Pilgrim's Pride Sees Sales and Profits Rise01 November 2013
US - Poultry meat processor, Pilgrim's Pride Corporation, has reported net sales of $2.14 billion in the third quarter of the year - $74 million more than the same period of last year, with a margin of 10.4 per cent.
Pilgrim's Pride reports Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $222.5 million increased 116 per cent compared to the $103 million generated in the prior year.
Net income of $160.9 million reflected an improvement of 275 per cent compared to the $42.9 million reported in the same period in 2012, with diluted earnings per share reaching $0.62 compared to $0.17 in the third quarter of 2012.
Bill Lovette, Pilgrim's Chief Executive Officer, commented: "We are pleased to see continued improvement reflected in our results based on the consistent execution of our strategy. Our engagement with key customers continues to reflect the value they expect from Pilgrim's and is driving growth and success for our customers.
"We've also seen improvements in our margins as a result of the processes we've transformed through our commitment to operational excellence. We are close to achieving our operational improvement targets for the year and envision capturing even greater efficiencies in 2014. Our export model has enabled us to attain our goal of achieving 30 per cent growth in value-added products year-to-date.
"While we saw some volatility in the Mexican market this quarter, we believe the fundamentals of the business and growth opportunities remain intact. Market prices in the region softened during the quarter; however, we continue to view Mexico as a tremendous opportunity for profitability and growth.
"Cash flows from operations were $285.8 million for the quarter, enabling us to reduce our debt by $252 million. Our ending net debt position was $582.1 million, which is 0.87 times our trailing 12-months' EBITDA. This stronger capital structure is reflective of our effective operational execution and cash management strategy."
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