INVESTOR RELATIONS
<< Back
Feb 20, 2020

Pilgrim’s Pride Closes Fiscal Year 2019 with Net Sales of $11.41 Billion, Operating Income of $691 Million and GAAP EPS of $1.83, an 83% increase over the $1.00 in Fiscal Year 2018

GREELEY, Colo., Feb. 20, 2020 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC) reports fourth quarter and year-end 2019 financial results.

2019 Highlights

  • Operating Income margins of 6.4% in U.S., 8.9% in Mexico and 3.3% in Europe operations, respectively.
  • Net Income of $455.9 million, or an 84% increase from last year.
  • Adjusted EBITDA of $973.8 million, a 22% increase over 2018, or an 8.5% margin.
  • Portfolio strategy and geographic diversification reducing the impact of challenging specific market conditions. EBITDA outpacing the industry competition, driven by improved execution and increased operating performance across all business units, including the U.S., Mexico and Europe.
  • Operating results from legacy European business rose by 7% on better operational efficiencies and input cost mitigation. Newly acquired operations already generating positive EBITDA, and on track to achieve performance competitive with leading companies with similar portfolio in next few years.
  • We remain motivated to pursue additional growth potential and product differentiation, aligning our strategic priorities to continue to strengthen our differentiated global platforms.

Fourth Quarter

  • Net Sales of $3.06 billion.
  • Net GAAP Income of $92.1 million, including one-time asset acquisition net gain due to valuation and acquisition adjustments.
  • Operating Income margins of 3.2% in U.S., 2.5% in Mexico and 2.1% in Europe operations, respectively.
  • Adjusted EBITDA of $161.6 million (or a 5.3% margin).
Unaudited (2) Thirteen Weeks Ended   Fifty-Two Weeks Ended
  December 29, 2019   December 30, 2018   Y/Y Change   December 29, 2019   December 30, 2018   Y/Y Change
  (In millions, except per share and percentages)    
Net sales $ 3,063.5     $ 2,656.8     +15.3 %   $ 11,409.2     $ 10,937.8     +4.3 %
U.S. GAAP EPS $ 0.37     $ (0.03 )   +1,333.3 %   $ 1.83     $ 1.00     +83.0 %
Operating income $ 85.8     $ 23.6     +263.6 %   $ 690.6     $ 495.7     +39.3 %
Adjusted EBITDA(1) $ 161.6     $ 111.0     +45.6 %   $ 973.8     $ 798.2     +22.0 %
Adjusted EBITDA margin(1) 5.3 %   4.2 %   +1.1  pts   8.5 %   7.3 %   +1.2  pts
                                   

(1) Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.
(2) Comparisons include Tulip from 10/15/19 forward.

“While overall global market conditions including U.S. commodity chicken improved during 2019, our team members have continued to deliver on our strategy, achieving a significant increase in relative performance compared to last year and to our industry competition. Our diverse global footprint has contributed to well-balanced and more consistent results against different specific market conditions. We maintain our approach to the successful Key Customer strategy, which is the basis for our strong growth. While our product portfolio is already differentiated, we are investing to further innovate, and increase our capacities and capabilities to meet customer demand. We expect value added, specialty products to account for a meaningfully larger portion of our total results over the next few years as we continue to de-emphasize the mix of more volatile commodity sales and strengthen our margin profile,” stated Jayson Penn, Chief Executive Officer of Pilgrim's.

“In Q4, our operating performance in the U.S. has continued to improve, driven by our partnership with Key customers and the relentless focus on executing and delivering the best results possible despite changes in market conditions. Within our case-ready and small bird businesses, strong demand, especially from QSR customers, has continued to outstrip supply. The commodity sector has continued to be challenging but we experienced improved market conditions compared to 2018. Our U.S. Prepared Foods continues to evolve, reflecting the investments made over the last few years.”

“Weak macro conditions during Q4 in Mexico contributed to uncertainties in consumer spending and demand, especially in traditional markets. Although volume growth was solid, prices were below seasonal expectations. Despite the difficult market environment in Q4, our Mexican business has continued to perform well operationally versus the industry, and was able to generate an improvement in results during fiscal 2019 compared to 2018.”

“Our legacy European operations once again produced continuing improvement in results driven by increased operational efficiencies, investments in automation, focus on higher yields, and better mitigation of input costs. Joining our global team during the quarter, the newly acquired operations are off to a strong start and already generating positive EBITDA. The solid performance was driven by strong pork exports and good domestic demand, as well as from the initial implementations of operational improvements.”

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, February 21, at 7:00 a.m. MT (9 a.m. ET).  Participants are encouraged to pre-register for the conference call using the link below.  Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator.  Participants may pre-register at any time, including up to and after the call start time.

To pre-register, go to: https://services.choruscall.com/links/ppc200221.html

You may also reach the pre-registration link by logging in through the investor section of our website at www.pilgrims.com and clicking on the link under “Upcoming Events.”

For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.” Please note that to submit a question to management during the call, you must be logged in via telephone.

Replays of the conference call will be available on Pilgrim’s website approximately two hours after the call concludes and can be accessed through the “Investor” section of www.pilgrims.com. The webcast will be available for replay through May 21, 2020.

About Pilgrim’s Pride

Pilgrim’s employs approximately 58,500 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.

Forward-Looking Statements

Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including anti-dumping proceedings and countervailing duty proceedings; and the impact of uncertainties of litigation as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim’s Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: Dunham Winoto
  Investor Relations
  IRPPC@pilgrims.com
  (970) 506-8192
  www.pilgrims.com
   


PILGRIM’S PRIDE CORPORATION
CONSOLIDATED BALANCE SHEETS
 
    December 29, 2019   December 30, 2018
    (In thousands, except share and par value data)
Cash and cash equivalents   $ 260,568     $ 338,386  
Restricted cash and cash equivalents   20,009     23,192  
Trade accounts and other receivables, less allowance for doubtful accounts   741,281     561,549  
Accounts receivable from related parties   944     1,331  
Inventories   1,383,535     1,159,519  
Income taxes receivable   60,204     38,479  
Prepaid expenses and other current assets   131,695     112,201  
Total current assets   2,598,236     2,234,657  
Deferred tax assets   4,426     4,248  
Operating lease assets, net   301,513      
Other long-lived assets   36,325     16,717  
Identified intangible assets, net   596,053     564,128  
Goodwill   973,750     949,750  
Property, plant and equipment, net   2,592,061     2,161,702  
Total assets   $ 7,102,364     $ 5,931,202  
         
Accounts payable   $ 996,484     $ 827,825  
Accounts payable to related parties   3,819     7,269  
Revenue contract liability   41,770     33,328  
Accrued expenses and other current liabilities   572,615     389,175  
Income taxes payable   7,075     8,221  
Current maturities of long-term debt   26,392     30,405  
Total current liabilities   1,648,155     1,296,223  
Long-term debt, less current maturities   2,276,029     2,295,190  
Noncurrent operating lease liability, less current maturities   235,382      
Noncurrent income taxes payable   7,731     7,731  
Deferred tax liabilities   301,907     237,422  
Other long-term liabilities   97,100     75,051  
Total liabilities   4,566,304     3,911,617  
Common stock, $.01 par value, 800,000,000 shares authorized; 261,119,064 and 260,396,032 shares issued at year-end 2019 and year-end 2018, respectively; 249,572,119 and 248,965,081 shares outstanding at year-end 2019 and year-end 2018, respectively   2,611     2,604  
Treasury stock, at cost, 11,546,945 shares and 11,430,951 shares at year-end 2019 and year-end 2018, respectively   (234,892 )   (231,994 )
Additional paid-in capital   1,955,261     1,945,136  
Retained earnings   877,812     421,888  
Accumulated other comprehensive loss   (75,129 )   (127,834 )
Total Pilgrim’s Pride Corporation stockholders’ equity   2,525,663     2,009,800  
Noncontrolling interest   10,397     9,785  
Total stockholders’ equity   2,536,060     2,019,585  
Total liabilities and stockholders' equity   $ 7,102,364     $ 5,931,202  
                 


PILGRIM’S PRIDE CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(Unaudited)
 
    Thirteen Weeks Ended   Fifty-Two Weeks Ended
    December 29, 2019   December 30, 2018   December 29, 2019   December 30, 2018
    (In thousands, except per share data)
Net sales   $ 3,063,489     $ 2,656,789     $ 11,409,219     $ 10,937,784  
Cost of sales   2,862,094     2,544,941     10,338,825     10,094,308  
Gross profit   201,395     111,848     1,070,394     843,476  
Selling, general and administrative expense   115,597     85,629     379,910     343,025  
Administrative restructuring activities   6     2,584     (84 )   4,765  
Operating income   85,792     23,635     690,568     495,686  
Interest expense, net of capitalized interest   33,446     36,911     132,630     162,812  
Interest income   (2,796 )   (3,146 )   (14,277 )   (13,811 )
Foreign currency transaction loss (gain)   (1,006 )   19,962     6,917     17,160  
Gain on bargain purchase   (56,880 )       (56,880 )    
Miscellaneous, net   2,112     (921 )   4,633     (2,702 )
Income before income taxes   110,916     (29,171 )   617,545     332,227  
Income tax expense (benefit)   18,681     (20,944 )   161,009     85,423  
Net income   92,235     (8,227 )   456,536     246,804  
Less: Net income (loss) attributable to noncontrolling interests   155     (903 )   612     (1,141 )
Net income (loss) attributable to Pilgrim’s Pride Corporation
  $ 92,080     $ (7,324 )   $ 455,924     $ 247,945  
                 
Weighted average shares of common stock outstanding:                
Basic   249,571     248,980     249,401     248,945  
Effect of dilutive common stock equivalents   278     386     308     204  
Diluted   249,849     249,366     249,709     249,149  
                 
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:                
Basic   $ 0.37     $ (0.03 )   $ 1.83     $ 1.00  
Diluted   $ 0.37     $ (0.03 )   $ 1.83     $ 1.00  
                                 


PILGRIM’S PRIDE CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
 
 
    Fifty-Two Weeks Ended
    December 29, 2019   December 30, 2018
    (In thousands)
Cash flows from operating activities:        
Net income   $ 456,536     $ 246,804  
Adjustments to reconcile net income to cash provided by operating activities:        
Depreciation and amortization   287,230     274,088  
Asset impairment       3,504  
Gain on bargain purchase   (56,880 )    —  
Foreign currency transaction losses (gains) related to borrowing arrangements   (4,970 )   5,267  
Loss on early extinguishment of debt recognized as a component of interest expense       15,818  
Amortization of bond premium   (668 )   (668 )
Accretion of bond discount   982     812  
Gain on property disposals   (10,896 )   (1,889 )
Gain on equity method investments   (63 )   (63 )
Share-based compensation   10,132     13,153  
Deferred income tax expense   42,478     32,540  
Changes in operating assets and liabilities:        
Trade accounts and other receivables   (25,000 )   (10,918 )
Inventories   (111,748 )   83,174  
Prepaid expenses and other current assets   (15,490 )   (11,612 )
Accounts payable and accrued expenses   119,892     86,834  
Income taxes   (26,378 )   (248,470 )
Long-term pension and other postretirement obligations   (9,221 )   (6,751 )
Other   5,764     4,458  
Cash provided by operating activities   666,521     491,650  
Cash flows from investing activities:        
Acquisitions of property, plant and equipment   (348,120 )   (348,666 )
Purchase of acquired business, net of cash acquired   (384,694 )    
Proceeds from property disposals   15,753     9,775  
Cash used in investing activities   (717,061 )   (338,891 )
Cash flows from financing activities:        
Proceeds from revolving line of credit and long-term borrowings   259,466     748,382  
Payments on revolving line of credit, long-term borrowings and capital lease obligations   (289,917 )   (1,117,009 )
Proceeds (distribution) from equity contribution under the Tax Sharing Agreement between JBS USA Food Company Holdings and Pilgrim's Pride Corporation   (525 )   5,558  
Payment on early extinguishment of debt       (9,781 )
Capital contributions to subsidiary by noncontrolling stockholders       1,421  
Payment of capitalized loan costs   (652 )   (12,581 )
Purchase of common stock under share repurchase program   (2,898 )   (236 )
Cash used in financing activities   (34,526 )   (384,246 )
Effect of exchange rate changes on cash and cash equivalents   4,065     3,534  
Decrease in cash and cash equivalents   (81,001 )   (227,953 )
Cash and cash equivalents, beginning of period   361,578     589,531  
Cash and cash equivalents, end of period   $ 280,577     $ 361,578  
Supplemental Disclosure Information:        
Interest paid (net of amount capitalized)   $ 130,882     $ 154,627  
Income taxes paid   125,856     253,932  
             

PILGRIM’S PRIDE CORPORATION
Selected Financial Information
(Unaudited)

“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) income (loss) attributable to noncontrolling interests, (2) charges or income from restructuring activities, (3) reorganization items, (4) losses on early extinguishment of debt and (5) foreign currency transaction losses (gains). EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), to compare the performance of companies.  We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors.  EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP.  They should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
         
(Unaudited)   Thirteen Weeks Ended   Fifty-Two Weeks Ended
    December 29, 2019   December 30, 2018   December 29, 2019   December 30, 2018
    (In thousands)
Net income (loss)   $ 92,235     $ (8,227 )   $ 456,536     $ 246,804  
Add:                
Interest expense, net   30,650     33,765     118,353     149,001  
Income tax expense (benefit)   18,681     (20,944 )   161,009     85,423  
Depreciation and amortization   76,849     66,975     287,230     274,088  
EBITDA   218,415     71,569     1,023,128     755,316  
Add:                
Foreign currency transaction loss (gain)   (1,006 )   19,962     6,917     17,160  
Transaction costs related to acquisitions   1,239         1,302     320  
Restructuring activities loss (gain)   6     2,584     (84 )   4,765  
Other nonrecurring losses       16,023         19,485  
Minus:                
Gain on bargain purchase   56,880         56,880      
Net income (loss) attributable to noncontrolling interest   155     (903 )   612     (1,141 )
Adjusted EBITDA   $ 161,619     $ 111,041     $ 973,771     $ 798,187  
                                 

The summary unaudited consolidated income statement data for the twelve months ended December 29, 2019 (the LTM Period) have been calculated by summing each of the unaudited thirteen week periods within the audited fifty-two week period ended December 29, 2019.

PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
                     
(Unaudited)   Thirteen Weeks Ended   LTM Ended December 29, 2019
    March 31,
2019
  June 30,
2019
  September 29,
2019
  December 29, 2019  
  (In thousands)
Net income   $ 84,125     $ 170,080     $ 110,096     $ 92,235     $ 456,536  
Add:                    
Interest expense, net   30,222     30,150     27,330     30,650     118,352  
Income tax expense   20,416     75,547     46,365     18,681     161,009  
Depreciation and amortization   67,182     71,348     71,851     76,849     287,230  
EBITDA   201,945     347,125     255,642     218,415     1,023,127  
Add:                    
Foreign currency transaction loss (gain)   2,636     2,260     3,027     (1,006 )   6,917  
Transaction costs related to acquisitions           63     1,239     1,302  
Restructuring activities loss (gain)   (27 )   (43 )   (20 )   6     (84 )
Minus:                    
Gain on bargain purchase               56,880     56,880  
Net income attributable to noncontrolling interest   114     12     331     155     612  
Adjusted EBITDA   $ 204,440     $ 349,330     $ 258,381     $ 161,619     $ 973,770  
                                         


PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
 
(Unaudited)   Thirteen Weeks Ended   Fifty-Two Weeks Ended   Thirteen Weeks Ended   Fifty-Two Weeks Ended
    Dec 29, 2019   Dec 30, 2018   Dec 29, 2019   Dec 30, 2018   Dec 29, 2019   Dec 30, 2018   Dec 29, 2019   Dec 30, 2018
  (In thousands, except percent of net sales)
Net income (loss)   $ 92,235     $ (8,227 )   $ 456,536     $ 246,804     3.01 %   (0.31 )%   4.00 %   2.26 %
Add:                                
Interest expense, net   30,650     33,765     118,353     149,001     1.00 %   1.27 %   1.04 %   1.36 %
Income tax expense (benefit)   18,681     (20,944 )   161,009     85,423     0.61 %   (0.79 )%   1.41 %   0.78 %
Depreciation and amortization   76,849     66,975     287,230     274,088     2.51 %   2.52 %   2.52 %   2.51 %
EBITDA   218,415     71,569     1,023,128     755,316     7.13 %   2.69 %   8.97 %   6.91 %
Add:                                
Foreign currency transaction loss (gain)   (1,006 )   19,962     6,917     17,160     (0.03 )%   0.75 %   0.06 %   0.16 %
Transaction costs related to acquisitions   1,239         1,302     320     0.04 %   %   0.01 %   %
Restructuring activities loss (gain)   6     2,584     (84 )   4,765     %   0.10 %   %   0.04 %
Other nonrecurring losses       16,023         19,485     %   0.60 %   %   0.18 %
Minus:                                
Gain on bargain purchase   56,880         56,880         1.86 %   %   0.50 %   %
Net income (loss) attributable to noncontrolling interest   155     (903 )   612     (1,141 )   0.01 %   (0.03 )%   0.01 %   (0.01 )%
Adjusted EBITDA   $ 161,619     $ 111,041     $ 973,771     $ 798,187     5.28 %   4.18 %   8.53 %   7.30 %
                                 
Net sales   $ 3,063,489     $ 2,656,789     $ 11,409,219     $ 10,937,784                  
                                                 

A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation (“Pilgrim's”) per common diluted share to adjusted net income (loss) attributable to Pilgrim's per common diluted share is as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Net Income
(Unaudited)
               
  Thirteen Weeks Ended   Fifty-Two Weeks Ended
  December 29,
2019
  December 30,
2018
  December 29,
2019
  December 30,
2018
  (In thousands, except per share data)
Net income (loss) attributable to Pilgrim's $ 92,080     $ (7,324 )   $ 455,924     $ 247,945  
Adjustments, net of tax:              
Loss on early extinguishment of debt             12,449  
Transaction costs related to acquisitions and restructuring activities net loss 920     1,919     900     3,778  
Other nonrecurring losses     11,903         14,475  
Foreign currency transaction loss (gain) (744 )   14,829     5,113     12,748  
Gain on bargain purchase (56,880 )       (56,880 )    
  $ 35,376     $ 21,327     $ 405,057     $ 291,395  
U.S. Tax Cuts & Jobs Act transition tax             26,400  
Adjusted net income attributable to Pilgrim's $ 35,376     $ 21,327     $ 405,057     $ 317,795  
Weighted average diluted shares of common stock outstanding 249,849     249,366     249,709     249,149  
Adjusted net income attributable to Pilgrim's per common diluted share $ 0.14     $ 0.09     $ 1.62     $ 1.28  
                               

A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures. Net income (loss) per share is calculated by dividing the net income (loss) attributable to Pilgrim's Pride Corporation stockholders by the weighted average number of diluted shares.

PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
               
  Thirteen Weeks Ended   Fifty-Two Weeks Ended
  December 29, 2019   December 30, 2018   December 29, 2019   December 30, 2018
  (In thousands, except per share data)
U.S. GAAP EPS $ 0.37     $ (0.03 )   $ 1.83     $ 1.00  
Adjustments, net of tax:              
Loss on early extinguishment of debt             0.05  
Transaction costs related to acquisitions and restructuring activities loss (gain)     0.01         0.02  
Other nonrecurring losses     0.05         0.05  
Foreign currency transaction loss (gain)     0.06     0.02     0.05  
Gain on bargain purchase (0.23 )       (0.23 )    
  0.14     0.09     1.62     1.17  
U.S. Tax Cuts & Jobs Act transition tax             0.11  
Adjusted EPS $ 0.14     $ 0.09     $ 1.62     $ 1.28  
               
Weighted average diluted shares of common stock outstanding 249,849     249,366     249,709     249,149  
                       


PILGRIM'S PRIDE CORPORATION
Supplementary Geographic Data
(Unaudited)
                 
    Thirteen Weeks Ended   Fifty-Two Weeks Ended
    December 29, 2019   December 30, 2018   December 29, 2019   December 30, 2018
    (In thousands)
Sources of net sales by geographic region of origin:                
U.S.   $ 1,904,515     $ 1,820,952     $ 7,636,716     $ 7,425,661  
Europe   815,397     514,541     2,383,793     2,148,666  
Mexico   343,577     321,296     1,388,710     1,363,457  
Total net sales   $ 3,063,489     $ 2,656,789     $ 11,409,219     $ 10,937,784  
                 
Sources of cost of sales by geographic region of origin:                
U.S.   $ 1,779,959     $ 1,772,730     $ 6,903,237     $ 6,909,779  
Europe   759,788     476,844     2,212,042     1,977,838  
Mexico   322,371     295,465     1,223,642     1,206,823  
Elimination   (24 )   (98 )   (96 )   (132 )
Total cost of sales   $ 2,862,094     $ 2,544,941     $ 10,338,825     $ 10,094,308  
                 
Sources of gross profit by geographic region of origin:                
U.S.   $ 124,556     $ 48,222     $ 733,479     $ 515,882  
Europe   55,609     37,697     171,751     170,828  
Mexico   21,206     25,831     165,068     156,634  
Elimination   24     98     96     132  
Total gross profit   $ 201,395     $ 111,848     $ 1,070,394     $ 843,476  
                 
Sources of operating income by geographic region of origin:                
U.S.   $ 60,307     $ (9,579 )   $ 487,275     $ 291,381  
Europe   16,949     15,979     79,182     84,524  
Mexico   8,512     17,137     124,015     119,649  
Elimination   24     98     96     132  
Total operating income   $ 85,792     $ 23,635     $ 690,568     $ 495,686  
                                 

pilgrims_logo_07112019.jpg

Source: Pilgrim's Pride Corporation