Business Pilgrim’s Pride ends reports fiscal year 2018
The portfolio strategy and geographic diversification reduced the impact of challenging market conditions, specifically in US commodity chicken. The company remains motivated to pursue additional growth potential and product differentiation in 2019, aligning their strategic priorities to continue providing stronger platforms for the future.
The prepared foods sector grew 15% in the US and 33% in Mexico, and is increasing its momentum, realizing the results of investments made over the past few years to further widen the product and brand portfolio, strengthen key customer relationships, and improve margin consistency.
The company alluded that the Moy Park integration is better than expected; operations and profitability improving with synergies captured despite headwinds from feed costs caused by regional drought.
The results for the fourth quarter included net sales of $2.66 bn, which were down -3.1% versus same quarter last year. The adjusted net income was $21 mill. Adjusted Operating Income margins were 0.3% in US, 5.3% in Mexico and 3.8% in Europe operations, respectively, adjusted for non-recurring items related to weather events, Moy Park acquisition and Exchange Rate and the adjusted EBITDA was $111 mill., or a 4.2% margin.