Business Pilgrim's gives insight into Q3
Third Quarter Highlights
- Net sales of $2.78 bn.
- Net income of $109.8 mill.
- Operating Income margins of 6.5% in US, 11.5% in Mexico and 4.9% in Europe operations, respectively.
- Adjusted EBITDA of $258.4 mill. (or a 9.3% margin), and Adjusted EPS of $0.45.
- US portfolio generated an improved performance due to their differentiated strategy.
- Q3 in Mexico was in-line with normal seasonality and stronger than last year.
- European operations continuing to mitigate the impact of input cost challenges and already achieved better results than last year.
The company wants to keep committed to their Key Customer strategy, which they identified as the basis for their growth. Revenues from Key Customers have more than doubled over the past eight years. Additionally they want to further differentiate the portfolio, and increase the capacities and capabilities to meet customer expectations.
The purchase of Tulip aligns with their strategic priorities as they want to continue growing their geographical footprint and extending the global reach into attractive new markets. The European operations have continued to make progress in mitigating input cost challenges, and are already generating better results throughout Q3. Despite seasonally cooler weather, improvements in operational efficiencies, and better integration of input costs into customer pricing models drove the improvement in performance. The company expects a continuation of the momentum into Q4.
The firm has recognized the segment of Prepared Foods as a source of growth and would like to strengthen the division. It has continued to increase at a double digit rate and is generating great results under both premium Pilgrim’s and Del Dia brands to drive the evolution of the Mexican portfolio towards more differentiated, higher-value products and margin expansion.