• Net profit of US$108.5m
  • Operating profit of $254.1m
  • Sales climb 1.3%
Pilgrims Pride returned to profit in the first half of the year

Pilgrim's Pride returned to profit in the first half of the year

US chicken manufacturer Pilgrim's Pride returned to profit in the first half of its financial year but has warned of "challenges" ahead.

In the six months ended 26 June, the company made a net profit of US$108.5m compared to a net loss last year of $248.9m as the company continued with its cost-cutting strategy.

The firm also made an operating profit in the period of $254.1m compared to a loss of $99.34m in the prior-year. Sales amounted to $3.86bn, a 1.3% improvement on last year.

However, CEO Bill Lovette said: "There will be challenges for the industry in the second half of 2012, primarily driven by volatility within the feed ingredient markets and tepid consumer spending. At Pilgrim's, we have our focus on what we can control, and we will continue to drive that strategy."

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Pilgrim's Pride Reports Results for Second Quarter of Fiscal 2012
GREELEY, Colo., July 27, 2012 (GLOBE NEWSWIRE) -- Pilgrim's Pride Corporation (NYSE:PPC) reported its second quarter 2012 results with net sales of $2.0 billion and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $125.1 million. The Company recognized net income of $69.4 million during the second quarter of 2012, resulting in net income of $0.27 per diluted share. This compares to a loss of $128.1 million, or an adjusted loss of $0.57 per diluted share in the same quarter of the prior year. Net debt was reduced to $1.18 billion in the period, reflecting a year-to-date reduction in net debt of $248.0 million.

"There will be challenges for the industry in the second half of 2012, primarily driven by volatility within the feed ingredient markets and tepid consumer spending. At Pilgrim's, we have our focus on what we can control, and we will continue to drive that strategy," said Bill Lovette, Chief Executive Officer of Pilgrim's.

"Our efforts are working. While we gained ground versus the competition, we are not at the level we believe we can achieve despite being on target to reach our goal of $200 million in improvements this year. We have the right strategy and the right team in place to execute on it. Industry profits will continue to be influenced by chicken supply discipline, but volatility in feed ingredient costs will have an impact as well."

The Company also simultaneously announced the appointment of Dr. David E. Bell of Boston, Massachusetts to its Board of Directors effective July 25, 2012.

Dr. Bell joins Pilgrim's with expertise in a number of areas, including risk management, marketing and agribusiness. He is currently the George M. Moffett Professor of Agriculture and Business at Harvard Business School. At Harvard Business School he leads the annual Agribusiness executive seminar and has been chairman of the school's marketing faculty and Senior Associate Dean with responsibility for faculty recruiting.

Wesley Batista, Pilgrim's Chairman of the Board, stated, "We are pleased to welcome David to our board. His depth of knowledge in global agriculture and his academic expertise blends well with the other board members, who together will guide our company to be the industry leader."

 

Original source: Pilgrim's Pride