Q2 2024 Pilgrims Pride Corp Earnings Call Transcript
Key Points
- Pilgrims Pride Corp (PPC) reported net revenues of $4.6 billion for Q2 2024, a 5.8% increase over the same quarter last year.
- Adjusted EBITDA was $656 million, up 164% versus Q2 of 2023, with an adjusted EBITDA margin of 14.4% compared to 5.8% last year.
- The company's US case-ready business continued to grow through key customer partnerships, promotional activities, and innovation.
- In Europe, the profitability journey continues to move forward with optimized mix and enhanced manufacturing network.
- Mexico's results improved significantly due to balanced market supply and demand, favorable input costs, and strong execution of strategies.
- The company recorded a $71 million charge in the quarter associated with a settlement related to previously disclosed growers litigation.
- Despite improvements, the European business incurred approximately $36.7 million of restructuring charges during the quarter.
- The industry continues to face challenges with hatchability and mortality issues, impacting overall production efficiency.
- Export volumes have decreased almost double digits as domestic demand continues to grow, replacing exported cuts.
- The company anticipates increased advertising and marketing costs in the second half of the year, which may impact overall SG&A expenses.
Good morning, and welcome to the Second Quarter of 2024 Pilgrim's Pride Earnings Conference Call and Webcast. (Operator Instructions) At the company's request, this call is being recorded. Please note that the slides referenced during today's call are available for download from the Investors section of the company's website at www.pilgrims.com. After today's presentation, there will be an opportunity to ask questions.
I would now like to turn the conference call over to Andrew Rojeski, Head of Strategy, Investor Relations and Sustainability for Pilgrim's Pride.
Good morning, and thank you for joining us today as we review our operating and financial results for the second quarter ended on June 30, 2024. Yesterday afternoon, we issued a press release providing an overview of our financial performance for the quarter, including a reconciliation of any non-GAAP measures we may discuss. A copy of the release is available on our website
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