PPC Q1 Earnings Beat Estimates, U.S. Operations Drive Sales Growth

Core Insights - Pilgrim's Pride Corporation (PPC) reported a strong performance in Q1 2025, with both revenue and earnings increasing compared to the previous year, and earnings exceeding the Zacks Consensus Estimate [1][2] Financial Performance - Adjusted earnings per share were $1.31, up from $0.77 in the same quarter last year, and surpassed the Zacks Consensus Estimate of $1.26 [2] - Net sales reached $4,463 million, reflecting a 2.3% increase from the prior year [2] - Cost of sales decreased to $3,908.1 million from $3,978 million, leading to a gross profit increase to $554.9 million from $383.9 million [3] - Adjusted EBITDA rose to $533.2 million from $371.9 million, with an adjusted EBITDA margin expanding by 350 basis points to 12% [3] - Operating income increased to $404.5 million from $250.3 million year over year [3] Segment Analysis - U.S. operations generated net sales of $2,743.2 million, up from $2,579.3 million, benefiting from seasonal strength in commodity prices and production efficiencies [4] - The Case Ready and Small Bird segments experienced volume growth due to expanded distribution with key customers [5] - European operations saw a decline in net sales to $1,231.5 million from $1,267.9 million, but achieved an adjusted EBITDA margin of 8.1%, improving by over 150 basis points [6] - Mexico operations reported net sales of $488.3 million, down from $514.7 million, but improved profitability through stronger customer partnerships and favorable pricing [7] Financial Health - The company ended the quarter with cash and cash equivalents of $2,066.8 million and long-term debt of $3,199.7 million [8] - Cash from operating activities for the quarter was $126.9 million [8] - PPC's stock has gained 14.2% over the past three months, outperforming the industry growth of 3.3% [8]