USA, Greeley. Pilgrim’s Pride Corporation reports first quarter 2020 financial results.
The net sales were $3.07 bn. Operating income margins reached plus 4.4% in U.S., -7.3% in Mexico and 2.8% in Europe operations, respectively. The adjusted EBITDA of $165.5 mill., or a 5.4% margin.
US continues to improve the relative performance versus the industry across all business units, supported by their business model and agility in changing mix. Mexico was experiencing weak macro conditions persisting longer than expected, partially offset by growth in Prepared Foods. The operating results from legacy European business (Moy Park) are at strong levels with increasing operational efficiencies and input cost mitigation. The newly acquired operations continue to generate positive EBITDA, and remain on track to achieve performance comparable to leading companies with similar portfolio in next few years.
The liquidity position remains strong, supported by emphasis on cash flow generation, focus on working capital management, and disciplined investments in high-return projects, preserving the opportunity to maintain strategic priorities to continue strengthening our differentiated global platforms.
“Despite the volatile and challenging markets in Q1, in part due to Covid-19, our strategy has continued to achieve solid results in relative performance to industry competition, and deliver more resilient performance regardless of changes in specific market conditions. Operating results in Europe significantly improved but were more than offset by difficult market dynamics in the US and Mexico,” stated Jayson Penn, Chief Executive Officer of Pilgrim's.