Pilgrim’s sees double-digit net income improvements in 2014, Q4
Net income for company improves 29 percent in FY 2014 and 17 percent in fourth quarter
Pilgrim's reported a net income improvement of 17 percent for the fourth quarter of fiscal year 2014, achieving a net income of $167.2 million. For the year, Pilgrim’s achieved a net income of $711.7 million, a 29 percent improvement when compared to fiscal year 2013.
The net income figures reflect a $48 million adjustment due to the early retirement of the 2018 notes and a non-cash foreign exchange loss due to the peso devaluation.
The Colorado-based poultry company released its quarterly financial results on February 11.
Pilgrim’s net sales for the fourth quarter amounted to $2.11 billion, compared to $2.05 billion in net sales during the same quarter of 2013. However, the fourth quarter of 2014 was a 13-week period, while the fourth quarter of 2013 was a 14-week period.
"Though pleased with our results for 2014 and our team members deserve full credit, we will not be complacent. We continue driving ownership and accountability deeper in our company, and we are developing new tools and methods to improve our efficiency, sales mix, and margin," stated Bill Lovette, CEO of Pilgrim's.
"Given our strong cash flow generation, earlier last month we announced a special dividend payment of $5.77 per share, which is a sign of confidence in the future, as well as proof of a promise we made to generate shareholder value while optimizing the company's capital structure."
Lovette also offered an optimistic view as he looks ahead to the rest of fiscal year 2015.
"We see 2015 as yet another opportunity for our team to create shareholder value through serving our key customers, relentless pursuit of operational excellence, and growing value added exports. As we begin the year, demand for chicken continues to be strong, outpacing supply, and with the improvements we've implemented, Pilgrim's is ideally situated to reap the benefits," said Lovette.