Pilgrim's Pride posts $4.5bn in Q1 sales amid operational shift
Chicken giant reports mixed margins as it invests in growth and efficiency
Pilgrim's Pride has reported net sales of $4.5 billion for the first quarter of 2025, as the company navigated planned operational transitions, weather disruptions, and shifting commodity markets across its US, European, and Mexican businesses, according to a company-issued press release.
In the US, the company's fresh chicken division faced margin pressure compared to the same period last year, driven by planned plant downtime, the impact of winter storms, and weaker commodity cutout values. The company converted its Russellville, Alabama facility to a Case Ready plant to support a key customer, while also rolling out a series of operational upgrades in its Big Bird segment.
Despite the headwinds in fresh, the prepared foods division continued to build momentum. Just Bare retail sales climbed nearly 40% year-on-year, driven by expanded distribution. Construction of a new value-added facility in Walker County, Georgia, remains on track and is expected to further boost margins and sales once complete.
"Once complete, our Walker County facility will enhance margins and further drive sales growth for US Prepared Foods," said president and CEO Fabio Sandri. "It will also increase diversification within our US business given our expansion in brands and valued-added products, ultimately creating more stable earnings."
In Europe, a balanced portfolio across proteins and meal occasions helped the business hold steady despite declining consumer confidence. In Mexico, branded fresh volumes rose more than 10% year-on-year, though margins were squeezed by higher supply levels in the live commodity market.
On sustainability, Pilgrim's announced it has surpassed the Scope 1 & 2 emissions intensity reduction targets tied to its Sustainability-Linked Bond for 2025.
Overall, Sandri was optimistic about the broader market environment. "Chicken demand continued to be healthy across all regions," he said. "Overall business fundamentals remained positive given chicken's affordability, consumer momentum in retail and foodservice, and ample grain supplies."