Pilgrim’s Pride Q4'24 Earnings: Strong Execution & Market Tailwinds Fuel Growth
- Hardik Shah
- Feb 13
- 3 min read
Updated: Feb 16
TLDR
Revenue & Profitability Surge: Pilgrim’s Pride reported Q4 revenue of $4.4 billion, with adjusted EBITDA climbing 69.9% YoY to $525.7 million.
Operational Excellence Drives Gains: U.S. fresh and prepared foods segments capitalized on strong chicken demand and cost efficiencies.
Strategic Investments & Future Growth: Expansion in Mexico and Europe, coupled with sustainability initiatives, position Pilgrim’s for long-term growth.
Financial Results
Pilgrim’s Pride Corporation (NASDAQ: PPC) is one of the world's leading food companies, specializing in fresh and prepared poultry products. The company operates in the U.S., Mexico, and Europe, supplying retail, foodservice, and quick-service restaurant (QSR) channels. Pilgrim’s leverages a diversified product portfolio across bird sizes and differentiated offerings to optimize performance amid changing market conditions.
Fourth Quarter 2024 Highlights
Revenue: $4.4 billion (-3.5% YoY)
Operating Income: $306.7 million (+66.4% YoY)
GAAP Net Income: $235.9 million (+75.7% YoY)
Adjusted EBITDA: $525.7 million (+69.9% YoY), 12.0% margin
EPS: GAAP EPS of $0.99 (+73.7% YoY), Adjusted EPS of $1.35
Full-Year 2024 Performance
Revenue: $17.9 billion (+3.0% YoY)
Adjusted EBITDA: $2.2 billion (+114.1% YoY), 12.4% margin
Net Income: $1.1 billion (+236% YoY)
Pilgrim’s improved profitability significantly due to lower input costs, strong chicken demand, and operational efficiencies across all regions.
Operational Performance
U.S. Segment
The U.S. division saw adjusted EBITDA margins reach 14.2%, driven by:
Strong seasonal demand for Big Bird, Case Ready, and Small Bird categories.
Improved commodity pricing and production efficiencies.
A 25% YoY growth in branded offerings under Just Bare® and Pilgrim’s®.
Expansion in digitally influenced sales (+30%), reflecting strong e-commerce traction.
CEO Fabio Sandri: “Our performance is a reflection of our diversified portfolio, our ability to work with key customers to unlock consumer value through differentiated offerings, and our continued emphasis on quality and service.”
Europe Segment
Europe delivered 9.3% EBITDA margins, benefiting from:
Manufacturing footprint optimization and back-office integration.
Strong growth in foodservice and branded categories (Fridge Raiders® and Rollover®).
Innovation partnerships with key customers, leading to multiple industry awards.
Sandri on Europe’s progress: “We launched new and innovative products that are growing ahead of the categories and helping our key customers to differentiate in the marketplace.”
Mexico Segment
Mexico’s EBITDA margin reached 7.4% in Q4, fueled by:
Higher commodity prices driving counter-seasonal strength.
Fresh branded products growing nearly 10% YoY.
Expansion of production at the Merida complex to meet rising demand.
Sandri on Mexico’s potential: “We are continuing to invest in capacity expansion and operational excellence to further cultivate profitable growth with key customers.”
Market Insights
Strong chicken demand persists in both retail and foodservice due to its affordability relative to beef and pork.
QSR and frozen poultry sales remain robust as consumers seek value-oriented meal solutions.
Export demand stabilizing, despite bird flu concerns in some U.S. regions.
Grain cost volatility: Lower soybean meal prices offset rising corn costs, reducing overall feed expenses.
Strategic Initiatives
Expansion in Mexico: Increasing capacity in Merida and Port of Anie to enhance fresh and prepared food production.
Sustainability Focus: Partnering with GreenGasUSA to convert methane into renewable natural gas.
Digital & E-commerce Growth: Strengthening online retail distribution to capitalize on rising demand for branded, value-added poultry.
Forward Guidance
Revenue Growth: Anticipating stable demand across all regions, with strong Q1 pricing trends in the U.S..
CapEx Plans: Targeting $450M-$500M in investments, with a focus on operational enhancements and customer partnerships.
Financial Outlook: Effective tax rate expected at ~25%; leverage remains low at 0.5x adjusted EBITDA.
The Bottom Line
Pilgrim’s Pride delivered a strong Q4 and FY 2024, benefiting from operational efficiencies, favorable market conditions, and a diversified product portfolio. With continued investments in Mexico, sustainability, and branded expansion, the company remains well-positioned for profitable growth in 2025.
Stay ahead with the latest insights on the consumer staples sector—
Comments