Pilgrim's Pride Corporation Q4 FY2025 earnings call

• U.S.: Strong chicken demand, Just BARE retail sales reached $1,000,000,000, operational excellence improved efficiencies, fresh and prepared foods grew.
• Europe: Completed efficiency projects, key customer partnerships strengthened, portfolio diversified.
• Mexico: Sales growth in branded offerings, investments in fresh and prepared, diversification efforts.
• Supply: USDA projections on production, feed inputs, demand trends in retail (more frequent trips, smaller baskets) and foodservice (QSR growth offsetting full-service declines).
• Sustainability: Progress in emission reduction, over 2,300 team members signed up for Better Futures program.

U.S.: Net revenues for fiscal 2025 were $11,000,000,000 vs $10,600,000,000 in 2024. Adjusted EBITDA was $1,630,000,000 with a 14.8% margin. Fresh increased market share, prepared foods grew. Europe: Q4 adjusted EBITDA was $131,400,000 vs $117,100,000 in 2024. Full year adjusted EBITDA was $453,100,000 vs $406,900,000 in 2024, improved profitability due to sales growth and efficiencies. Mexico: Q4 adjusted EBITDA was $9,500,000 vs $36,900,000 in 2024. Full year adjusted EBITDA was $186,700,000 with an 8.8% margin, impacted by imported protein and live market volatility.

• 2026 net interest expense forecast between $115,000,000 and $125,000,000.
• 2026 CapEx forecast between $900,000,000 and $950,000,000.
• Effective tax rate expected to approximate 25% in 2026.
• Growth plans include investments in Mexico (diversifying regions), U.S. prepared foods expansion, and Europe innovation.

• Commodity price volatility affecting margins.
• HPAI outbreak impacting exports.
• Competition from other proteins (e.g., beef prices rising).
• Regional market volatility in Mexico (imports, live market) and Europe (pork supply issues).

Q: About current growing conditions, cutout levels, pricing vs historic and last two years, and supply side for Q1.

A: Breeding flock down 1.9% year over year, hatchability an issue but bird still profitable. USDA projects 1.2% Q1 supply growth and 1% full year growth.

Q: On capital allocation, CapEx pipeline beyond 2026.

A: Plans include converting small bird plant to deboning, diversifying in Mexico regions, and continuing prepared foods expansion with investments in 2027.

Q: On commodity price rally sustainability and seasonally stronger period.

A: Consumer spending concerns drive retail demand, chicken demand up as competing protein prices rise, trends positive for 2026.

Q: Mexico Q4 performance and future outlook.

A: Q4 impacted by export shifts and supply increases, but portfolio diversification and regional growth expected to stabilize.

Q: Beef environment impact on chicken demand and broiler margins.

A: Beef price increases drive chicken demand, strong retail and foodservice demand expected to continue.

Q: EU, UK business performance, seasonality, and sustainability.

A: Seasonality contributes to Q4 strength, long-term chicken demand growth due to affordability and strategies.

Q: Foodservice demand in U.S., QSR vs others.

A: Full-service slowdown offset by non-commercial growth, QSRs using chicken promotions, industry growth expected.

Q: Just BARE brand growth, distribution, velocity.

A: Just BARE has strong velocity, focus on distribution and innovation to continue growth.

Q: Europe trends beyond seasonality.

A: Long-term chicken demand growth, innovation, and partnerships driving volume.

Q: U.S. grandparents' shipping capacity and EU-Brazil chicken trade impact.

A: Grandparents' size per USDA data, EU-Brazil trade impacts foodservice but not retail significantly.

Q: Operating cash flow and working capital trends 2026.

A: No major change expected, inventory and AR monitored, CapEx impact considered.

Q: Mexico $1,300,000,000 investment over 2026-2030.

A: Long-term growth in Mexico regions and prepared foods, aiming to reduce meat imports by 35%.