The following is a summary of the Pilgrim's Pride Corporation (PPC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Pilgrim's Pride reported Q1 2024 net revenues of $4.4 billion, experiencing a 4.7% increase from the same quarter of the previous year.
The adjusted EBITDA extensively rose by 145% compared to Q1 2023, hitting $372 million.
The adjusted EBITDA margin rose to 8.5% from the previous year's 3.6%.
An upward trend in U.S. pricing for Q2 is expected due to strong retail demand and the upcoming grilling season.
The company anticipates an output of $475 million to $525 million for the ongoing fiscal year, although these projections may rise due to potential opportunities.
Business Progress:
The company is continuing with its focus on customer partnerships, portfolio diversification, value-added offerings development, and operational excellence amidst market volatility and labor issues.
There has been successful progress in the US, Europe, and Mexico business domains due to customer growth, additional retail business acquisition, and strategic execution.
The company has made substantial environmental strides by reducing emissions. They are further planning for future investments in this regard.
The company has started production in the new protein conversion facility in South Georgia and is making headway in Mexican expansion.
The focus for FY 2024 is on investments geared towards safety, product mix optimization, and nurturing relationships with key customers.
Innovative tactics, including special dividends, share repurchases, and bond repurchases, are being considered to create shareholder value using accumulated cash.
The company plans to manage feed conversion and live cost effectively and improve feed performance throughout the year for enhanced profitability.
Strategies that minimize downside risk and maximize upside potential are being carried out in response to market volatility, along with a continued commitment to safety and company values.
More details: Pilgrim's Pride IR
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