Pilgrim’s net income rebounds in first quarter

Pilgrim’s reported a decline in net income for the first quarter of fiscal year 2016 when compared to the same quarter of 2015, but an increase when compared to its most recent quarter.

The poultry company with operations in the U.S. and Mexico reported a net income of $118.4 million for the first quarter, down about 42 percent from the $204.2 million reported in the first quarter of FY 2015, but nearly double the $63.1 million posted in the fourth quarter of FY 2015.

Pilgrim’s net sales for the quarter were reported at $1.96 billion, down about 4.3 percent from the $2.05 billion for the same period one year ago, but nearly identical to those of the most recent quarter.

"Our U.S. and Mexican businesses improved sequentially in Q1 following a challenging Q4, putting us in a strong position for Q2. While market conditions contributed to the improvement, our well-balanced portfolio played a key factor in delivering the improved Q1 performance since we were able to leverage the strength in specific market segments while minimizing the impact of the others," Bill Lovette, CEO of Pilgrim's, stated in a press release.

"In Mexico, we continue to see improvements in market conditions year to date, and we are on target in integrating the new assets and realizing announced synergies. We will continue to seek new opportunities to position us to be a much stronger player in all geographies, meet future demand growth in the region, and give us the best portfolio to serve the Mexican consumers."