In its latest earnings report, Pilgrim’s Pride Corp. revealed a decrease in operating income and net income for the third quarter of fiscal 2023, accompanied by a 2.4% drop in net sales, despite operational successes in certain divisions.
The second-largest poultry producer in the nation reported operating income of $206.4 million for the period ending Sept. 24, marking a 39.2% decrease from the $339.2 million reported during the same period the previous year. Overall sales for the quarter slipped 2.4%, amounting to $4.4 billion compared to the $4.5 billion recorded in the third quarter of fiscal 2022.
Although Pilgrim’s Pride faced challenges, company officials highlighted that the global and diversified portfolio contributed to improved margins across all regions of operation. This improvement was attributed to operational programs, strong partnerships with customers of case-ready products, and notable performance in the small bird operation.
The quarterly report emphasized positive developments in Pilgrim’s prepared foods division, as well as business operations in the United Kingdom and Europe, where profitability experienced growth. The live operations in Mexico also showed improvement, building on previous growth, while the company’s commitment to branded growth remained robust.
Pilgrim’s CEO Fabio Sandri, discussing the Q3 results with industry analysts in a conference call, acknowledged the uneven market conditions and persistent consumer inflation. Despite these challenges, Sandri noted that the company’s focus on diversification and profitability led to improvements relative to the previous quarter across all regions.
As Pilgrim’s Pride navigates market dynamics, the quarterly report reflects both the hurdles faced and the strategic initiatives contributing to sustained growth in key areas of the business.
