Pilgrim’s Pride has booked a jump in second-quarter net profit thanks to an improved product mix and efficiency gains.
The company, in which Brazilian meat giant JBS holds a majority stake, said net earnings rose to US$190.7m in the quarter, up from $69.4m in the comparable period of last year. EBITDA also more than doubled, climbing to $264.6m compared to $125.1m in the second quarter of 2012. Sales rose to $2.2bn, up from $2bn, the group added. The results led to higher first-half sales and profits.
CEO Bill Lovette said the quarter continues to “validate our strategy”. Gains were driven by an improved product mix, thanks to “significant” new business in “strategic channels”, plant cost and efficiency gains and a “more favourable” export performance, he continued.
Pilgrim’s Pride also revealed that it has secured a new credit facility that will result in lower financing costs. More effective working capital management has allowed the group to bring its net debt to EBITDA ratio down to 1.5x, Lovette added.