Pilgrim's Pride Earnings: Q1 2025 Delivers Strong Growth and Expanding Margins
- Hardik Shah
- May 1
- 3 min read
TLDR
Revenue climbed to $4.5 billion (+2.3% YoY) with notable growth in U.S., Europe, and Mexico segments.
Adjusted EBITDA surged 43% YoY to $533 million with margin expanding to 12%.
Management remains bullish on strategic investments and market opportunities, with disciplined capital allocation.
Business Overview
Pilgrim's Pride Corporation (NASDAQ: PPC) is a leading global protein company specializing in fresh and prepared chicken and other value-added protein products. The company operates processing plants in the U.S., Mexico, the U.K., Ireland, and Europe. It serves major markets through retail, foodservice, and export channels, leveraging strong Key Customer partnerships and growing branded offerings like Just Bare® and Fridge Raiders®.
Pilgrim's Pride Earnings
Pilgrim's Pride posted Q1 2025 net sales of $4.5 billion (+2.3% YoY). Operating income rose sharply to $404 million (+61.6% YoY) and adjusted EBITDA grew to $533 million (+43.4% YoY), achieving a margin of 12% (vs. 8.5% last year). GAAP EPS was $1.24 (+69.9% YoY).
U.S. revenue: $2.74 billion (+6.2% YoY); Adjusted EBITDA: $393 million (14.3% margin).
Europe: $99 million adjusted EBITDA, 8.1% margin (150 bps improvement).
Mexico: $41 million adjusted EBITDA, 8.4% margin, despite FX headwinds.
Operational Performance
Successes:
U.S. Fresh chicken saw strong demand and improved efficiencies, especially in Big Bird and Small Bird segments.
Prepared Foods expanded distribution across retail and foodservice, with sales rising 20% YoY.
Digital sales surged 35%, driven by partnerships with major retailers and online platforms.
Challenges:
Volatility in Mexico from FX and live market pressures.
Higher SG&A costs driven by legal and incentive expenses.
Export disruptions from weather and port strikes impacted volumes but supported pricing.
Market Insights
Consumer Shift: Inflation drove consumers from dining out to retail purchases, boosting demand for chicken.
Chicken Resilience: Relative affordability versus other proteins supported retail and QSR demand.
Europe Recovery: Wages outpaced inflation, fueling brand growth in prepared foods.
Mexico Growth: Despite volatility, demand and branded product penetration are rising.
"Chicken continues to win both in retail and foodservice, gaining traction even as consumers adjust their spending habits." — Fabio Sandri, CEO
Strategic Initiatives
U.S. Capacity Expansion: Converting commodity plants to meet differentiated demand, particularly in case-ready.
Mexico Expansion: Investments in Veracruz and Merida remain on track for 2026 to diversify geographies and increase prepared food capacity.
Innovation Pipeline: Over 80 new products launched in Europe in Q1 to support branded growth.
Sustainability: Reduced Scope 1 and 2 emissions intensity below target thresholds.
"Our investments in capacity, innovation, and partnerships are aligned to capture profitable growth opportunities globally." — Matt Galvanoni, CFO
Capital Allocation
Special Dividend: $1.5 billion paid in April.
Leverage: Net leverage of 1.1x Adjusted EBITDA, below 2x-3x target range.
CapEx: $98 million in Q1; full-year target remains $750 million to support growth projects.
Forward Guidance
Echoing themes from the previous quarter’s outlook, management reaffirmed its commitment to disciplined capital allocation while investing in high-return growth projects — particularly in differentiated offerings and protein conversion capacity.
Management expects demand tailwinds from continued retail strength and easing grain costs, though volatility remains due to FX and export market dynamics. U.S. and Europe growth will be led by branded products and operational efficiencies, while Mexico remains a promising long-term market despite short-term volatility.
"We will remain disciplined while enabling growth, ensuring we spend the right amount on the right priorities." — Matt Galvanoni, CFO
The Bottom Line
Branded and Prepared Foods Drive Momentum: Pilgrim's Pride's diversified portfolio and strong branded offerings, such as Just Bare® and Fridge Raiders®, continue to gain traction, positioning the company to outperform peers in both retail and foodservice.
Disciplined Growth and Capital Allocation: With substantial liquidity and a net leverage ratio of 1.1x even after a $1.5 billion special dividend, the company remains well-capitalized to pursue growth projects while maintaining financial flexibility.
Operational Excellence Mitigates Volatility: Despite macro headwinds in Mexico and export markets, Pilgrim's operational efficiencies, expanded capacity, and close Key Customer partnerships support steady margins and resilience across geographies.
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