Pilgrim's: first-quarter growth amidst global challenges

Pilgrim’s Pride Corporation’s first-quarter financial results reflect economic growth despite a volatile global market.

(Courtesy Pilgrim's Pride)
(Courtesy Pilgrim's Pride)

Pilgrim’s Pride Corporation’s first-quarter financial results reflect economic growth despite a volatile global market. 

During a call with the media on April 28, Pilgrim’s President and CEO Fabio Sandri, along with other Pilgrim’s executives, discussed the unique challenges 2022 has brought to the market. 

One of the biggest challenges is inflation which is caused primarily by commodities, labor and ingredient costs, according to Sandri. Inflation could constrain global supply growth by less than 1% according to the U.S. Department of Agriculture. 

International challenges

The two main threats to market stability are war in Europe and highly pathogenic avian influenza (HPAI). 

Ukraine’s grain and oil seed market is unpredictable as it is unknown whether crops will be planted and harvested this year. The global corn and wheat markets are also facing disruption due to sanctions on Russian exports, partly because Russia is one of the leading producers of fertilizer in the world. 

Brazil’s soybean production has not reached its projected amount — 125 million metric tons as opposed to the predicted 145 million. 

U.S. production could be in jeopardy due to unfavorable weather patterns. The forecast predicts cold and wet conditions which could delay or decrease planting and harvest. 

While HPAI has negatively impacted the market, both regionally and globally, Pilgrim’s has seen an increase in exports as it has filled the gap caused by HPAI in Europe and Southeast Asia as well as African swine fever in Southeast Asia. 

Growth

Pilgrim’s had a net revenue of $4.24 billion — a 30% increase over the same quarter last year. The adjusted earnings before interest, taxes, depreciation and amortization were $501.8 million which is almost double the earnings of first quarter 2021.

U.S GAAP earnings per share was $1.15 versus $0.41 last year – an increase of over 180%.

Pilgrim’s has also increased its hourly wages by 20% since 2020. 

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