A February 8 Pilgrim’s press release reported fourth quarter and year-end 2016 financial results as follows:
Fourth Quarter Results
- Net Sales of $1.91 billion.
- Net Income of $70.6 million, GAAP EPS of $0.28.
- Adjusted EBITDA of $172.2 million (or a 9.0% margin).
- Cash Flow from Operations of $224.4 million.
2016 Highlights for Fiscal Year
- Invested $270 million in capex during 2016 on our operations, including strategic projects on product mix changes to reduce impact of commodity markets, strengthen operational efficiencies as well as tailored customer needs, and improve margin profile.
- Over $200 million shares repurchased and $2.2 billion in special dividends in last two years indicating strong commitment to shareholder value generation and optimal capital structure while preserving growth initiatives.
- Small and case-ready birds continue to deliver strong performance, on favorable market conditions, despite greater availability of other proteins.
- Acquisition of the GNP Company completed; integration and synergy capture well underway.
- Successful launch of premium, Pilgrim’s-branded Value Added Products in Mexico, complementing the existing popular Del Dia range of products, providing improved coverage of all consumer market segments.
“Our fresh business continued to perform well in Q4 driven by our differentiated portfolio strategy of having a well-balanced mix of multiple bird sizes, geographical coverage, and strong relationships with key customers,” Bill Lovette, Pilgrim’s chief executive officer said.
“Robust traffic at grocery retailers is driving strong demand for our products, a strong indication that chicken demand has remained healthy despite greater availability of other proteins. We remain committed to our prepared foods operations and expect growth in 2017, with new capacity additions at Moorefield to begin contributing to volumes starting in Q1,” Lovette said.
“We continue to invest in facility improvements and diversify our portfolio by improving mix and offer more differentiated, innovative products to serve key customer requirement’s, reduce the impact of commodity markets and further raise our margin profile.”
