NASDAQ$PPC

Pilgrim's Pride · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Pilgrim's Pride's Q2 2021 results reflected strong growth in sales and adjusted EBITDA margins.

Pilgrim's Pride reported a 29% increase in net sales to $3.64 billion compared to the prior year. The company's adjusted EBITDA increased by 231.2% to $371.6 million, representing a 10.2% margin. While the U.S. business saw improved foodservice demand and retail strength, Mexico maintained strong momentum, and the European business showed operational improvements.

  • Net Sales increased by 29% year-over-year, reaching $3.64 billion.
  • Adjusted EBITDA surged by 231.2% year-over-year to $371.6 million, with a margin of 10.2%.
  • U.S. foodservice business improved year-over-year and sequentially, surpassing pre-pandemic levels, while retail volumes remained strong.
  • Mexico sustained its strong performance, driven by solid execution and improved economic conditions.

Headline financials

Total Revenue

$3.64B

Previous: $2.82B+28.8%
EPS (adj)

$0.63

Previous: -$0.02+2674.6%
Adjusted EBITDA

$372M

Previous: $112M+231.2%
Adjusted EBITDA Margin

10.2%

Previous: 4.0%+155.0%
Capital Expenditures

-$184M

Previous: -$148M-24.0%
Free Cash Flow

-$350M

Previous: -$154M-127.2%
Net Income

-$167M

Previous: -$6.04M-2661.5%
Operating Income

-$123M

Previous: $27.3M-551.2%
Gross Profit

$380M

Previous: $120M+217.2%
Cash & Equivalents

$392M

Previous: $507M-22.8%
Total Assets

$7.75B

Previous: $7.16B+8.3%
Stock-Based Comp

$3.13M

Previous: $2.79M+12.0%

Revenue & EPS history

Pilgrim's Pride · Revenue · Quarterly

$3.64B

Q2 2021+28.8%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The company is optimistic about dining out and gathering with friends and family for meals as the world emerges from the COVID-19 pandemic. They are also focused on managing input costs and labor challenges.

Tailwinds

  • Optimistic about dining out and gathering with friends and family for meals as the world emerges from the COVID-19 pandemic
  • Foodservice business was stronger than anticipated as restrictions continued to ease, boosting demand back above 2019 levels
  • Expanded retail branded presence
  • Grew our branded consumer packaged foods business in the second quarter by 215% by investing in our Just Bare® and Pilgrim’s® brands at retail and in e-commerce
  • Mexico business had another strong quarter, driven by a balanced supply/demand equation and continuous improvements in operational performance

Headwinds

  • Higher and more volatile input costs
  • Product mix issues resulting from continued, albeit improving, labor challenges
  • Increasing grain costs
  • Pilgrim’s UK has been affected by low hog prices
  • Rising grain costs affecting Pilgrim's UK

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.0%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.8%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+23.2%

Q3 2012

Best reaction

-14.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.8%+0.5%-9.1%
Q4 2025-3.6%+0.7%-16.1%
Q3 2025-0.1%-2.3%-0.2%
Q1 2025-14.3%-14.5%-9.9%
Q4 2024+3.4%+3.6%-1.4%
Q3 2024+0.7%+6.6%+7.3%
Q2 2024+1.8%+4.5%+12.3%
Q1 2024-0.2%+1.7%-0.2%
Q4 2023+11.6%+11.2%+19.8%
Q3 2023+4.1%+8.2%+11.4%
Q2 2023+1.8%+2.5%+3.2%
Q1 2023+1.1%+2.2%+3.8%
Q4 2022+6.8%+4.0%+0.7%
Q3 2022+3.6%+2.7%+16.2%
Q2 2022-1.3%-6.7%-11.3%
Q1 2022+10.6%+10.5%+26.9%
Q4 2021-3.0%-2.6%-20.3%
Q3 2021-2.6%-1.5%-2.4%
Q2 2021+1.3%-0.3%+26.7%
Q1 2021-1.1%-1.7%-1.8%
Q4 2020-5.5%-5.0%+10.7%
Q3 2020+0.4%+6.8%+19.9%
Q2 2020-4.9%-5.9%+1.7%
Q1 2020+3.2%-5.4%-3.0%
Q4 2019-4.8%-10.6%-30.7%
Q3 2019+3.2%+4.2%+7.1%
Q2 2019+7.3%+5.2%+14.1%
Q1 2019+1.8%+6.8%-5.0%
Q4 2018-6.1%-3.2%+0.9%
Q3 2018+5.6%+7.2%+10.5%
Q2 2018-1.6%+1.2%+3.8%
Q1 2018+2.4%-2.2%-4.5%
Q4 2017+5.4%+3.1%-0.6%
Q3 2017+8.6%+13.1%+22.1%
Q2 2017+4.5%+7.6%+22.1%
Q1 2017-1.9%-2.1%-8.9%
Q4 2016+10.3%+9.9%+15.2%
Q3 2016+0.7%+4.4%-13.1%
Q2 2016-5.7%-7.7%-9.3%
Q1 2016+11.9%
Q4 2015-5.0%
Q3 2015-3.9%
Q2 2015+7.6%
Q1 2015+1.8%
Q4 2014+3.4%
Q3 2014+0.2%
Q2 2014-8.6%
Q1 2014+2.6%
Q4 2013-0.2%
Q3 2013-1.5%
Q2 2013+9.0%
Q1 2013+6.0%
Q4 2012-7.2%
Q3 2012+23.2%
Q4 2011-2.8%
Q2 2012-2.8%
Q1 2011+2.0%
Q1 2012+2.0%
Q4 2009+3.1%
Q1 2010+3.1%
Q3 2011-3.8%
Q3 2010-3.8%
Q4 2010-6.9%
Q2 2010-6.9%
Q2 2011-6.9%

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