USA, Greeley. Pilgrim’s Pride Corporation reports first quarter 2019 financial results.
The net sales were $2.72 bn and the net income was $84.0 mill. The operating income margins of 6.1% in US, 2.9% in Mexico and 2.5% in Europe operations, respectively. After all the adjusted EBITDA was $204.4 mill. (or a 7.5% margin), and adjusted EPS was $0.35.
There was significant sequential rebound in US operations in comparison to Q4, driven by stronger markets as feature activities tracked much closer to seasonality. The balanced portfolio has continued to evolve, realizing the results of investments made over the past few years to further widen their products and brands, strengthen their key customer relationships, and improve the company’s margin consistency.
Weaker than seasonal markets in Mexico impacted results but conditions are already improving in Q2. Diversification into premium Pilgrim’s brand is gaining momentum and producing strong results, together with significant growth in Prepared Foods.
In-line with the industry, Europe continued to be impacted by a substantial increase in input costs. The company is offsetting the increase through capture of synergies and adjustments in pricing models.