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PILGRIMS PRIDE CORP0000802481false00008024812024-10-302024-10-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 30, 2024
PILGRIM'S PRIDE CORPORATION
(Exact Name of registrant as specified in its charter)
Delaware 1-9273 75-1285071
(State or other jurisdiction of
incorporation or organization)		 (Commission File Number) (IRS Employer Identification No.)
1770 Promontory Circle 80634-9038
Greeley CO (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (970) 506-8000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of Exchange on Which Registered
Common Stock, Par Value $0.01 PPC The Nasdaq Stock Market LLC
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
    Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 Emerging growth company ☐
    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02     Results of Operations and Financial Condition.
On October 30, 2024 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information furnished in Item 2.02 and in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any of Pilgrim's Pride Corporation's filings under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1 Press release dated October 30, 2024.
Exhibit 104 Cover Page Interactive Data File formatted in iXBRL Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


SIGNATURE  
  PILGRIM’S PRIDE CORPORATION
 
Date: October 30, 2024 /s/ Matthew Galvanoni
  Matthew Galvanoni
  Chief Financial Officer and Chief Accounting Officer

EX-99.1 2 a2024_q3ppcex991earningsre.htm EX-99.1 Document

pilgrimslogoa05a01a01a01a03.jpg



Pilgrim’s Pride Reports Third Quarter 2024 Results with $4.6 Billion in Net Sales and Operating Income of $508.4 Million

GREELEY, Colo., October 30, 2024 (GLOBE NEWSWIRE) - Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's largest poultry producers, reports its third quarter 2024 financial results.

Third Quarter Highlights
•Net Sales of $4.6 billion.
•Consolidated GAAP operating income margin of 11.1%.
•GAAP Net Income of $350.0 million and GAAP EPS of $1.47. Adjusted Net Income of $387.0 million or Adjusted EPS of $1.63.
•Adjusted EBITDA of $660.4 million, or a 14.4% margin.
•Our U.S. Fresh portfolio continued to improve through progress in operational excellence, strong demand, and enhanced mix. Overall chicken demand was strong given competitive pricing and value delivered to the consumer, with our Key Customers expanding faster than category averages in the Case Ready and Small Bird segments. The Commodity segment improved given continued progress in production efficiencies and positive market fundamentals.
•Diversification through value-added offerings continues to accelerate. Our branded prepared foods portfolio expanded across retail and foodservice through increased distribution and promotional activity.
•Europe improved Adjusted EBITDA nearly 40% versus prior year given recent network and back office optimization efforts, enhanced mix with Key Customers, and further diversification through branded offerings and innovation. Richmond® and Fridge Raiders® continued to grow faster than category averages and our innovation efforts continue to be recognized by the market with multiple industry awards.
•Mexico results followed normal seasonality, while continuing to cultivate partnerships with Key Customers as sales grew ahead of the market. Diversification efforts continued to progress as branded sales rose over 20%. Operational excellence efforts to expand production and mitigate risk remained on track.
•Stronger liquidity position given healthy cash generation throughout the quarter. Net leverage ratio of 0.65x Adjusted EBITDA, providing the foundation to execute the company’s growth strategy and create value for our shareholders.
•Pilgrim’s continued to demonstrate progress against its ESG aspirations as detailed in the publication of the 2023 Sustainability Report. Since 2019, performance against the Global Safety Index has improved by 69%, and Scope 1 and 2 absolute GHG emissions have been reduced by 17%. Also, since 2021, over 1,500 team members have signed up for tuition-free, higher education programs through our Better Futures initiative.
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(Unaudited) Three Months Ended Nine Months Ended
September 29,
2024		 September 24,
2023		 Y/Y Change September 29,
2024		 September 24,
2023		 Y/Y Change
(In millions, except per share and percentages)
Net sales $ 4,585.0  $ 4,360.2  +5.2  % $ 13,506.2  $ 12,833.9  +5.2  %
U.S. GAAP EPS $ 1.47  $ 0.51  +188.2  % $ 3.58  $ 0.79  +353.2  %
Operating income $ 508.4  $ 206.4  +146.3  % $ 1,199.4  $ 338.0  +254.9  %
Adjusted EBITDA(1)
 $ 660.4  $ 324.0  +103.8  % $ 1,688.2  $ 724.7  +133.0  %
Adjusted EBITDA margin(1)
 14.4  % 7.4  % +7.0  pts 12.5  % 5.6  % +6.9  pts
(1)     Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.
“Throughout the quarter, we continued to emphasize operational excellence, diversify our portfolio and cultivate partnerships with Key Customers to drive value for the consumer. Our unrelenting focus on quality, service and innovation is reflected in our performance,” said Fabio Sandri, Pilgrim’s President and Chief Executive Officer.
In the U.S., the relative affordability and availability of chicken drove increased demand across retail and food service. Case Ready and Small Bird drove profitable growth as demand improved from Key Customers and there was continued progress in operational excellence. In Big Bird, profitability grew from sustained improvements in production efficiencies, lower input costs, and enhanced commodity cutout values. Similarly, Prepared continued to diversify the portfolio through incremental distribution across retail and foodservice.
“We partnered closely with our Key Customers to further cultivate consumer demand. As such, our approach accommodated changing input costs, enabling further investment in promotional activity, generating store traffic and driving growth well above the category. These efforts were amplified by attractive market fundamentals, especially in the Big Bird segment,” Sandri said.
Europe realized its highest quarterly adjusted EBITDA to date given continued progress in operational excellence, further diversification through branded offerings and strengthening Key Customer partnerships. New product introductions continue to gain momentum as the business launched over 280 new products during the quarter.
“Our new product pipeline has generated significant marketplace interest. We received multiple industry awards during the quarter for innovation, quality and functionality for our recently launched items. Given these efforts, we can further scale partnerships with Key Customers, enhance mix through branded offerings, and grow our prepared portfolio,” said Sandri.
Mexico continued to build its presence with Key Customers across retail and foodservice and further diversify its portfolio through brands. Investments in operational excellence to build capacity and drive operational efficiencies remained on track.
“Mexico continued to successfully drive all pillars of our strategies during typical seasonality for the business. As a result, we are increasingly well positioned to capture both short- and long-term growth opportunities,” remarked Sandri.
Pilgrim’s provided an update on its progress to become an industry leader in sustainability through the publication of its 2023 Sustainability Report. The report included an update on a variety of topics, including the company’s exceptional safety performance, product integrity standards, and GHG emissions reductions.
“Sustainability is critical to achieve our vision of becoming the best and most respected company in our industry and creating a better future for our team members and their families,” said Sandri.
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, Oct. 31, at 7 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
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To pre-register, go to: https://dpregister.com/sreg/10193583/fdb3c986c1

You may also reach the pre-registration link by logging in through the investor section of our website at
https://ir.pilgrims.com in the “Events & Presentations” section.

For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.”

Replays of the conference call will be available on Pilgrim’s website approximately two hours after the call concludes and can be accessed through the “Investor” section of www.pilgrims.com.
About Pilgrim’s Pride
Pilgrim’s employs approximately 62,000 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, the Republic of Ireland and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. Without limiting the foregoing, words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date hereof, and the Company undertakes no obligation to update any such statement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

3

Contact: Andrew Rojeski
Head of Strategy, Investor Relations, & Sustainability
IRPPC@pilgrims.com
www.pilgrims.com

4

PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 29, 2024 December 31, 2023
  (In thousands)
Cash and cash equivalents $ 1,877,981  $ 697,748 
Restricted cash and restricted cash equivalents 6,431  33,475 
Investment in available-for-sale securities 10,099  — 
Trade accounts and other receivables, less allowance for credit losses 1,067,650  1,129,178 
Accounts receivable from related parties 1,964  1,778 
Inventories 1,780,925  1,985,399 
Income taxes receivable 63,418  161,062 
Assets held for sale 5,640  — 
Prepaid expenses and other current assets 241,365  195,831 
Total current assets 5,055,473  4,204,471 
Deferred tax assets 30,317  4,890 
Operating lease assets, net 267,812  266,707 
Other long-lived assets 59,110  35,646 
Intangible assets, net 862,400  853,983 
Goodwill 1,312,806  1,286,261 
Property, plant and equipment, net 3,112,616  3,158,403 
Total assets $ 10,700,534  $ 9,810,361 
Accounts payable $ 1,391,270  $ 1,410,576 
Accounts payable to related parties 19,404  41,254 
Revenue contract liabilities 85,129  84,958 
Accrued expenses and other current liabilities 1,001,263  926,727 
Income taxes payable 89,815  31,678 
Current maturities of long-term debt 546  674 
Total current liabilities 2,587,427  2,495,867 
Noncurrent operating lease liabilities, less current maturities 206,796  203,348 
Long-term debt, less current maturities 3,184,080  3,340,841 
Deferred tax liabilities 472,183  385,548 
Other long-term liabilities 31,382  40,180 
Total liabilities 6,481,868  6,465,784 
Common stock 2,623  2,620 
Treasury stock (544,687) (544,687)
Additional paid-in capital 1,988,591  1,978,849 
Retained earnings 2,921,657  2,071,073 
Accumulated other comprehensive loss (163,590) (176,483)
Total Pilgrim’s Pride Corporation stockholders’ equity 4,204,594  3,331,372 
Noncontrolling interest 14,072  13,205 
Total stockholders’ equity 4,218,666  3,344,577 
Total liabilities and stockholders’ equity $ 10,700,534  $ 9,810,361 

5

PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
  Three Months Ended Nine Months Ended
  September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
  (In thousands, except per share data)
Net sales $ 4,584,979  $ 4,360,196  $ 13,506,227  $ 12,833,915 
Cost of sales 3,901,009  4,014,314  11,746,722  12,036,561 
Gross profit 683,970  345,882  1,759,505  797,354 
Selling, general and administrative expense 144,780  138,569  478,017  420,683 
Restructuring activities 30,836  940  82,070  38,684 
Operating income 508,354  206,373  1,199,418  337,987 
Interest expense, net of capitalized interest 41,597  45,645  114,041  135,459 
Interest income (22,099) (12,115) (48,308) (23,343)
Foreign currency transaction losses (gains) (678) 8,924  (7,240) 43,462 
Miscellaneous, net 7,935  (2,201) 5,153  (26,185)
Income before income taxes 481,599  166,120  1,135,772  208,594 
Income tax expense 131,609  44,553  284,321  20,488 
Net income 349,990  121,567  851,451  188,106 
Less: Net income attributable to noncontrolling interests 130  289  867  1,185 
Net income attributable to Pilgrim’s Pride Corporation $ 349,860  $ 121,278  $ 850,584  $ 186,921 
Weighted average shares of Pilgrim's Pride Corporation common stock outstanding:
Basic 237,123  236,787  236,953  236,702 
Effect of dilutive common stock equivalents 768  560  733  542 
Diluted 237,891  237,347  237,686  237,244 
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:
Basic $ 1.48  $ 0.51  $ 3.59  $ 0.79 
Diluted $ 1.47  $ 0.51  $ 3.58  $ 0.79 

6

PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
  Nine Months Ended
  September 29, 2024 September 24, 2023
  (In thousands)
Cash flows from operating activities:
Net income $ 851,451  $ 188,106 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization 321,768  307,414 
Deferred income tax expense (benefit) 45,220  (46,808)
Asset impairment 26,633  4,011 
Gain on early extinguishment of debt recognized as a component of interest expense (11,211) — 
Stock-based compensation 9,205  5,236 
Loan cost amortization 3,798  6,059 
Accretion of discount related to Senior Notes 1,898  1,581 
Loss (gain) on property disposals 1,104  (8,416)
Loss (gain) on equity-method investments (6) 330 
Changes in operating assets and liabilities:
Trade accounts and other receivables 62,646  (65,183)
Inventories 172,990  (12,957)
Prepaid expenses and other current assets (65,555) (8,039)
Accounts payable, accrued expenses and other current liabilities 79,672  12,224 
Income taxes 151,902  40,463 
Long-term pension and other postretirement obligations 13,135  (1,700)
Other operating assets and liabilities (23,858) (22,723)
Cash provided by operating activities 1,640,792  399,598 
Cash flows from investing activities:
Acquisitions of property, plant and equipment (316,949) (432,339)
Proceeds from property disposals 9,724  17,188 
Proceeds from insurance recoveries —  20,681 
Cash used in investing activities (307,225) (394,470)
Cash flows from financing activities:
Payments on revolving line of credit, long-term borrowings and finance lease obligations (151,671) (765,899)
Proceeds from revolving line of credit and long-term borrowings —  1,278,032 
Proceeds from contribution (distribution) of capital under Tax Sharing Agreement between JBS USA Holdings and Pilgrim’s Pride Corporation 1,425  (1,592)
Payments on early extinguishment of debt (200) — 
Payments of capitalized loan costs (16) (10,275)
Cash provided by (used in) financing activities (150,462) 500,266 
Effect of exchange rate changes on cash and cash equivalents (29,916) (1,036)
Increase in cash, cash equivalents and restricted cash 1,153,189  504,358 
Cash, cash equivalents and restricted cash, beginning of period 731,223  434,759 
Cash, cash equivalents and restricted cash, end of period $ 1,884,412  $ 939,117 
7

PILGRIM’S PRIDE CORPORATION
Non-GAAP Financial Measures Reconciliation
(Unaudited)

“EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses (gains), (2) costs related to litigation settlements, (3) restructuring activities losses, (4) loss on settlement of pension obligations due to plan termination, (5) write-downs of inventory as a result of hurricane, (6) property insurance recoveries for property damage losses, and (7) net income attributable to noncontrolling interests. EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measures differently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In thousands)
Net income $ 349,990  $ 121,567  $ 851,451  $ 188,106 
Add:
Interest expense, net(a)
 19,498  33,530  65,733  112,116 
Income tax expense 131,609  44,553  284,321  20,488 
Depreciation and amortization 110,470  104,300  321,768  307,414 
EBITDA 611,567  303,950  1,523,273  628,124 
Add:
Foreign currency transaction losses (gains)(b)
 (678) 8,924  (7,240) 43,462 
Litigation settlements(c)
 —  10,500  72,190  34,700 
Restructuring activities losses(d)
 30,836  940  82,070  38,684 
Loss on settlement of pension from plan termination(e)
 10,709  —  10,709  — 
Inventory write-down as a result of hurricane(f)
 8,075  —  8,075  — 
Minus:
Property insurance recoveries(g)
 —  —  —  19,086 
Net income attributable to noncontrolling interest 130  289  867  1,185 
Adjusted EBITDA $ 660,379  $ 324,025  $ 1,688,210  $ 724,699 
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(a)Interest expense, net, consists of interest expense less interest income.
(b)Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.
(e)This represents a loss recognized on the settlement of pension plan obligations related to an ongoing plan termination of our two U.S. defined benefit plans. We expect the termination to be substantially complete by the end of the year.
(f)This primarily represents broiler losses incurred as a result of Hurricane Helene in late September 2024.
(g)This represents property insurance recoveries primarily for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.
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The summary unaudited consolidated income statement data for the twelve months ended September 29, 2024 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine months ended September 24, 2023 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 31, 2023 and (2) the applicable unaudited consolidated income statement data for the nine months ended September 29, 2024.
PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
(Unaudited)
Three Months Ended LTM Ended
December 31,
2023		 March 31,
2024		 June 30,
2024		 September 29,
2024		 September 29,
2024
(In thousands)
Net income $ 134,211  $ 174,938  $ 326,523  $ 349,990  $ 985,662 
Add:
Interest expense, net 54,505  30,897  15,338  19,498  120,238 
Income tax expense 22,417  52,062  100,650  131,609  306,738 
Depreciation and amortization 112,486  103,350  107,948  110,470  434,254 
EBITDA 323,619  361,247  550,459  611,567  1,846,892 
Add:
Foreign currency transaction losses (gains) (22,892) (4,337) (2,225) (678) (30,132)
Litigation settlements 4,700  940  71,250  —  76,890 
Restructuring activities losses 5,661  14,559  36,675  30,836  87,731 
Loss on settlement of pension from plan termination —  —  —  10,709  10,709 
Inventory write-down as a result of hurricane —  —  —  8,075  8,075 
Minus:
Property insurance recoveries 2,038  —  —  —  2,038 
Net income (loss) attributable to noncontrolling interest (442) 517  220  130  425 
Adjusted EBITDA $ 309,492  $ 371,892  $ 655,939  $ 660,379  $ 1,997,702 

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EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe it is frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited)
Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In thousands)
Net income $ 349,990  $ 121,567  $ 851,451  $ 188,106  7.63  % 2.79  % 6.30  % 1.47  %
Add:
Interest expense, net 19,498  33,530  65,733  112,116  0.43  % 0.77  % 0.49  % 0.87  %
Income tax expense 131,609  44,553  284,321  20,488  2.87  % 1.02  % 2.11  % 0.16  %
Depreciation and amortization 110,470  104,300  321,768  307,414  2.40  % 2.39  % 2.38  % 2.39  %
EBITDA 611,567  303,950  1,523,273  628,124  13.33  % 6.97  % 11.28  % 4.89  %
Add:
Foreign currency transaction losses (gains) (678) 8,924  (7,240) 43,462  (0.01) % 0.20  % (0.05) % 0.33  %
Litigation settlements —  10,500  72,190  34,700  —  % 0.24  % 0.53  % 0.27  %
Restructuring activities losses 30,836  940  82,070  38,684  0.67  % 0.02  % 0.61  % 0.30  %
Loss on settlement of pension from plan termination 10,709  —  10,709  —  0.23  % —  % 0.08  % —  %
Inventory write-down as a result of hurricane 8,075  —  8,075  —  0.18  % —  % 0.06  % —  %
Minus:
Property insurance recoveries —  —  —  19,086  —  % —  % —  % 0.15  %
Net income attributable to noncontrolling interest 130  289  867  1,185  —  % 0.01  % 0.01  % 0.01  %
Adjusted EBITDA $ 660,379  $ 324,025  $ 1,688,210  $ 724,699  14.40  % 7.42  % 12.50  % 5.63  %
Net sales $ 4,584,979  $ 4,360,196  $ 13,506,227  $ 12,833,915  $ 4,584,979  $ 4,360,196  $ 13,506,227  $ 12,833,915 

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Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Three Months Ended Three Months Ended
September 29, 2024 September 24, 2023
U.S. Europe Mexico Total U.S. Europe Mexico Total
(In thousands) (In thousands)
Net income $ 278,241  $ 36,209  $ 35,540  $ 349,990  $ 31,124  $ 35,743  $ 54,700  $ 121,567 
Add:
Interest expense, net(a)
 30,734  (4,195) (7,041) 19,498  42,331  (649) (8,152) 33,530 
Income tax expense 101,478  14,038  16,093  131,609  20,953  5,550  18,050  44,553 
Depreciation and amortization 70,121  34,959  5,390  110,470  63,052  35,927  5,321  104,300 
EBITDA 480,574  81,011  49,982  611,567  157,460  76,571  69,919  303,950 
Add:
Foreign currency transaction losses (gains)(b)
 (1) 202  (879) (678) 6,168  2,933  (177) 8,924 
Litigation settlements(c)
 —  —  —  —  10,500  —  —  10,500 
Restructuring activities losses(d)
 —  30,836  —  30,836  —  940  —  940 
Loss on settlement of pension from plan termination(e)
 10,709  —  —  10,709  —  —  —  — 
Inventory write-down as a result of hurricane(f)
 8,075  —  —  8,075  —  —  —  — 
Minus:
Net income attributable to noncontrolling interest —  —  130  130  —  —  289  289 
Adjusted EBITDA $ 499,357  $ 112,049  $ 48,973  $ 660,379  $ 174,128  $ 80,444  $ 69,453  $ 324,025 
(a)Interest expense, net, consists of interest expense less interest income.
(b)Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.
(e)This represents a loss recognized on the settlement of pension plan obligations related to an ongoing plan termination of our two U.S. defined benefit plans. We expect the termination to be substantially complete by the end of the year.
(f)This primarily represents broiler losses incurred as a result of Hurricane Helene in late September 2024.

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PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Nine Months Ended Nine Months Ended
September 29, 2024 September 24, 2023
U.S. Europe Mexico Total U.S. Europe Mexico Total
(In thousands) (In thousands)
Net income (loss) $ 579,948  $ 102,232  $ 169,271  $ 851,451  $ (43,801) $ 68,485  $ 163,422  $ 188,106 
Add:
Interest expense, net(a)
 100,266  (8,734) (25,799) 65,733  127,234  (1,470) (13,648) 112,116 
Income tax expense (benefit) 215,655  9,383  59,283  284,321  (9,895) 4,743  25,640  20,488 
Depreciation and amortization 200,006  104,852  16,910  321,768  187,048  103,483  16,883  307,414 
EBITDA 1,095,875  207,733  219,665  1,523,273  260,586  175,241  192,297  628,124 
Add:
Foreign currency transaction losses (gains)(b)
 —  (53) (7,187) (7,240) 55,027  835  (12,400) 43,462 
Litigation settlements(c)
 72,190  —  —  72,190  34,700  —  —  34,700 
Restructuring activities losses(d)
 —  82,070  —  82,070  —  38,684  —  38,684 
Loss on settlement of pension from plan termination(e)
 10,709  —  —  10,709  —  —  —  — 
Inventory write-down as a result of hurricane(f)
 8,075  —  —  8,075  —  —  —  — 
Minus:
Property insurance recoveries(g)
 —  —  —  —  19,086  —  —  19,086 
Net income attributable to noncontrolling interest —  —  867  867  —  —  1,185  1,185 
Adjusted EBITDA $ 1,186,849  $ 289,750  $ 211,611  $ 1,688,210  $ 331,227  $ 214,760  $ 178,712  $ 724,699 
(a)Interest expense, net, consists of interest expense less interest income.
(b)Prior to April 1, 2024, the Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.
(e)This represents a loss recognized on the settlement of pension plan obligations related to an ongoing plan termination of our two U.S. defined benefit plans. We expect the termination to be substantially complete by the end of the year.
(f)This primarily represents broiler losses incurred as a result of Hurricane Helene in late September 2024.
(g)This represents property insurance recoveries primarily for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.
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Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Operating Income
(Unaudited)
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In thousands)
GAAP operating income, U.S. operations $ 419,844  $ 101,382  $ 907,249  $ 110,541 
Litigation settlements —  10,500  72,190  34,700 
Inventory write-down as a result of hurricane 8,075  —  8,075  — 
Adjusted operating income, U.S. operations $ 427,919  $ 111,882  $ 987,514  $ 145,241 
Adjusted operating income margin, U.S. operations 15.4  % 4.5  % 12.3  % 2.0  %
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In thousands)
GAAP operating income, Europe operations $ 45,601  $ 42,809  $ 100,710  $ 70,583 
Restructuring activities losses 30,836  940  82,070  38,684 
Adjusted operating income, Europe operations $ 76,437  $ 43,749  $ 182,780  $ 109,267 
Adjusted operating income margin, Europe operations 5.8  % 3.3  % 4.7  % 2.8  %
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In thousands)
GAAP operating income, Mexico operations $ 42,909  $ 62,182  $ 191,459  $ 157,076 
No adjustments —  —  —  — 
Adjusted operating income, Mexico operations $ 42,909  $ 62,182  $ 191,459  $ 157,076 
Adjusted operating income margin, Mexico operations 8.5  % 11.1  % 11.9  % 9.8  %
14

Adjusted Operating Income Margin for each of our reportable segments is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income margin for each of our reportable segments to adjusted operating income margin for each of our reportable segments is as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin
(Unaudited)
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In percent)
GAAP operating income margin, U.S. operations 15.1  % 4.1  % 11.3  % 1.5  %
Litigation settlements —  % 0.4  % 0.9  % 0.5  %
Inventory write-down as a result of hurricane 0.3  % —  % 0.1  % —  %
Adjusted operating income margin, U.S. operations 15.4  % 4.5  % 12.3  % 2.0  %
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In percent)
GAAP operating income margin, Europe operations 3.5  % 3.3  % 2.6  % 1.8  %
Restructuring activities losses 2.3  % —  % 2.1  % 1.0  %
Adjusted operating income margin, Europe operations 5.8  % 3.3  % 4.7  % 2.8  %
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In percent)
GAAP operating income margin, Mexico operations 8.5  % 11.1  % 11.9  % 9.8  %
No adjustments —  % —  % —  % —  %
Adjusted operating income margin, Mexico operations 8.5  % 11.1  % 11.9  % 9.8  %
15

Adjusted net income attributable to Pilgrim's Pride Corporation (“Pilgrim's”) is calculated by adding to Net income attributable to Pilgrim's certain items of expense and deducting from Net income attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’s Pride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performance under U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP. Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income (loss) attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Net Income
(Unaudited)
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In thousands, except per share data)
Net income attributable to Pilgrim's $ 349,860  $ 121,278  $ 850,584  $ 186,921 
Add:
Foreign currency transaction losses (gains) (678) 8,924  (7,240) 43,462 
Litigation settlements —  10,500  72,190  34,700 
Restructuring activities losses 30,836  940  82,070  38,684 
Loss on settlement of pension from plan termination 10,709  —  10,709  — 
Inventory write-down as a result of hurricane 8,075  —  8,075  — 
Minus:
Gain on early extinguishment of debt (52) —  11,159  — 
Property insurance recoveries —  —  —  19,086 
Adjusted net income attributable to Pilgrim's before tax impact of adjustments 398,854  141,642  1,005,229  284,681 
Net tax impact of adjustments(a)
 (11,857) (4,927) (37,423) (23,657)
Adjusted net income attributable to Pilgrim's $ 386,997  $ 136,715  $ 967,806  $ 261,024 
Weighted average diluted shares of common stock outstanding 237,891  237,347  237,686  237,244 
Adjusted net income attributable to Pilgrim's per common diluted share $ 1.63  $ 0.58  $ 4.07  $ 1.10 
(a)    Net tax expense (benefit) of adjustments represents the tax impact of all adjustments shown above.
16

Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In thousands, except per share data)
GAAP EPS $ 1.47  $ 0.51  $ 3.58  $ 0.79 
Add:
Foreign currency transaction losses (gains) —  0.04  (0.03) 0.18 
Litigation settlements —  0.04  0.30  0.15 
Restructuring activities losses 0.13  —  0.35  0.16 
Loss on settlement of pension from plan termination 0.05  —  0.05  — 
Inventory write-down as a result of hurricane 0.03  —  0.03  — 
Minus:
Gain on early extinguishment of debt —  —  0.05  — 
Property insurance recoveries —  —  —  0.08 
Adjusted EPS before tax impact of adjustments 1.68  0.59  4.23  1.20 
Net tax impact of adjustments(a)
 (0.05) (0.01) (0.16) (0.10)
Adjusted EPS $ 1.63  $ 0.58  $ 4.07  $ 1.10 
Weighted average diluted shares of common stock outstanding 237,891  237,347  237,686  237,244 
(a)    Net tax impact of adjustments represents the tax impact of all adjustments shown above.
17

PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
(Unaudited)
Three Months Ended Nine Months Ended
September 29, 2024 September 24, 2023 September 29, 2024 September 24, 2023
(In thousands)
Sources of net sales by geographic region of origin:
U.S. $ 2,773,391  $ 2,488,317  $ 8,016,688  $ 7,367,093 
Europe 1,308,127  1,312,205  3,877,571  3,862,219 
Mexico 503,461  559,674  1,611,968  1,604,603 
Total net sales $ 4,584,979  $ 4,360,196  $ 13,506,227  $ 12,833,915 
Sources of cost of sales by geographic region of origin:
U.S. $ 2,280,425  $ 2,317,661  $ 6,834,091  $ 7,044,003 
Europe 1,176,286  1,216,258  3,539,695  3,595,051 
Mexico 444,298  480,395  1,372,936  1,397,294 
Elimination —  —  —  213 
Total cost of sales $ 3,901,009  $ 4,014,314  $ 11,746,722  $ 12,036,561 
Sources of gross profit by geographic region of origin:
U.S. $ 492,966  $ 170,656  $ 1,182,597  $ 323,090 
Europe 131,841  95,947  337,876  267,168 
Mexico 59,163  79,279  239,032  207,309 
Elimination —  —  —  (213)
Total gross profit $ 683,970  $ 345,882  $ 1,759,505  $ 797,354 
Sources of operating income by geographic region of origin:
U.S. $ 419,844  $ 101,382  $ 907,249  $ 110,541 
Europe 45,601  42,809  100,710  70,583 
Mexico 42,909  62,182  191,459  157,076 
Elimination —  —  —  (213)
Total operating income $ 508,354  $ 206,373  $ 1,199,418  $ 337,987 


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