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][32] - U.S. net revenues increased nearly 6% to $2.82 billion, with adjusted EBITDA of $482.7 million, reflecting strong profitability improvements [33][34] Business Line Data and Key Metrics Changes - The U.S. diversified fresh portfolio benefited from favorable commodity prices and strong customer demand, leading to growth in branded offerings [6][7] - Prepared foods saw significant growth, with net sales increasing by 20% compared to last year, driven by strong performance in the Just Bare brand [18][19] - In Europe, adjusted EBITDA margins improved to 8.2% from 7.4% year-over-year, supported by operational improvements and innovative offerings [33] Market Data and Key Metrics Changes - The USDA indicated a 1.9% increase in ready-to-cook chicken production in the U.S. compared to 2024, with expectations of 1.5% growth in 2025 [7][8] - Retail chicken demand is increasing, with both tenders and wings gaining traction, while food service restaurants are seeing a shift towards value offerings [10][11] - In Mexico, net sales increased in double digits, driven by strong demand in the food service rotisserie channel [23][24] Company Strategy and Development Direction - The company announced a $400 million investment to build a new fully cooked prepared food plant in Georgia, expected to enhance long-term growth trends [25][41] - The focus remains on portfolio diversification, operational excellence, and strengthening key customer relationships through innovative product development [20][23] - The company aims to reduce reliance on outside suppliers and leverage fresh production capabilities to drive growth and enhance margins [28][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains favorable, with strong demand for chicken and improvements in supply visibility [56][57] - The company anticipates continued growth in the prepared foods segment, supported by consumer interest in higher attributed differentiated offerings [27][29] - Management expressed confidence in maintaining profitability despite challenges in the pricing environment for certain products [34][36] Other Important Information - The company declared a special dividend of approximately $500 million, reflecting strong cash flow and a commitment to shareholder value [7][40] - Legal settlement expenses of $58 million were incurred during the quarter, primarily related to ongoing litigation [36] - The effective tax rate for the quarter was 25.1%, with expectations for the full year to approximate 25% [38] Q&A Session Summary Question: Clarification on the $400 million investment in Georgia - Management indicated that the bulk of the investment will occur in 2026, with a range of $50 million to $70 million expected this year [49] Question: Supply and demand dynamics in the chicken market - Management noted that while supply visibility is improving, hatchability issues persist, impacting overall production [54][56] Question: Update on industry production constraints - Management highlighted that the industry is focusing on improving productivity and addressing hatchery bottlenecks to meet demand [62] Question: Profitability outlook in Mexico - Management acknowledged volatility in the Mexican market but emphasized stable year-over-year performance driven by economic growth [107]

Core Insights - Pilgrim's announced a $400 million investment to expand its operations in Georgia, specifically by building a new prepared foods facility in LaFayette, Walker County, which will create over 630 jobs at full capacity [1][3]. Company Expansion - The new facility will focus on producing fully cooked chicken products, supporting the growth of Pilgrim's prepared foods business, including brands like Just Bare, Pilgrim's, and Gold Kist [3]. - Construction is expected to begin in fall 2025, with hiring anticipated to start in 2027, coinciding with the completion of the first phase of the facility [3]. Economic Impact - The investment reflects Pilgrim's commitment to the region and aligns with the company's long-term growth strategy [3]. - Currently, Pilgrim's supports approximately 7,500 jobs across Georgia and operates seven food production facilities, contributing significantly to the local economy [2][6]. - Local officials, including the Mayor of LaFayette and the Chairwoman of Walker County Government, expressed that the new jobs will provide stable employment and long-term security for residents [4][5]. Industry Context - Agriculture remains Georgia's leading industry, with companies like Pilgrim's driving growth and creating quality jobs in local communities [2][5]. - The expansion of Pilgrim's operations is seen as a natural progression that will enhance the local economy and support partnerships with local poultry growers [4].