Pilgrim’s Pride reports Q2 EPS $1.70, consensus $1.58

Reports Q2 revenue $4.76B, consensus $4.63B. “During the quarter, our portfolio captured market upsides from attractive market fundamentals,” said Fabio Sandri, Pilgrim’s President and CEO. “Equally important, demand from Key Customers outpaced the category, and our business became more diversified as sales of prepared offerings expanded. In the second quarter, the U.S. business grew sales and profitability compared to last year. U.S. Fresh benefited from elevated commodity cutout values and continued operational improvements. Case Ready further cultivated Key Customer partnerships through higher attribute, differentiated offerings; whereas, Small Bird continued to meet strong demand from leading QSRs. Prepared accelerated its presence given extensive marketplace enthusiasm for its branded portfolio, expanded lineup across retail and food service, and introduction of new offerings. The relative availability and affordability of chicken compared to other proteins continues to resonate among consumers. As such, we continued to drive quality, service, and innovation to ensure ample access and relevant offerings needed to meet demand. Europe continued to drive margin expansion through realization of cost efficiencies from manufacturing improvements, enhanced mix, and consolidation of support activities. Key Customer partnerships played a key role as sales grew over 5% compared to last year. Momentum for branded offerings continued, as volumes for Fridge Raiders(R) and Rollover(R) increased faster than the category average. Over the past few years, we’ve made a tremendous amount of progress in creating a more agile, Key Customer focused organization, along with an even more efficient, flexible manufacturing network. I look forward to the next phase of our profitability journey as it emphasizes growth through Key Customer partnerships, branded offerings and innovation.”