Pilgrim's Pride Reports $1.1 Billion Net Income and $17.9 Billion in Sales for Fiscal Year 2024

Pilgrim's Pride Corporation reported a net income of $1.1 billion, or $4.57 per diluted share, for the fiscal year ending December 29, 2024, marking a significant increase from the previous year's net income of $322.3 million. The company's total net sales rose to $17.9 billion, a 3.0% increase from $17.4 billion in 2023. This growth was primarily driven by a 6.0% increase in U.S. net sales, attributed to higher commodity market pricing for fresh chicken products, despite a slight decrease in sales volume due to one less week in the fiscal year.

The company experienced notable changes in its operational segments. The U.S. segment generated $10.6 billion in net sales, while Europe and Mexico reported $5.1 billion and $2.1 billion, respectively. The Europe segment saw a decrease in sales, primarily due to lower sales volume and prices, although this was partially offset by favorable foreign currency translation. In Mexico, sales were negatively impacted by currency translation but benefited from improved product mix and increased commodity chicken prices.

Strategically, Pilgrim's Pride has been focusing on restructuring initiatives within its Europe segment, which included the reorganization of reporting units and the reassignment of assets. The company also recognized restructuring-related expenses of $93.4 million during the year. Additionally, the company has been actively managing its supply chain and labor costs, particularly in response to inflationary pressures and labor market challenges in Europe.

Operationally, Pilgrim's Pride employed over 61,600 individuals as of the end of 2024, with approximately 35.4% of its workforce covered by collective bargaining agreements. The company has not faced any labor-related work stoppages in over a decade, indicating stable employee relations. The company continues to invest in its workforce and operational efficiencies, with capital expenditures totaling $458.5 million in 2024, aimed at growth projects and improving operational efficiencies.

Looking ahead, Pilgrim's Pride anticipates continued challenges from global economic conditions, including inflation and commodity price volatility. The company plans to leverage its vertically integrated structure to manage costs and maintain profitability. Management remains focused on enhancing operational performance and addressing consumer preferences, particularly in the context of evolving market dynamics and competition in the protein industry.