A Chinese delegation is expected to visit the southern Brazilian state of Rio Grande do Sul which was hit by a bird flu outbreak in May, raising hopes Brazil may resume selling poultry products to its top buyer soon. ...

Financial Data and Key Indicators Changes - The company reported a record-breaking revenue of €10,000,000 for the first half of 2025, representing a 70% year-on-year growth [4] - Gross profit reached €4,300,000, marking a 183% increase [4] - EBITDA for the period was €3,500,000, reflecting a 250% growth [5] - The net profit for the first half of 2025 was €1,700,000, a significant improvement compared to previous losses [25][26] - The return on equity reached 34%, and earnings per share were at a historically high level of €0.60 [26][27] Business Line Data and Key Indicators Changes - The company sold 59,000,000 eggs in the first half of 2025, achieving a 23% year-on-year growth [4] - The share of industrial egg sales was reduced to 11%, aligning closely with the natural production split [18] - The product line under the trademark VTech Squared, which includes premium egg white protein powders and bars, is gaining traction, with 94% of sales coming from Latvia [12] Market Data and Key Indicators Changes - The total egg market in the Baltic states showed growth, particularly in the bar and egg segment, with Lithuania leading at over 60% market share [15] - The company has significantly increased its exports, particularly to Lithuania, with export income rising almost three times compared to the previous period [22] Company Strategy and Development Direction - The company completed an investment phase of €13,000,000, enhancing production capacity by 60% [9] - The strategic focus is on transitioning to cage-free production, with expectations of increased demand for higher welfare products [30][45] - The company aims to expand its presence in the retail fitness and lifestyle channels through the VTech Squared product line [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue target of €22,600,000 for 2025, a 7% upward adjustment from previous guidance [27][28] - The completion of the investment phase is expected to support strong revenue growth in the second half of the year [28] - The management acknowledged challenges in the market transition to cage-free production but remains optimistic about capturing market share [43][45] Other Important Information - The company has launched a shareholder loyalty program, expected to be announced around International Egg Day in October [35][36] - The company is exploring additional capital raises for future development projects, balancing growth with leverage [42] Q&A Session Summary Question: Will the shareholders' loyalty program include benefits for the FinTech Squared production? - Yes, the loyalty program was approved and will include attractive components for loyal customers, expected to launch within six to eight weeks [35] Question: What drove the 70% growth of the revenue in 2025? - The growth was driven by an increase in the number of eggs sold, higher market prices, and a shift in product mix towards retail clients [38] Question: Is gross profit margin improvement sustainable? - Yes, the gross margin improvement is expected to be sustainable due to the shift towards cage-free production and increased capacity [39] Question: How do you manage rising feed or energy costs? - Feed and energy costs are fixed for the maximum period possible, and the company has built a solar park to partially compensate for energy consumption [40] Question: Do you expect to raise any additional capital in 2025? - Current capacity expansion is fully funded, but additional capital may be raised for new development projects if opportunities arise [42] Question: How do you see the cage-free transition affecting the APF? - The transition is viewed as a tailwind, with the company well-positioned to capture market share and premium pricing as cage-free becomes the industry standard [45] Question: What is your export strategy? - The strategy focuses on diversification, with exports already above 50% of sales, and plans to increase exports as a percentage of overall sales [46] Question: Are there any plans to distribute dividends in the future? - The dividend policy remains intact, with up to 50% of profits expected to be distributed based on the financial results of 2025 [60][61]

Financial Performance - Group Underlying EBITDA pre AASB 16 was stable at $236.4 million, despite customer changes and softer market conditions in the fourth quarter[14] - Australia's Underlying EBITDA pre AASB 16 decreased by 3.4% to $183.7 million due to Woolworths supply agreement changes and weaker trading in Q4 2025[16] - New Zealand's Underlying EBITDA pre AASB 16 increased significantly by 14.3% to $52.7 million, driven by favorable market economics, innovation, and brand investments[16] - Core poultry volume declined by 1.4% to 461.2kt, with Australia down 2.5% to 388.0kt and New Zealand up 5.2% to 73.2kt[16, 17] - The company declared dividends of 19.0 cents per share, a decrease of 1.0 cent per share compared to the prior corresponding period[17] Cost Management and Market Dynamics - Feed costs decreased by $57.2 million, contributing to overall cost savings[16, 38] - Net Selling Price (NSP) growth was modest at 0.5%, reaching $6.31/kg, masking significant wholesale pricing pressure[16, 29] - Wholesale pricing declined by 9.2% in FY25, impacting margins[29] Capital Expenditure and Future Outlook - Capital expenditure for FY25 totaled $104.1 million, focused on sustaining and investing projects[47, 48] - FY26 Underlying EBITDA (pre AASB 16) is expected to be between $215.0 million and $230.0 million, with a stronger performance anticipated in the second half of the year[102] - The company is implementing $60–$80 million of annualised structural cost reductions to largely offset general FY26 cost inflation[101]

Financial Data and Key Metrics Changes - The company reported net revenue of BRL 15.4 billion, a 3% increase compared to the same period in 2024 [5] - EBITDA for the quarter was BRL 2.5 billion, contributing to a year-to-date total of BRL 5.3 billion, which is 11% higher than the same period last year [5][6] - Net income for the quarter was BRL 735 million, with a total of BRL 1.9 billion for the semester [5] - Free cash flow was approximately BRL 850 million, or BRL 1.3 billion when excluding the impact of the Hannon plant acquisition in China [5] - The company achieved a leverage ratio of 0.43 times LTM EBITDA, the lowest in its history [6] Business Line Data and Key Metrics Changes - In Brazil, EBITDA reached BRL 1.3 billion with a margin of 16.4%, driven by volume growth in processed products [7] - The international market showed healthy margins, with an EBITDA margin of 170.3% for the quarter [9] - The ingredients and pets segment reported EBITDA of BRL 52 million, with an 8% increase in the customer base for pet products [11] Market Data and Key Metrics Changes - The company expanded its active customer base in Brazil to over 330,000 points of sale, achieving the highest second-quarter sales volume [7] - In Turkey, processed product volumes grew by 7% year-over-year, maintaining market share leadership [9] - The company gained 1.4 percentage points in market share in processed products in the GCC region [9] Company Strategy and Development Direction - The company emphasized its market diversification strategy, which is essential for growth and resilience against market fluctuations [15][17] - The launch of the Sadia Fresh line in Saudi Arabia is part of the strategy to strengthen its halal market presence [15] - The company continues to focus on expanding its portfolio of value-added products through strategic partnerships [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's journey towards sustainable growth, emphasizing operational excellence and financial discipline [18] - The company is prepared for potential challenges in the market, including the impact of avian influenza, and has contingency plans in place [25][66] - Management highlighted the importance of maintaining a competitive edge through data intelligence and timely decision-making [17] Other Important Information - The company reported a reduction in net debt to BRL 4.7 billion, the lowest since 2011, contributing to lower interest expenses [14] - The company has made significant progress in ESG initiatives, including greenhouse gas emission management and community education programs [12] Q&A Session All Questions and Answers Question: Impact of avian flu and market recovery potential - Management noted that the impact of avian flu was limited due to the opening of 198 new export permits, allowing for agile market reallocation [21][24] - The company is optimistic about recovering margins as markets, particularly in China, are expected to reopen soon [25] Question: Cost expectations in light of commodity price changes - Management indicated that a decrease in animal feed costs is anticipated in the second half of the year, with a potential 2% reduction in costs [30] - The company is monitoring labor costs closely, which may face inflationary pressures due to low unemployment [68] Question: Price resilience and future pricing strategies - Management confirmed that prices in Brazil have increased by 11% year-over-year for processed products, with further price adjustments expected [37] - The company is confident in maintaining price resilience due to strong domestic demand and employment levels [34] Question: Gross margin and production capacity - Management stated that the gross margin achieved was the highest since 2015, with expectations of maintaining profitability levels [40] - The company has effectively utilized its production capacity, reducing idle capacity significantly since 2022 [43] Question: Industry fundamentals and future outlook - Management believes that demand will continue to outpace supply in the poultry and beef sectors, with no significant changes expected in fundamentals [50] - The company is well-positioned to navigate competitive pressures and maintain strong margins [56]

Market Competition - The fast-food industry continues to see rivalry in attracting consumers with crispy poultry, ongoing since 2019 [1]

Financial Performance - Pilgrim's Pride reported non-GAAP EPS of $1.70, exceeding the consensus estimate of $1.57, and GAAP revenue of $4.76 billion, surpassing estimates of $4.62 billion, marking a 4.3% increase from $4.56 billion in Q2 FY2024 [1][2] - Adjusted EBITDA reached $687 million, with a stable margin of 14.4%, while GAAP operating income increased by 16.2% to $512.3 million compared to the previous year [8][10] - A special dividend of $500 million was approved, reflecting strong liquidity and financial flexibility, with net leverage remaining under one times adjusted EBITDA [10][16] Business Overview - Pilgrim's Pride is a leading global poultry company, focusing on fresh, value-added, and prepared chicken products across the U.S., Europe, Mexico, and over 120 export markets [3] - The company employs approximately 62,200 people and operates 49 hatcheries, 35 feed mills, 39 processing plants, and 29 distribution centers [3] Operational Highlights - The U.S. segment saw GAAP net sales rise by 5.9% to $2.82 billion, with operating income increasing by 15.3% to $354.99 million [5] - Prepared Foods category experienced over 20% sales growth, with the Just Bare brand achieving over 10% market share in fully cooked chicken [5][11] - In Europe, GAAP revenue improved by 5.4% to $1.37 billion, with operating income margin expanding from 4.7% to 5.4% [6][12] - Mexico faced challenges with a revenue decline of 4.7% to $565.7 million, attributed to currency headwinds and tough year-ago comparisons, although chicken volumes shipped increased by over 5% [7][13] Strategic Focus - Recent strategies emphasize product and geographic diversification, margin improvement, and operational efficiency [4] - The company maintains control over costs, particularly feed, and focuses on expanding sales of higher-margin prepared foods [4][14] - Vertical integration remains a key feature, allowing the company to manage costs and respond to consumer and regulatory changes effectively [14] Future Outlook - Management reiterated a focus on capital discipline and long-term investment in high-growth prepared foods and international markets, with capital spending targeted at $750 million for FY2025 [15] - No formal new financial guidance was issued, but ongoing monitoring of commodity costs and market conditions in Mexico is advised [16]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported net revenues of $4.8 billion, a 4.3% increase compared to the same quarter last year [5] - Adjusted EBITDA was $687 million, up 4.7% versus 2024, with an adjusted EBITDA margin of 14.4%, consistent with the previous year [5][31] - U.S. net revenues increased nearly 6% to $2.82 billion, with adjusted EBITDA of $482.7 million, reflecting strong profitability improvements [32][33] Business Line Data and Key Metrics Changes - The U.S. diversified fresh portfolio benefited from favorable commodity values and strong customer demand, leading to growth in branded offerings [6] - Prepared foods saw a significant growth of 20% in net sales compared to last year, driven by increased distribution and consumer interest [17][18] - The Big Bird segment maintained favorable cutout values despite volatility, with profitability significantly improved year over year [16] Market Data and Key Metrics Changes - In the U.S., ready-to-cook chicken production grew by 1.9% compared to 2024, with USDA estimating a 1.5% growth for 2025 [7][8] - Retail chicken demand increased as consumers sought affordability, with chicken gaining market share in both retail and food service [10][56] - In Europe, chicken remained the fastest-growing category, although overall demand was impacted by rising living costs [19][68] Company Strategy and Development Direction - The company announced a $400 million investment to build a new fully cooked prepared food plant in Georgia, aimed at capitalizing on long-term growth trends [25][39] - The focus remains on portfolio diversification, operational excellence, and enhancing relationships with key customers [22][41] - The company is committed to expanding its prepared foods and branded offerings, particularly in the no antibiotics ever (NAE) segment [49][101] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging due to inflation and consumer spending concerns, but demand for chicken is expected to remain strong [14][56] - The company anticipates continued growth in the prepared foods segment, supported by strong consumer interest and innovative product offerings [26][39] - Management expressed confidence in meeting growing demand while managing production constraints effectively [76][82] Other Important Information - A special dividend of approximately $500 million was declared, reflecting the company's strong cash flow and balance sheet [7][38] - The company is navigating labor market challenges by overstaffing plants to ensure operational efficiency [88][90] - The effective tax rate for the quarter was 25.1%, with expectations for the full year to approximate 25% [36] Q&A Session Summary Question: Clarification on the $400 million investment in Georgia - The majority of the $400 million will be spent in 2026, with an estimated $50 million to $70 million in 2025 [46][47] Question: Supply versus demand dynamics in the chicken market - Management indicated that while supply is increasing, demand remains strong, particularly in the retail sector [52][56] Question: Update on industry production constraints - The industry is focusing on improving hatchability and productivity to meet demand, with challenges still present [62][63] Question: Margin progression in Europe - Management expects seasonal improvements in margins, with Q4 typically being the strongest [70][68] Question: Profitability outlook in Mexico - The Mexican market remains stable with double-digit growth, despite currency volatility impacting revenue [108]

▪ 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 sta ...

Canada’s finance minister signaled that any trade deal with the US is likely to include at least some tariffs, and repeated that the country’s dairy and poultry protections won’t be on the table during negotiations https://t.co/54Rmy4mVnx ...

Core Insights - The article emphasizes the positive performance of Brazilian equities, particularly highlighting BRF S.A. as a potential undervalued stock that could benefit from current market conditions [1]. Company Analysis - BRF S.A. is identified as a key investment opportunity within the Brazilian market, suggesting that it is undervalued and could provide significant returns [1]. Market Context - The article notes that the favorable performance of Brazilian stocks has occurred despite trade headwinds influenced by the Trump administration, indicating resilience in the market [1].