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

Core Insights - Pilgrim's Pride Corporation reported strong financial results for Q2 2024, with net sales reaching $4.6 billion and a GAAP net income of $326.5 million, reflecting a significant year-over-year growth in profitability [2][4]. Financial Performance - Net sales increased by 5.8% year-over-year from $4.3 billion in Q2 2023 to $4.6 billion in Q2 2024 [3]. - GAAP operating income margin was 9.7%, with GAAP EPS rising to $1.37, a 448% increase compared to $0.25 in the same quarter last year [2][3]. - Adjusted EBITDA for the quarter was $655.9 million, representing a 163.7% increase from $248.7 million in Q2 2023, with an adjusted EBITDA margin of 14.4% [2][3]. Segment Performance - The U.S. segment showed strong performance, with adjusted EBITDA margins of 16.7%, driven by improved market conditions and operational excellence [2][3]. - In Europe, adjusted EBITDA grew over 40% year-over-year, supported by better customer mix and operational improvements [2][3]. - Mexico's performance improved due to balanced commodity supply and demand, with growth in both fresh and prepared offerings [2][3]. Strategic Initiatives - The company is focusing on diversifying its product offerings, with notable growth in its prepared foods segment and the launch of over 85 new products [2][3]. - Investments in a new protein conversion plant in South Georgia are on schedule, aimed at supporting future growth and enhancing operational capabilities [2][3][10]. Market Conditions - Enhanced commodity fundamentals and disciplined execution of strategies contributed to the improved performance in the U.S. market [5][6]. - Consumer sentiment in Europe improved as wage growth outpaced inflation, allowing the company to optimize its customer mix and drive branded offerings [7][8]. Liquidity and Financial Health - The company maintains a strong liquidity position with a net leverage ratio of 1.1x adjusted EBITDA, providing a solid foundation for executing growth strategies [2][3].