Pilgrim’s net income down during second quarter of 2016

Pilgrim’s saw its net income decline during the second quarter of fiscal year 2016. The company reported a net income of $153 million, down from the $241.5 million recorded during the same period during fiscal year 2015.

"During Q2, our results further improved sequentially compared to the last two quarters. While our portfolio strategy of a well-balanced exposure to different bird sizes was an important factor, the diversity of our product and broad customer mix, as well as geographic exposure were also important contributors. We structured our portfolio to capture the strong commodity markets while lessening the impact of weaker markets to generate lower volatility and higher margins over the mid to long-term. We are generating the intended results and created a unique and meaningful advantage over competitors with less breadth in their portfolio," stated 

Bill Lovette, CEO of Pilgrim's.

Pilgrim’s reported a net income of $118.4 million during the first quarter and $63.1 million during the fourth quarter of fiscal year 2015.

Net sales dip overall, but increase in Mexico

Pilgrim’s net sales for the second quarter were reported at $2.03 billion, a small drop of about 1.2 percent.

However, the company’s sales in Mexico were up to $350.9 million, compared to the $215 million reported during the same period one year ago.

"Our operations in Mexico were a strong contributor to the Q2 results driven by an improved supply/demand environment, better operating performance, and increased synergies with the newly acquired assets,” said Lovette. “We are continuing to close and have meaningfully narrowed the gap in performance between our legacy and the newly acquired Northern Mexico operations. To further diversify our Mexico operations and grow our value-added segment, we are initiating a strategy to leverage our premium Pilgrim's name while continuing to pursue opportunities through the popular 

Del Dia brand."