Pilgrim's(US:PPC)2025-10-29 22:34Financial Performance - Net sales for Q3 2025 reached $4.8 billion, with a consolidated GAAP operating income margin of 10.4%[2] - GAAP net income was $343.1 million, resulting in a GAAP EPS of $1.44, while adjusted net income was $362.9 million with an adjusted EPS of $1.52[2] - Adjusted EBITDA for the quarter was $633.1 million, representing a margin of 13.3%[2] - Net sales for the three months ended September 28, 2025, were $4,759,342, an increase of 3.8% compared to $4,584,979 for the same period in 2024[17] - Gross profit for the nine months ended September 28, 2025, was $1,929,552, representing a 9.6% increase from $1,759,505 in the prior year[17] - Operating income for the three months ended September 28, 2025, was $492,608, a decrease of 3.1% from $508,354 in the same period of 2024[17] - Net income for the three months ended September 28, 2025, was $343,061,000, compared to $349,990,000 for the same period in 2024, reflecting a decrease of approximately 2.7%[31] - Adjusted EBITDA for the three months ended September 28, 2025, was $633,078,000, down from $660,379,000 in the same period of 2024, indicating a decline of about 4.1%[34] - Net income for the nine months ended September 28, 2025, was $995.413 million, an increase from $851.451 million for the same period in 2024, representing a growth of approximately 16.9%[39] - Adjusted EBITDA for the nine months ended September 28, 2025, was $1,853.225 million, compared to $1,688.210 million for the same period in 2024, reflecting an increase of about 9.8%[39] Sales Growth - U.S. Prepared Foods net sales increased by over 25% compared to the prior year, with Just Bare leading growth in the retail frozen fully cooked category[2] - In Mexico, Prepared Foods sales increased by 9% year-over-year, driven by Key Customer demand in fresh[2] - U.S. net sales for the three months ended September 28, 2025, were $2,836,613,000, an increase of 2.3% from $2,773,391,000 in the same period of 2024[59] - Europe contributed $1,392,495,000 to net sales for the three months ended September 28, 2025, reflecting an increase of 6.4% from $1,308,127,000 in the prior year[59] Investments and Agreements - The company announced new investments exceeding $500 million over the next two years to support growth with Key Customers in Fresh and diversify its portfolio[2] - In Europe, a new 10-year supply agreement was established to support a Key Customer, with Fridge Raiders and Rollover growing faster than category averages[2] Environmental and Safety Initiatives - Pilgrim's Pride reduced its global Scope 1 & 2 emissions intensity by 23% since 2019 and improved its Global Safety Index by 77%[2] Financial Position and Liquidity - The company maintained a strong liquidity position with net leverage approximately 1.0 times of Adjusted EBITDA after $2 billion in special dividends during the year[2] - Total assets as of September 28, 2025, were $9.95 billion, with total liabilities at $6.40 billion[15] Operating Expenses and Other Financial Metrics - Interest expense for the three months ended September 28, 2025, was $28,990,000, compared to $19,498,000 in the same period of 2024, reflecting an increase of about 48.7%[31] - Income tax expense for the three months ended September 28, 2025, was $118,319,000, down from $131,609,000 in the same period of 2024, indicating a decrease of approximately 10.1%[31] - Depreciation and amortization for the three months ended September 28, 2025, was $116,426,000, compared to $110,470,000 in the same period of 2024, reflecting an increase of about 5.4%[31] - Payments for dividends amounted to $1,994,347 for the nine months ended September 28, 2025, with no payments in the prior year[19] Litigation and Restructuring - The company reported litigation settlements of $19,582,000 for the three months ended September 28, 2025, compared to no settlements in the same period of 2024[52] - Restructuring activities losses for the three months ended September 28, 2025, were $1,779,000, down from $30,836,000 in the same period of 2024, indicating a significant decrease of approximately 94.2%[34] - Restructuring activities losses in Europe amounted to $21.890 million for the nine months ended September 28, 2025, compared to $82.070 million in the same period of 2024[46]