusted operating income, Mexico operations$108,809  $60,719  $148,550  $94,894 
            
    Adjusted operating income margin, Mexico operations 18.3%  11.0%  13.4%  9.1%

    Adjusted Operating Income Margin for each of our reportable segments is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income margin for each of our reportable segments to adjusted operating income margin for each of our reportable segments is as follows:

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin
    (Unaudited)
            
     Three Months Ended Six Months Ended
     June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
     (In percent)
    GAAP operating income margin, U.S. operations11.6% 1.5% 9.3% 0.2%
    Litigation settlements2.6% 0.6% 1.4% 0.5%
    Adjusted operating income margin, U.S. operations14.2% 2.1% 10.7% 0.7%
            
     Three Months Ended Six Months Ended
     June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
     (In percent)
    GAAP operating income margin, Europe operations1.8% 0.2% 2.1% 1.1%
    Restructuring activities losses2.9% 2.3% 2.0% 1.5%
    Adjusted operating income margin, Europe operations4.7% 2.5% 4.1% 2.6%
            
     Three Months Ended Six Months Ended
     June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
     (In percent)
    GAAP operating income margin, Mexico operations18.3% 11.0% 13.4% 9.1%
    No adjustments—% —% —% —%
    Adjusted operating income margin, Mexico operations18.3% 11.0% 13.4% 9.1%

    Adjusted net income attributable to Pilgrim's Pride Corporation (“Pilgrim's”) is calculated by adding to Net income attributable to Pilgrim's certain items of expense and deducting from Net income attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’s Pride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performance under U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP. Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income (loss) attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of Adjusted Net Income
    (Unaudited)
            
     Three Months Ended Six Months Ended
     June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
     (In thousands, except per share data)
    Net income attributable to Pilgrim's$326,303  $60,456  $500,724  $65,643 
    Add:       
    Foreign currency transaction losses (gains) (2,225)  16,395   (6,562)  34,538 
    Litigation settlements 71,250   13,000   72,190   24,200 
    Restructuring activities losses 36,675   29,718   51,234   37,744 
    Minus:       
    Gain on early extinguishment of debt 11,159   —   11,159   — 
    Property insurance recoveries —   —   —   19,086 
    Adjusted net income attributable to Pilgrim's before tax impact of adjustments 420,844   119,569   606,427   143,039 
    Net tax impact of adjustments(a) (22,879)  (14,306)  (25,580)  (18,729)
    Adjusted net income attributable to Pilgrim's$397,965  $105,263  $580,847  $124,310 
    Weighted average diluted shares of common stock outstanding 237,733   237,209   237,615   237,186 
    Adjusted net income attributable to Pilgrim's per common diluted share$1.67  $0.44  $2.44  $0.52 

    (a) Net tax expense (benefit) of adjustments represents the tax impact of all adjustments shown above.

    Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:

    PILGRIM'S PRIDE CORPORATION
    Reconciliation of GAAP EPS to Adjusted EPS
    (Unaudited)
            
     Three Months Ended Six Months Ended
     June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
     (In thousands, except per share data)
    GAAP EPS$1.37  $0.25  $2.11  $0.28 
    Add:       
    Foreign currency transaction losses (gains) (0.01)  0.07   (0.03)  0.15 
    Litigation settlements 0.30   0.05   0.30   0.09 
    Restructuring activities losses 0.15   0.13   0.23   0.16 
    Minus:       
    Gain on early extinguishment of debt 0.05   —   0.05   — 
    Property insurance recoveries —   —   —   0.08 
    Adjusted EPS before tax impact of adjustments 1.76   0.50   2.56   0.60 
    Net tax impact of adjustments(a) (0.09)  (0.06)  (0.12)  (0.08)
    Adjusted EPS$1.67  $0.44  $2.44  $0.52 
            
    Weighted average diluted shares of common stock outstanding 237,733   237,209   237,615   237,186 

    (a) Net tax impact of adjustments represents the tax impact of all adjustments shown above.

    PILGRIM'S PRIDE CORPORATION
    Supplementary Selected Segment and Geographic Data
    (Unaudited)
             
      Three Months Ended Six Months Ended
      June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023
      (In thousands)
    Sources of net sales by geographic region of origin:        
    U.S. $2,663,965 $2,446,208  $5,243,297 $4,878,776 
    Europe  1,301,541  1,310,750   2,569,444  2,550,014 
    Mexico  593,808  551,133   1,108,507  1,044,929 
    Total net sales $4,559,314 $4,308,091  $8,921,248 $8,473,719 
             
    Sources of cost of sales by geographic region of origin:        
    U.S. $2,211,626 $2,332,103  $4,553,666 $4,726,342 
    Europe  1,187,671  1,223,722   2,363,409  2,378,793 
    Mexico  468,391  473,615   928,638  916,899 
    Elimination  —  226   —  213 
    Total cost of sales $3,867,688 $4,029,666  $7,845,713 $8,022,247 
             
    Sources of gross profit by geographic region of origin:        
    U.S. $452,339 $114,105  $689,631 $152,434 
    Europe  113,870  87,028   206,035  171,221 
    Mexico  125,417  77,518   179,869  128,030 
    Elimination  —  (226)  —  (213)
    Total gross profit $691,626 $278,425  $1,075,535 $451,472 
             
    Sources of operating income by geographic region of origin:        
    U.S. $307,988 $37,265  $487,405 $9,159 
    Europe  23,993  2,513   55,109  27,774 
    Mexico  108,809  60,719   148,550  94,894 
    Elimination  —  (226)  —  (213)
    Total operating income $440,790 $100,271  $691,064 $131,614 

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