Pilgrim's Corporation reported a net income of $42.9 million in the third quarter of 2012, a significant improvement over the company's net loss of $162.5 million in the same quarter of 2011, according to the company's latest financial report.
Net debt was reduced to $1.1 billion during the period, reflecting a year-to-date net debt reduction of $317.1 million. "Our execution of the strategy implemented during the past 18 months has provided for vast improvement in our results, even in an uncertain and volatile environment," said Bill Lovette, Pilgrim's CEO. "Notwithstanding a year-over-year increase of $109 million in feed costs, the positive change in our net income for the first three quarters of 2012 is a swing of $672 million compared to 2011, owing to cost and yield improvements, pricing strategy changes, enhanced sales mix and a reduction of $24.6 million in SG&A (selling, general and administrative expenses) costs.
"Even with rapidly increasing input costs impacting our live inventories, we demonstrated effective management of working capital that resulted in positive cash flows," said Lovette. "This, together with our successful rights offering and focus on managing our core business, delivered a year-to-date reduction in net debt of $317.1 million, and culminated in a solid liquidity position of $671.5 million, with our lowest net debt position in over five years."