Pilgrim’s Pride Corporation reported a sharp increase in net income for the second quarter of fiscal year 2024.
The company on July 31 released its financial results for the period ending June 30.
The most recent quarter saw net income rise to $326.5 million, compared to $60.9 million reported for the second quarter of fiscal year 2023. In terms of net sales, this was also a more productive quarter for the company, with sales rising to $4.55 billion, compared to $4.31 billion from a year ago.
“Our global portfolio delivered significant year-over-year profitability growth. We remained disciplined in the execution of our strategies, focusing on what we can control and continuing to expand our relationships with key customers, elevating our performance as market fundamentals became increasingly attractive,” said Fabio Sandri, president and CEO of Pilgrim’s Pride.
U.S. operations
In the U.S., big bird operations realized benefits from enhanced commodity cutout values, further production efficiencies and lower input costs, the company stated. Case ready and small bird delivered above market growth with key customers through differentiated and customized offerings, while the company’s prepared foods increased its marketplace presence through innovation of branded, value-added items across retail and food service.
“Our diversified U.S. portfolio enabled our business to capture market upside as conditions evolved in the commodity market. At the same time, we also worked in partnership with our key customers to cultivate demand through promotional activity and innovation, further creating value for our customers and consumers alike. We also continued to strengthen our quality and service through operational excellence,” said Sandri.
European market
In Europe, consumer sentiment improved as wage growth surpassed inflation. In this environment, the Pilgrim’s team optimized mix with key customers and drove branded offerings. Additionally, the team identified and implemented a plan to optimize the company’s manufacturing network and increase efficiencies.
“Europe’s performance demonstrates the robust nature of our strategies and agility of our team. Our diversified portfolio allowed us to rapidly adjust to consumer preferences and meet key customer needs. These efforts were further amplified by continued operational excellence to improve production efficiencies,” said Sandri.
Pilgrim’s Mexico
Mexico improved given continued balance in supply and demand fundamentals in the commodity market, growth with key customers across retail and foodservice, and increased momentum of branded offerings in both fresh and prepared foods. Investments in operational excellence to enhance biosecurity in live operations and build capacity also remained on schedule.
“Mexico continues to drive growth above market for our key customers and branded offerings. Given our investments to expand production, we have an opportunity to further develop our marketplace presence and diversify our portfolio,” said Sandri.
