The Brazilian-owned firm’s income took flight in the second quarter, rising to $233m during the 13 weeks to 25 June 2017.
A strong quarterly performance saw sales hit $2.25bn – a double-digit year-on-year rise fuelled by Pilgrim Pride’s strategy to diversify its portfolio which, as expected, encouraged positive trading figures.
Pilgrim’s Pride results – in brief
Net sales: $2.25bn
Gross profit: $425m
Operating income: $359m
Net income: $233m
Mexico performed ‘very well’
“Our Q2 results materially improved from the last quarter, as well as from a year ago, driven by much stronger results at our US operations, while Mexico continued to perform very well,” said Bill Lovette, CEO of Pilgrim’s Pride.
The business claims to be the world’s second-largest chicken producer and Lovette added the mix of birds processed by Pilgrim’s was working well, as it differentiated the firm from its competitors.
“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.”
Pilgrim’s is now on the hunt for ways to further maximise its diverse range of bird sizes to create new products at a time when it continues to benefit from robust consumer demand for white meat.
Health is one on-trend food area that Lovette said had “potential” for the business. Pilgrim’s recently acquired GNP Company, which boasts an array of antibiotic-free and organic poultry products, to enhance its portfolio of high-quality chicken.