Pilgrim’s reported a net income of $190.4 million during the second quarter of fiscal year 2014, a small drop from the second quarter of fiscal year 2013, when the poultry company reported a net income of $190.7 million. Earnings per share for the quarter were 73 cents, a one-cent drop from the same period in 2013.
The company did experience a small increase in net sales for the quarter, rising from $2.18 billion to $2.19 billion year-over-year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter was at $338.6 million, up from the $264.6 million reported in the second quarter of 2013.
"Our efforts this quarter have been directed squarely towards the goals we defined in our strategy," stated Bill Lovette, CEO of Pilgrim's. "We outlined four distinct growth opportunities, and each undertaking we've pursued has been consistent with those opportunities. We have directed our capital spending towards leveraging our existing assets and growing our value added exports, sought out accretive acquisitions, and have expanded our presence in the Mexican chicken market. Between the improvements in our operations, the Veracruz project and our recently announced acquisition in Mexico, we believe we are delivering on our commitment to improve shareholder value."
Pilgrim’s on July 28 announced that it was purchasing Tyson Foods’ Mexican operation, known as Tyson de Mexico, for a price of $400 million. The transaction is expected to close before the end of 2014. Earlier in 2014, the company announced plans to build a poultry plant in Veracruz, Mexico.
Lovette also stressed that the company’s dedication to efficient operation has proven effective.
"The margin strength we've demonstrated has been generated by capturing improvements in cost and sales mix, all rooted in operational excellence,” he said. This year we have found significant savings through our zero based budgeting process, and even now are identifying even more areas where we can drive efficiencies. Our team members are driven to be the best in class and produce results that will result in long term, profitable growth."