Net Income Rises Again for Pilgrim's Pride29 October 2012
US - Commenting on the company's results for third quarter of fiscal year 2012, the CEO of Pilgrim's Pride says that net income has increased for the three quarters of the year despite an addition of more than $100 million to total annual feed costs.
Pilgrim's Pride Corporation has reported its third quarter 2012 results with net sales of $2.1 billion and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $103 million. The Company recognised net income of $42.9 million during the third quarter of 2012, resulting in net income of $0.17 per diluted share. This compares to a net loss of $162.5 million, or an adjusted loss of $0.72 per diluted share in the same quarter of the prior year. Net debt was reduced to $1.1 billion in the period, reflecting a year-to-date reduction in net debt of $317.1 million.
Bill Lovette, Pilgrim's Chief Executive Officer explained: "Our execution of the strategy implemented during the past 18 months has provided for vast improvement in our results, even in an uncertain and volatile environment.
"Notwithstanding a year-over-year increase of $109 million in feed costs, the positive change in our net income for the first three quarters of 2012 is a swing of $672 million compared to 2011, owing to cost and yield improvements, pricing strategy changes, enhanced sales mix and a reduction of $24.6 million in SG&A costs.
"Even with rapidly increasing input costs impacting our live inventories, we demonstrated effective management of working capital that resulted in positive cash flows. This, together with our successful rights offering and focus on managing our core business, delivered a year-to-date reduction in net debt of $317.1 million, and culminated in a solid liquidity position of $671.5 million, with our lowest net debt position in over five years," commented Mr Lovette.