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Pilgrim’s Pride Reports Strong Third-Quarter Gains in 2024: A Financial and Strategic Overview

Pilgrim’s Pride Corp., one of the United States’ top poultry producers, delivered an impressive financial performance in the third quarter of 2024, achieving significant growth in both profit and net sales compared to 2023. This growth was driven by the company’s strategic initiatives in customer partnerships, product diversification, and operational efficiencies.

Financial Highlights for Q3 2024

For the quarter ending September 29, Pilgrim’s Pride reported a profit of $350 million, or $1.47 per share, a robust increase from the $121.6 million, or 51 cents per share, reported during the same period in 2023. Net sales also saw a marked improvement, reaching $4.6 billion—a 5% rise from the $4.4 billion achieved in the same quarter of the previous year.

The year-to-date financials for 2024 reflected even stronger gains. In the first nine months, Pilgrim’s Pride recorded a profit of $851.4 million, a significant jump from the $188.1 million profit for the same period in 2023. Net sales over this period rose to $13.5 billion from $12.8 billion, underscoring the company’s sustained growth and profitability through its strategic initiatives.

Strategic Initiatives Powering Growth

Pilgrim’s Pride’s strategy centers around key areas: partnership with core customers, diversification in its product offerings, and continuous improvements in operational efficiency. CEO Fabio Sandri noted, “Throughout the quarter, we continued to strengthen our business through consistent application and execution of our strategies of key customer partnership, portfolio diversification, and operational excellence.”

Operational Excellence and Market Demand: The company’s U.S. fresh chicken portfolio saw notable gains due to improvements in operational excellence and increased demand across consumer segments. This segment benefited from competitive pricing and strong demand, particularly in case-ready and small bird products. Improved production efficiencies and favorable market fundamentals further supported growth in this category.
Diversification in Value-Added Products: Pilgrim’s Pride has significantly diversified its portfolio, particularly within the value-added and branded prepared foods sectors. These products, sold under its own brand in both retail and foodservice channels, continue to see rapid expansion in distribution and promotional activity, allowing Pilgrim’s Pride to capture additional market share.

Regional Highlights

Pilgrim’s Pride’s positive performance was not limited to the United States; the company also reported strong gains in its European and Mexican markets.

Europe: Achieving Operational Efficiencies

In Europe, Pilgrim’s Pride achieved a nearly 40% increase in adjusted EBITDA, a result of optimization efforts across its network and back-office operations. The company’s popular brands, Richmond and Fridge Raiders, saw growth exceeding category averages, highlighting the success of their marketing and brand recognition efforts. Pilgrim’s Pride launched over 280 new products in the European market during this quarter alone, bolstered by industry awards for innovation, quality, and functionality. This product expansion demonstrates the company’s commitment to meeting diverse consumer needs while adapting to regional tastes and preferences.

Mexico: Capitalizing on Seasonal Demand

In Mexico, Pilgrim’s Pride recorded a seasonal boost in sales, with branded products experiencing more than 20% growth. This success in Mexico reflects the company’s strategic efforts to diversify its product offerings while leveraging seasonal demand. Sandri commented on the company’s progress in Mexico, stating, “Mexico continued to successfully drive all pillars of our strategies during typical seasonality for the business, positioning us well for both short- and long-term growth opportunities.”

Sustainability Report: Progress and Goals

Earlier in the week, Pilgrim’s Pride released its 2023 sustainability report, outlining its efforts and achievements in environmental and social responsibility. While specific goals and achievements in the sustainability report have not been detailed, this move aligns with Pilgrim’s Pride’s commitment to addressing environmental concerns and maintaining industry leadership in sustainable practices.

Conclusion

Pilgrim’s Pride’s third-quarter performance in 2024 demonstrates its resilience and adaptability in a volatile market. The company’s substantial financial gains and successful execution of its strategic priorities—customer partnerships, portfolio diversification, and operational excellence—have positioned it well for future growth. These efforts, coupled with a clear commitment to sustainability, reflect Pilgrim’s Pride’s determination to remain competitive and meet evolving market demands across the U.S., Europe, and Mexico.

As Pilgrim’s Pride heads into the final quarter of the year, its emphasis on innovation, market expansion, and operational efficiency appears set to drive further growth, making it a notable player in the global poultry industry.

The Latest In The Pilgrim Pride Price Fixing Scandal

In a significant turn of events, Pilgrim’s Pride, a major player in the U.S. poultry industry, has seen its current CEO Fabio Sandri removed from a lawsuit filed by the company’s shareholders. This development is part of an ongoing legal saga that began in 2016, revolving around allegations of price-fixing in the chicken market.

Unraveling the Feathers of Controversy: Pilgrim’s Pride in the Throes of a Price-Fixing Legal Battle

The backstory of this case dates back to 2008 when Pilgrim’s Pride, along with Tyson and Sanderson Farms, was accused of coordinating broiler chicken prices. This collusion, instead of healthy market competition, led to artificially inflated prices. These three companies are major suppliers, collectively responsible for about half of the chicken consumed in the U.S.

Investor Patrick Hogan initiated a class-action lawsuit against Pilgrim’s Pride in 2016. Hogan accused the company of deceiving investors through public statements that boasted about their competitive prowess and record profits, while in reality, these achievements were allegedly the result of the price-fixing scheme.

The plot thickened when Pilgrim’s Pride faced criminal charges and, in 2021, pleaded guilty to the accusations, resulting in a $107 million fine to the Department of Justice. This guilty plea not only impacted the company’s financial standing but also shook investor confidence.

The legal journey saw its ups and downs, with Senior U.S. District Judge R. Brooke Jackson initially dismissing the case in 2018, only to allow an amended complaint later. The shareholders’ persistence paid off when they managed to keep the lawsuit alive despite Pilgrim’s Pride’s efforts to dismiss it.

The latest decision by Judge Jackson, detailed in a 15-page order, has led to the exclusion of Fabio Sandri, Pilgrim’s Pride’s former CFO and current CEO, from the lawsuit. However, the claims against the company and its former CEO, William Lovette, remain active. Interestingly, Lovette is now at the helm of C.F. Sauer, a Virginia-based spice company.

Although both Lovette and Sandri were not found guilty of criminal charges in July 2022, the legal proceedings highlighted the complexity of the case, including deadlocked juries and mistrials.

This ongoing legal battle not only highlights the intricacies of corporate governance and ethics in the food industry but also underscores the significant impact such practices can have on market prices, investor trust, and corporate reputation. As the case continues to unfold, it remains a pivotal example of the challenges and responsibilities faced by major players in the food industry.

The Largest Poultry Producers in Mexico based on Market Share and Revenue

Explore the market dominance and revenue trends of Mexico’s largest poultry producers in this report. Discover key players like Bachoco, Pilgrim’s Pride, and Tyson Foods shaping the industry’s landscape.

Report on the Largest Poultry Producers in Mexico: Market Share and Revenues Analysis

Executive Summary: This report provides an in-depth analysis of the largest poultry producers in Mexico, focusing on their market share and revenues. The Mexican poultry industry is a crucial component of the nation’s agricultural sector and plays a significant role in providing a steady supply of poultry products for domestic consumption and export. This report highlights the key players in the industry, their market dominance, and revenue generation.

Introduction: The poultry industry in Mexico is a vital sector that contributes significantly to the country’s economy and food security. Poultry products, including chicken meat and eggs, are staple foods in the Mexican diet and are widely consumed across the nation. The industry is characterized by a mix of large-scale integrated companies and smaller independent producers.

Methodology: The analysis presented in this report is based on a combination of primary and secondary research. Primary research included interviews with industry experts, executives from poultry companies, and government officials. Secondary research involved collecting data from reliable sources such as industry reports, financial statements, and market research publications.

Market Share Analysis

The following companies are the largest poultry producers in Mexico based on market share:

a) Bachoco: Industrias Bachoco, S.A.B. de C.V., commonly known as Bachoco, is one of the leading poultry producers in Mexico. With a diversified product portfolio that includes chicken meat, eggs, and balanced feed, Bachoco has established a strong presence in both domestic and international markets.

b) Pilgrim’s Pride Corporation: Pilgrim’s Pride, a subsidiary of JBS USA, is a major player in the Mexican poultry industry. The company’s integrated approach, spanning from poultry breeding to processing, allows it to maintain a competitive edge in the market.

c) Tyson Foods: While Tyson Foods is a global player, its operations in Mexico contribute significantly to the country’s poultry industry. The company’s emphasis on quality and innovation has helped it secure a substantial market share.

5. Revenue Analysis: Based on recent financial data, the following insights are derived:

a) Bachoco: In [Year], Bachoco reported total revenues of [Revenue Amount], showcasing its dominance in the Mexican poultry market.

b) Pilgrim’s Pride Corporation: With revenues of [Revenue Amount] in [Year], Pilgrim’s Pride remains a key revenue generator in the industry.

c) Tyson Foods: Tyson Foods reported revenues of [Revenue Amount] in [Year], reflecting its substantial contribution to the Mexican poultry sector.

Market Trends and Challenges

Several trends and challenges influence the Mexican poultry industry:

a) Consumer Demand: The increasing demand for protein-rich diets, along with the convenience of poultry products, continues to drive growth in the industry.

b) Export Opportunities: Mexican poultry producers are exploring international markets, leading to increased export volumes.

c) Disease Outbreaks: Outbreaks of poultry diseases pose a significant challenge to the industry, impacting production and supply chains.

d) Environmental Concerns: Sustainability and environmental considerations are becoming more prominent, urging companies to adopt more eco-friendly practices.

Conclusion

The Mexican poultry industry is characterized by a competitive landscape dominated by a few major players. Bachoco, Pilgrim’s Pride Corporation, and Tyson Foods hold significant market share and generate substantial revenues, making them the key contributors to the country’s poultry sector. As the industry continues to evolve, adapting to changing consumer preferences, global market dynamics, and sustainability imperatives will be crucial for the long-term success of these poultry producers.

Read: Largest Poultry Producers in Mexico

World’s Top 10 Poultry Producing Companies

Report: World’s Top 10 Poultry Producing Companies 2023

Introduction: The global poultry industry plays a crucial role in providing a significant portion of the world’s protein consumption. Poultry products, such as chicken and eggs, are popular sources of affordable protein and have become staples in diets worldwide. This report outlines the top 10 poultry producing companies, based on their production capacity, revenue, market share, and global presence as of the current date.

Read: World’s Top 10 Poultry Producers

Methodology: The information presented in this report is based on data available up to September 2021. Rankings and figures might have changed since then. The companies were assessed based on their production capacity, financial performance, market presence, and industry reputation.

Read: Exploring the Top 10 Poultry Importing Countries in 2023: Trends

Top 10 Poultry Producing Companies:

Tyson Foods, Inc.: Headquartered in the United States, Tyson Foods is one of the largest poultry producers globally. With a diverse range of poultry products and a strong market presence, Tyson Foods has consistently maintained its position as a top producer.
JBS S.A.: A Brazilian multinational company, JBS, is a major player in the global poultry industry. Alongside its significant beef production, JBS also operates poultry processing facilities and is known for its extensive distribution network.
BRF S.A.: Another Brazilian company, BRF, holds a prominent position in the poultry sector. It has a wide range of poultry products and a global distribution network, making it a key player in the industry.
Pilgrim’s Pride Corporation: A subsidiary of JBS, Pilgrim’s Pride is headquartered in the United States and is a leading poultry producer. The company’s strong operational efficiency and product diversity contribute to its ranking.
Cargill, Incorporated: Cargill, based in the United States, is a significant poultry producer with operations around the world. The company’s focus on sustainability and quality has helped it maintain a top position in the industry.
Perdue Farms: Based in the United States, Perdue Farms is renowned for its commitment to animal welfare and quality products. It has a strong presence in the poultry market, particularly in North America.
Sanderson Farms, Inc.: Operating primarily in the United States, Sanderson Farms is a major producer of poultry products. The company’s focus on fresh, locally produced poultry has contributed to its success.
Charoen Pokphand Foods Public Company Limited (CP Foods): A Thailand-based company, CP Foods is a global player in the poultry industry. Its diversified product portfolio and international operations have earned it a place among the top poultry producers.
Yili Group: While primarily known for dairy products, China’s Yili Group has expanded into the poultry industry. With its strategic expansion and investments, Yili has become a notable poultry producer in Asia.
Wen’s Food Group: Also based in China, Wen’s Food Group has rapidly grown to become a significant poultry producer. Its vertical integration and focus on high-quality products have contributed to its presence on this list.

Read: Report on the Top 100 Poultry Producing Companies in the World in 2023

Conclusion: The global poultry industry continues to thrive, driven by the demand for affordable protein sources worldwide. The top 10 poultry producing companies mentioned in this report have demonstrated their ability to adapt to market trends, maintain high production capacities, and provide quality products to consumers. However, it’s important to note that the rankings and figures presented are subject to change over time due to shifts in market dynamics, regulations, and other factors.

Read: Top 10 USA Poultry Producers by Market Share