Core Viewpoint - Almunajem Foods Co. and Balady Poultry have entered a seven-year processing and distribution partnership aimed at enhancing market share and operational efficiency in the poultry sector in Saudi Arabia [1][4] Group 1: Partnership Details - The partnership involves Balady Poultry producing and packaging poultry products for both companies under a profit-sharing agreement, while Almunajem Foods will handle marketing and distribution [1] - The agreement is designed to support shared growth and improve the quality of locally produced poultry products in the Saudi market [4] Group 2: Financial Performance - Almunajem Foods reported a 2.2% increase in revenue for Q3 2023, reaching SR816.1 million ($217.6 million), but experienced a 5.2% decline in operating profit to SR36.4 million and a 21.7% drop in net profit to SR31.7 million [5] - For the first nine months of 2023, Almunajem Foods' revenue decreased by 0.5% to SR2.51 billion, with operating profit down 46% to SR118.3 million and net profit down 52% to SR102.7 million [5] - Balady Poultry's Q3 revenue increased by 0.5% to SR218.9 million, but year-to-date revenue fell by 4.9% to SR634.1 million, with operating profit declining 67% for the quarter and 72% for the nine months [6] Group 3: Management Changes - Almunajem Foods announced the resignation of CEO Bin Abdulaziz Abanumay effective December 31, with Ali Hasan El Zain appointed as the new CEO starting January 1 [3]

Core Viewpoint - The retail prices of eggs and white-feathered chickens in 36 major cities in China have increased due to post-holiday restocking, with eggs rising by 0.6% and white-feathered chickens by 0.1% from January 5 to January 11 [1] Price Changes - The price of eggs in southern regions has seen a significant increase, with Hefei and Xiamen experiencing rises of 2.3% and 2.0% respectively [1] - In the central region, the price of white-feathered chickens has also increased notably, with Zhengzhou and Wuhan seeing increases of 1.4% and 1.1% respectively [1]

Core Insights - Pilgrim's Pride Corporation (PPC) is focusing on brand and portfolio diversification to manage volatility in commodity-driven poultry markets, as highlighted in their third-quarter 2025 results [1] U.S. Business Performance - Diversification across bird sizes, including Case Ready, Small Bird, and Big Bird, helped maintain margins in the U.S. business despite volatile chicken prices in September 2025 [2] - The Prepared Foods segment saw net sales increase by over 25%, with the Just BARE brand gaining nearly 300 basis points of market share, reducing reliance on commodity pricing [2] International Market Strategy - In Mexico, PPC is reducing exposure to live market volatility by expanding value-added Prepared Foods, which experienced a 9% sales increase in the quarter [3] - The strategy of growing prepared and branded offerings is aimed at balancing fluctuations in fresh-market pricing and strengthening customer relationships [3] European Market Adaptation - In Europe, brand differentiation is being utilized to navigate broader protein market pressures, with brands like Fridge Raiders and Rollover growing faster than their respective categories [4] Investment Plans - PPC has outlined over $500 million in planned U.S. investments over the next two years to expand Prepared Foods capacity and convert select facilities to Case Ready production [5] - These investments are intended to enhance operational flexibility and support growth in branded and value-added products, moderating the impact of market volatility over time [5] Stock Performance - PPC shares have gained 5.3% over the past month, outperforming the industry's decline of 1.8% and the S&P 500 index's growth of 2.7% [6] Valuation Metrics - Pilgrim's Pride currently trades at a forward 12-month P/E ratio of 9.69, which is below the industry average of 12.8 and the sector average of 16.64, positioning the stock at a modest discount relative to peers and the broader consumer staples sector [10]

Product & Pricing - KellyBronze turkeys are positioned as a high-end product, costing $500 for 32 pounds [1] - The turkeys are considered the "Rolls-Royce" of the poultry industry [1] Market Opportunity - KellyBronze is aiming to "gobble up" the market [1]

Trade Restriction - Beijing imposed a ban on imports of all poultry and related products from Brazil [1] Health Crisis - The import ban was triggered by a bird flu outbreak in Brazil [1] Timeline - The ban was implemented in May [1]

Financial Performance - Net revenue increased to $4,759.3 million in Q3 2025 from $4,585.0 million in Q3 2024[4] - Gross profit decreased from $684.0 million in Q3 2024 to $659.4 million in Q3 2025[4] - Operating income decreased to $492.6 million in Q3 2025 from $508.4 million in Q3 2024[4] - Net income decreased slightly to $343.1 million in Q3 2025 from $350.0 million in Q3 2024[4] - Adjusted EBITDA decreased year-over-year, primarily due to lower pricing in Mexico and lower volume in Europe[6] - Adjusted EBITDA margin decreased from 14.4% to 13.3%[4] - Net interest increased from $19.5 million to $29.0 million due to lower YoY cash balance during Q3 2025, as a result of the $2 billion in dividends paid in 2025[4, 6] Segment Performance - U S net revenue was $2,836.6 million with an adjusted operating income of $403.7 million and a margin of 14.2%[5] - Europe net revenue was $1,392.5 million with an adjusted operating income of $71.3 million and a margin of 5.1%[5] - Mexico net revenue was $530.2 million with an adjusted operating income of $39.0 million and a margin of 7.4%[5] Production and Inventory - Pullet placements increased 0.4% year-over-year in Q3 2025[7] - Broiler layer flock decreased 2.3% year-over-year in Q3 2025[12] - Total chicken inventories ended Q3 up 4.3% year-over-year[21]

Antitrust & Regulation - Turkey's antitrust board imposed fines totaling 37 亿 liras (approximately $89 million) on poultry producers [1] - The fines were levied because the poultry producers exchanged information that harmed competition [1]

Core Insights - A Chinese delegation is set to visit Rio Grande do Sul, Brazil, which experienced a bird flu outbreak in May, indicating potential for Brazil to resume poultry exports to China, its largest market [1] Industry Summary - The visit of the Chinese delegation raises optimism for the Brazilian poultry industry, which has been affected by the bird flu situation [1] - Resuming poultry exports to China could significantly benefit Brazil's agricultural sector, enhancing trade relations and economic recovery [1]

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]