US: Pilgrim's FY earnings surge on higher sales, lower margins
Pilgrim's FY earnings up 215%
Pilgrim's Pride has booked a jump in annual net earnings, boosted by lower restructuring costs but also higher sales and improved margins.
In the 12 months to the end of December, the US chicken processor said net income rose to US$573.9m, up from $174m in 2012. Operating profit jumped to $658.8m in 2013, up from $250m in the prior year.
Earnings were helped by lower cost of goods sold, which fell 1.6%. The group also felt a positive impact from lower restructuring charges - which dropped more than one-third.
Sales were also up, rising to $8.4bn from $8.1bn in 2012.
Chief executive Bill Lovette attributed the improved result to the group's strategic plan, launched three years ago, to strengthen customer partnerships, improve operational performance and increase value added exports. Since the strategy was launched, sales have increased a total of 22%, Lovette said.
Pilgrim's Pride Reports EBITDA of $196.5 Million With a Margin of 9.6% for the Fourth Quarter of 2013, and EBITDA of $800.4 Million With a Margin of 9.5% for the Full Year
GREELEY, Colo., Feb. 20, 2014 (GLOBE NEWSWIRE) -- Pilgrim's Pride Corporation (Nasdaq:PPC) reports fourth quarter 2013 financial results with net sales of $2.05 billion for the thirteen week period, as compared to $2.2 billion for the fourteen week period in 2012. Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $196.5 million increased 205% compared to the $64.4 million generated in the prior year. Net income of $143.4 million reflected an improvement of 529% compared to the $22.8 million reported in the same period in 2012, with diluted earnings per share reaching $0.55 compared to $0.09 in the fourth quarter of 2012.
For the full 2013 fiscal year, Pilgrim's achieved $8.4 billion in net sales and $800.4 million of EBITDA, resulting in an EBITDA margin of 9.5%. Pilgrim's recognized $549.6 million in net income for the full year with net income of $2.12 per weighted average share, demonstrating consistently solid performance over the entire year.
"Three years ago our company began executing a strategy to create shareholder value and improve capital structure by partnering with key customers, relentless pursuit of operational excellence and growing our value added exports. During this period, we grew our sales by 22% while increasing our profitability, clearly demonstrating that this strategy is working as evidenced by this year's strong free cash flow generation" stated Bill Lovette, Pilgrim's Chief Executive Officer.
"Our team fully understands that our company is going through a 'Revolution of Rising Expectations' and we continue to drive accountability deeper, setting targets to achieve the highest standards for every aspect of our business. We continually emphasize that being better than average is not good enough as we strive to be the best managed and most respected company in our industry.
Cash flows from operations for our fourth quarter were $281.8 million reaching $878.5 million for the year, adding strength to our balance sheet and providing Pilgrim's with a competitive start to 2014. Our ending net debt position was $307.1 million, which is 0.4 times our trailing twelve months' EBITDA of $800.4 million. This robust capital structure will provide us with the financial strength essential to pursuing the next stages of our growth strategy."
Original source: Pilgrim's Pride
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