Pilgrim’s saw a substantial increase in net income for the second quarter of fiscal year 2017.
The company achieved a net income of $233.6 million, compared to a net income of $152.9 million during the second quarter of fiscal year 2016.
Other highlights the company reported for the quarter included:
- An operating income of $359.4 million, an increase of 51.9 percent
- Net sales of $2.25 billion, an 11 percent increase
- Operating Income margins of 14.8 percent in the U.S. and 22.1 percent in Mexico operations, respectively.
- Adjusted EBITDA of $420.6 million, an 18.7 percent margin
- Cash flow from operations of $254.7 million.
- With Pilgrim’s announced capital projects already completed, the company’s quarterly performance reflected its well-balanced portfolio strategy, designed to capture the upside from strong markets while reducing overall volatility.
- Integration of newly acquired assets in Mexico have been completed with margins at the same level as legacy business.
- GNP integration is on track and synergy capture is currently above expectations.
“Our Q2 results materially improved from last quarter as well as from a year ago driven by much stronger results at our U.S. operations while Mexico continued to perform very well. Demonstrating the diversity of our portfolio of bird sizes; while small bird and tray-pack remained robust during the period, our team captured the strength in the large bird deboning environment, which significantly rebounded after a slower than expected start earlier in the year, driven by stronger exports and very good domestic demand as the grilling season kicked off. This portfolio approach is working well and is what fundamentally differentiates us from the competition, giving us the potential to reduce volatility and generate higher margins over time. This summer has brought strong demand for grilling season and we see continuation of chicken as a choice protein in domestic and international markets,” stated Bill Lovette, president and CEO, Pilgrim's.
“We continue to search for solutions in delivering more differentiated customized products that are innovative to satisfy our key customers’ needs. We currently have market leading positions in USDA-certified organic and (no antibiotics ever), two segments that resonate very well with new consumer trends for more natural products while adding more value to our portfolio. We also have the potential to expand into new segments with our broad channel approach using the Gold’n Plump brand as well as the new premium Just BARE chicken in the “better for you” category.”