Financial Data and Key Metrics Changes - For Q3 2025, the company reported net revenues of $4.8 billion, an increase from $4.58 billion in the previous year, reflecting a year-over-year sales growth of 2.3% in the U.S. and over 5% in Mexico [22][24] - Adjusted EBITDA for Q3 was $633 million with an adjusted EBITDA margin of 13.3%, compared to $660.4 million and a margin of 14.4% in Q3 2024 [22][24] - The effective tax rate for the quarter was 25.6%, with a year-to-date rate of 25% [24] Business Line Data and Key Metrics Changes - The Case Ready and prepared foods segments saw increased volumes, contributing to overall revenue growth [22][24] - In the U.S., adjusted EBITDA for Q3 was $479.1 million, down from $499.4 million a year ago, while adjusted EBITDA margins decreased to 16.9% from 18% [22][24] - In Europe, adjusted EBITDA margins were 7.9% for Q3 compared to 8.6% last year, driven by pricing actions to address lower European hog market prices [22][24] Market Data and Key Metrics Changes - The USDA indicated a 2.7% year-over-year growth in Ready to Cook Production for the U.S., with a forecasted 2% increase in broiler production for 2025 [5][6] - Chicken is the only protein expected to see an increase in availability, while beef, pork, and turkey are projected to decline [7] - Demand for chicken remains strong across retail and foodservice, with notable growth in boneless chicken breasts and thighs due to price competitiveness against beef [8][9] Company Strategy and Development Direction - The company is focused on diversifying its portfolio and enhancing operational efficiencies to mitigate volatility in commodity markets [5][19] - Investments in growth projects are on schedule, including the conversion of a Big Bird facility to case ready and the establishment of a new prepared foods facility [18][26] - The company aims to leverage its strong position in the chicken market, particularly in the retail segment, to drive future growth [15][18] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer behavior is shifting towards chicken due to its affordability amid rising food prices, with expectations of continued demand growth [8][40] - The company anticipates a stable pricing environment moving into Q4, with promotional activities expected to support demand [100][102] - Concerns about inflation and SNAP dollar reductions were acknowledged, but management remains optimistic about the resilience of chicken demand [101][102] Other Important Information - The company has reduced its scope 1 and 2 emissions intensity by 23% since 2019 and improved its global safety index by over 77% [20][21] - The company continues to emphasize cash flows from operating activities and disciplined investment in high-return projects, maintaining a strong balance sheet [25][26] Q&A Session Summary Question: Can you clarify the main drivers of the recent commodity price changes and expectations for Q4? - Management indicated that lower food traffic in foodservice has led to promotions featuring chicken, resulting in a 4% volume growth in foodservice and a 3% growth in retail chicken demand [39][40] Question: What percentage of pricing contracts is exposed to commoditized pricing? - Approximately 25% of the company's portfolio is exposed to commodity markets, with efforts to differentiate offerings even within the Big Bird category [42] Question: How do you view the input cost headwinds and export challenges in the EU UK segment? - Input costs are expected to stabilize as inventory flushes through, while export challenges are being addressed through differentiated offerings and long-term arrangements with key customers [62][67] Question: What is the outlook for the EU UK segment's profitability journey? - The company is focused on organic growth and innovation in Europe, with expectations for chicken production to grow by 20% over the next two years [72][73] Question: How has the portfolio changed in terms of exposure to commodity markets? - The company has reduced its exposure to pure commodity pricing by negotiating fixed prices with key customers, allowing for more stability in pricing [104]

Group 1 - The article does not provide any relevant content regarding company or industry insights [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]

Financial Performance - Pilgrim's Pride reported net income of $994.4 million, or $4.17 per diluted share, with net sales of $14.0 billion for the nine months ended September 28, 2025 [150]. - EBITDA for the nine months ended September 28, 2025, was $1.7 billion, with Adjusted EBITDA at $1.9 billion [150]. - Net sales for the nine months ended September 28, 2025 increased by $473.5 million, or 3.5%, to $13,979.7 million compared to the same period in 2024 [181]. - Gross profit for the nine months ended September 28, 2025 increased by $170.0 million, or 9.7%, from $1.76 billion to $1.93 billion [184]. - Operating income increased by $210.0 million, or 17.5%, to $1.4 billion for the nine months ended September 28, 2025, compared to $1.2 billion in the prior year [188]. - Net income for the nine months ended September 28, 2025, was $995.4 million, with Adjusted EBITDA reaching $1,853.2 million [216]. Sales and Revenue - U.S. net sales increased by $63.2 million, or 2.3%, driven by a sales volume increase of $131.0 million, or 4.7 percentage points, despite a decrease in sales price per pound [167]. - Europe net sales rose by $84.4 million, or 6.4%, due to higher sales prices and a favorable foreign currency translation impact of $83.8 million, or 6.4 percentage points [168]. - Mexico net sales increased by $26.8 million, or 5.3%, attributed to sales volume growth and favorable foreign currency translation [169]. - Net sales for the three months ended September 28, 2025 were $4,759.3 million, an increase of $174.4 million, or 3.8%, compared to the same period in 2024 [171]. Costs and Expenses - Cost of sales increased by $198.9 million, or 5.1%, from $3,901.0 million to $4,099.9 million for the three months ended September 28, 2025 [171]. - SG&A expense increased by $20.2 million, or 14.0%, from $144.8 million to $165.0 million for the three months ended September 28, 2025 [175]. - Net interest expense increased to $29.0 million for the three months ended September 28, 2025, up from $19.5 million in the same period in 2024 [178]. - The cost of sales for U.S. operations increased by $205.9 million, or 3.0%, primarily due to increased sales volume and costs per pound sold [185]. - SG&A expenses totaled $498,233, reflecting a $20,216 increase or 4.2% from the prior year, with U.S. SG&A expenses increasing by 9.8% [188]. Cash Flow and Dividends - Cash provided by operating activities was $1,080.4 million for the nine months ended September 28, 2025, down from $1,640.8 million in the prior year [200]. - The company declared a special dividend of $6.30 per share, totaling approximately $1.5 billion, paid on April 17, 2025 [197]. - Cash used in financing activities was $2,112.5 million for the nine months ended September 28, 2025, significantly higher than $150.5 million in the same period in 2024, mainly due to special cash dividends [211]. Market and Economic Factors - The company anticipates that global market prices will depend on factors such as feed production costs and shifts in trade policy [163]. - A hypothetical 10% increase in feed ingredient prices would increase costs by approximately $77.5 million for the three months ended September 28, 2025 [220]. - A 10% weakening of the Mexican peso would decrease net assets of Mexican subsidiaries by $61.5 million as of September 28, 2025 [226]. - A 10% weakening of the British pound would decrease net assets of European subsidiaries by $89.6 million as of September 28, 2025 [228]. Risks and Challenges - The company acknowledges risks related to fluctuations in commodity prices for feed ingredients, pigs, and chicken, which could impact operations [234]. - Potential outbreaks of avian influenza or other diseases may affect the company's ability to conduct operations and demand for poultry products [235]. - The company faces risks from product contamination leading to liability claims and recalls, which could incur significant costs [235]. - Changes in laws or regulations, particularly regarding climate change and sustainability, may impact the company's operations [235]. - Competitive factors, inflation, and pricing pressures could affect the company's market position and profitability [235]. - The company may encounter challenges in effectively integrating acquisitions and realizing anticipated cost savings [235]. - Disruptions in international markets due to geopolitical events, such as the Russia-Ukraine war, could impact distribution channels [235]. - Cyber-attacks and natural disasters pose risks to the company's information systems and operational continuity [235]. - The company must maintain favorable labor relations and comply with labor laws to avoid operational disruptions [235]. - Uncertainties in litigation and other risk factors may affect the company's business and operational results [235].

Financial Performance - Net sales for Q3 2025 reached $4.8 billion, with a consolidated GAAP operating income margin of 10.4%[2] - GAAP net income was $343.1 million, resulting in a GAAP EPS of $1.44, while adjusted net income was $362.9 million with an adjusted EPS of $1.52[2] - Adjusted EBITDA for the quarter was $633.1 million, representing a margin of 13.3%[2] - Net sales for the three months ended September 28, 2025, were $4,759,342, an increase of 3.8% compared to $4,584,979 for the same period in 2024[17] - Gross profit for the nine months ended September 28, 2025, was $1,929,552, representing a 9.6% increase from $1,759,505 in the prior year[17] - Operating income for the three months ended September 28, 2025, was $492,608, a decrease of 3.1% from $508,354 in the same period of 2024[17] - Net income for the three months ended September 28, 2025, was $343,061,000, compared to $349,990,000 for the same period in 2024, reflecting a decrease of approximately 2.7%[31] - Adjusted EBITDA for the three months ended September 28, 2025, was $633,078,000, down from $660,379,000 in the same period of 2024, indicating a decline of about 4.1%[34] - Net income for the nine months ended September 28, 2025, was $995.413 million, an increase from $851.451 million for the same period in 2024, representing a growth of approximately 16.9%[39] - Adjusted EBITDA for the nine months ended September 28, 2025, was $1,853.225 million, compared to $1,688.210 million for the same period in 2024, reflecting an increase of about 9.8%[39] Sales Growth - U.S. Prepared Foods net sales increased by over 25% compared to the prior year, with Just Bare leading growth in the retail frozen fully cooked category[2] - In Mexico, Prepared Foods sales increased by 9% year-over-year, driven by Key Customer demand in fresh[2] - U.S. net sales for the three months ended September 28, 2025, were $2,836,613,000, an increase of 2.3% from $2,773,391,000 in the same period of 2024[59] - Europe contributed $1,392,495,000 to net sales for the three months ended September 28, 2025, reflecting an increase of 6.4% from $1,308,127,000 in the prior year[59] Investments and Agreements - The company announced new investments exceeding $500 million over the next two years to support growth with Key Customers in Fresh and diversify its portfolio[2] - In Europe, a new 10-year supply agreement was established to support a Key Customer, with Fridge Raiders and Rollover growing faster than category averages[2] Environmental and Safety Initiatives - Pilgrim's Pride reduced its global Scope 1 & 2 emissions intensity by 23% since 2019 and improved its Global Safety Index by 77%[2] Financial Position and Liquidity - The company maintained a strong liquidity position with net leverage approximately 1.0 times of Adjusted EBITDA after $2 billion in special dividends during the year[2] - Total assets as of September 28, 2025, were $9.95 billion, with total liabilities at $6.40 billion[15] Operating Expenses and Other Financial Metrics - Interest expense for the three months ended September 28, 2025, was $28,990,000, compared to $19,498,000 in the same period of 2024, reflecting an increase of about 48.7%[31] - Income tax expense for the three months ended September 28, 2025, was $118,319,000, down from $131,609,000 in the same period of 2024, indicating a decrease of approximately 10.1%[31] - Depreciation and amortization for the three months ended September 28, 2025, was $116,426,000, compared to $110,470,000 in the same period of 2024, reflecting an increase of about 5.4%[31] - Payments for dividends amounted to $1,994,347 for the nine months ended September 28, 2025, with no payments in the prior year[19] Litigation and Restructuring - The company reported litigation settlements of $19,582,000 for the three months ended September 28, 2025, compared to no settlements in the same period of 2024[52] - Restructuring activities losses for the three months ended September 28, 2025, were $1,779,000, down from $30,836,000 in the same period of 2024, indicating a significant decrease of approximately 94.2%[34] - Restructuring activities losses in Europe amounted to $21.890 million for the nine months ended September 28, 2025, compared to $82.070 million in the same period of 2024[46]

Core Insights - Pilgrim's Pride reported a decrease in profit despite an increase in sales, indicating a shift in consumer preference towards chicken as a more affordable protein option compared to other sources [1] Company Summary - The latest quarter showed that Pilgrim's Pride experienced higher sales figures, yet the profit margins were lower [1] - The consumer trend of favoring chicken over pricier protein alternatives has been a significant factor influencing the company's financial performance [1] Industry Summary - The poultry industry is witnessing a shift in consumer behavior, with chicken being preferred due to its cost-effectiveness [1] - This trend may impact pricing strategies and profit margins across the protein sector as consumers seek more affordable options [1]

Core Insights - Pilgrim's Pride Corporation reported a net sales increase of 3.8% year-over-year for Q3 2025, reaching $4.76 billion, while net income decreased slightly by 2.0% to $343.1 million [3][6][18] - The company maintained strong performance in the U.S. market, driven by robust chicken demand and strategic investments in key customer relationships [4][5][6] - Adjusted EBITDA for Q3 2025 was $633.1 million, reflecting a 4.1% decrease from the previous year, with an adjusted EBITDA margin of 13.3% [3][6][23] Financial Performance - Net sales for the nine months ended September 28, 2025, were $13.98 billion, up 3.5% from $13.51 billion in the prior year [3] - U.S. GAAP EPS for Q3 2025 was $1.44, down from $1.47 in Q3 2024, while adjusted EPS increased to $1.52 from $1.47 [3][6] - Operating income for Q3 2025 was $492.6 million, a decrease of 3.1% compared to $508.4 million in Q3 2024 [3][6] Market Dynamics - Chicken demand remained strong across retail and foodservice sectors, attributed to its value proposition compared to other proteins [4][5] - The company reported significant growth in its Prepared Foods segment, with net sales increasing over 25% compared to the previous year [6] - Pilgrim's Pride is focusing on diversifying its portfolio and enhancing customer relationships through innovation and quality [5][6] Strategic Initiatives - The company plans to invest over $500 million in the U.S. over the next two years to support growth and diversify its product offerings [6][10] - In Europe, Pilgrim's Pride is reinforcing key customer relationships and driving innovation, with notable growth in brands like Fridge Raiders® and Rollover® [8][9] - Sustainability efforts are a critical component of the company's strategy, with a reported 23% reduction in Scope 1 & 2 emissions intensity since 2019 [10][11] Operational Highlights - The U.S. Fresh segment performed strongly due to a diversified portfolio and operational excellence, while the Prepared Foods segment continues to expand [6][10] - The company reported a consolidated GAAP operating income margin of 10.4% for Q3 2025 [6] - Pilgrim's Pride's liquidity position remains strong, with net leverage approximately 1.0 times adjusted EBITDA [6][10]

Core Insights - Pilgrim's Pride Corporation (PPC) is expected to report a decrease in earnings for Q3 2025, with the Zacks Consensus Estimate dropping from $1.46 to $1.41, indicating a 13.5% decline year-over-year [1][8] Factors Impacting Earnings - The export business of Pilgrim's Pride is facing challenges due to lower broiler volumes, trade restrictions, and weaker international demand, compounded by ongoing tariffs from China [2] - Margin pressures in key markets, particularly in Mexico, are due to foreign exchange volatility and disease impacts, leading to lower profitability compared to the previous year [3] - Input cost risks from grain and soybean meal prices, along with rising marketing, R&D, and labor expenses, are inflating overall costs [3] - Consumer behavior changes linked to inflation are resulting in reduced spending and smaller basket sizes, contributing to a challenging earnings environment [4] Positive Aspects - Despite the challenges, there is resilient consumer demand for chicken as a cost-effective protein, particularly in the U.S. and Europe [5] - The company's branded portfolio, including products like Just Bare, is gaining traction, and its Case Ready and Prepared Foods segments are expanding distribution [5] - Foodservice trends favor PPC, as quick-service restaurants are increasingly offering chicken-based menu items to cater to value-conscious consumers [5] Earnings Prediction Insights - The current model does not predict an earnings beat for Pilgrim's Pride, as it holds a Zacks Rank of 5 (Strong Sell) and an Earnings ESP of 0.00% [6]

Company Performance - Pilgrim's Pride (PPC) stock decreased by 1.39% to $37.61, underperforming the S&P 500's daily gain of 0.58% [1] - The stock has declined by 7.67% over the past month, while the Consumer Staples sector gained 1% and the S&P 500 increased by 0.16% [1] Upcoming Earnings - The earnings report for Pilgrim's Pride is scheduled for October 29, 2025, with an expected EPS of $1.41, reflecting a 13.5% decrease from the same quarter last year [2] Annual Forecast - Zacks Consensus Estimates predict annual earnings of $5.21 per share and revenue of $0 million, indicating a -3.87% change in earnings and no change in revenue compared to the previous year [3] Analyst Estimates - Recent changes in analyst estimates for Pilgrim's Pride suggest a correlation with stock price performance, with positive revisions indicating analyst optimism [4][5] - The Zacks Consensus EPS estimate has decreased by 3.87% in the past month, and Pilgrim's Pride currently holds a Zacks Rank of 5 (Strong Sell) [5] Valuation Metrics - Pilgrim's Pride has a Forward P/E ratio of 7.32, which is lower than the industry average Forward P/E of 11.41 [6] - The Food - Meat Products industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 231, placing it in the bottom 7% of over 250 industries [6][7]

GREELEY, Colo., Oct. 08, 2025 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC) announced today that it will release its third quarter 2025 financial results after the U.S. market closes on Wednesday, October 29. The company’s executives will review the results on a conference call and webcast on Thursday, October 30, 2025, at 7:00 a.m. MT (9:00 a.m. ET). Prepared remarks regarding the company’s financial and operational results will be followed by a question and answer period with the Pilgrim’s ...