UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K |
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 7, 2017
PILGRIM'S PRIDE CORPORATION
(Exact Name of registrant as specified in its charter)
Delaware | 1-9273 | 75-1285071 | |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |
1770 Promontory Circle Greeley, CO | 80634-9038 | ||
(Address of principal executive offices) | (Zip Code) | ||
Registrant's telephone number, including area code: (970) 506-8000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 7.01. Regulation FD Disclosure.
Attached hereto as Exhibit 99.1 is an overview of Pilgrim's Pride Corporation to be referenced during the Company's earnings conference call of November 8, 2017.
The information furnished in Item 7.01 and in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any of Pilgrim's Pride Corporation's filings under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1 Press release dated November 7, 2017.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PILGRIM’S PRIDE CORPORATION | |||
Date: | November 7, 2017 | /s/ Fabio Sandri | |
Fabio Sandri | |||
Chief Financial Officer | |||
Exhibit Index
Exhibit 99.1 Press release dated November 7, 2017.
Pilgrim’s Pride Corporation
(NASDAQ: PPC)
Financial Results for Third Quarter Ended September 24, 2017
Cautionary Notes and Forward-Looking Statements
Statements contained in this presentation that share our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,”
“estimate,” “should,” “expect,” “project,” “plan,” “imply,” “intend,” “foresee” and similar expressions, are forward-looking statements that reflect our current views
about future events and are subject to risks, uncertainties and assumptions. Such risks, uncertainties and assumptions include the following matters affecting the
chicken industry generally, including fluctuations in the commodity prices of feed ingredients and chicken; actions and decisions of our creditors; our ability to
obtain and maintain commercially reasonable terms with vendors and service providers; our ability to maintain contracts that are critical to our operations; our
ability to retain management and other key individuals; certain of our reorganization and exit or disposal activities, including selling assets, idling facilities,
reducing production and reducing workforce, resulted in reduced capacities and sales volumes and may have a disproportionate impact on our income relative to
the cost savings; risk that the amounts of cash from operations together with amounts available under our exit credit facility will not be sufficient to fund our
operations; management of our cash resources, particularly in light of our substantial leverage; restrictions imposed by, and as a result of, our substantial
leverage; additional outbreaks of avian influenza or other diseases, either in our own flocks or elsewhere, affecting our ability to conduct our operations and/or
demand for our poultry products; contamination of our 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; changes in laws or regulations affecting our operations or the application thereof; new immigration legislation or increased enforcement
efforts in connection with existing immigration legislation that cause our costs of business to increase, cause us to change the way in which we do business or
otherwise disrupt our operations; competitive factors and pricing pressures or the loss of one or more of our largest customers; currency exchange rate
fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and
distribution channels; and the impact of uncertainties of litigation as well as other risks described herein and under “Risk Factors” in the Company’s Annual
Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”).
Actual results could differ materially from those projected in these forward-looking statements as a result of these factors, among others, many of which are
beyond our control. In making these statements, we are not undertaking, and specifically decline to undertake, any obligation to address or update each or any
factor in future filings or communications regarding our business or results, and we are not undertaking to address how any of these factors may have caused
changes to information contained in previous filings or communications. Although we have attempted to list comprehensively these important cautionary risk
factors, we must caution investors and others that other factors may in the future prove to be important and affecting our business or results of operations.
This presentation may include information that may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100, including
EBITDA, Adjusted EBITDA, LTM EBITDA, Net Debt, Free Cash Flow, Adjusted EBITDA Margin and others. Accordingly, we have provided tables in the
accompanying appendix and in our previous filings with the SEC that reconcile these measures to their corresponding GAAP-based measures and explain why
these measures are useful to investors, which can be obtained from the Consolidated Statements of Income provided with our previous filings with the SEC. Our
method of computation may or may not be comparable to other similarly titled measures used in filings with the SEC by other companies. See the consolidated
statements of income and consolidated statements of cash flows included in our financial statements..
2
Pullet placements are flat indicating modest potential production growth for the
remainder of 2017 and into 2018.
2017 Pullet Placements Flat YTD
Source: USDA 3
Intended Pullet Placements
7,609
8,240
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
9,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
ou
sa
nd
H
ea
d
Intended Pullet Placements
2016 2017 5 Year Average
Decline in Egg Productivity Offsetting Layer Growth
Source: USDA 4
Hatching layers are up to counter less productive new breed and older flock, both of
which generate fewer eggs per bird.
53,571 57,014
0
10,000
20,000
30,000
40,000
50,000
60,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
ou
sa
nd
H
ea
d
Broiler Type Hatching Layers
2016 2017 5 Year Average
1,881
1,840
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Egg Production Per 100 Layers
2016 2017 5 Year Average
5
84.00%
85.00%
86.00%
87.00%
88.00%
89.00%
90.00%
91.00%
92.00%
93.00%
94.00%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
%
Hatchery Utilization
2016 2017 5 year avg.
Hatchery Utilization Remains Close to Peak Levels
Lower Hatchability Reduces Impact of
+2.7% YTD Egg Sets
Source: USDA 6
180,000
185,000
190,000
195,000
200,000
205,000
210,000
215,000
220,000
225,000
T
h
o
u
s
a
n
d
s
o
f
E
g
g
s
Chicken Egg Sets
by Week - USDA
2015 2016 5 year avg 2017
79.50%
80.00%
80.50%
81.00%
81.50%
82.00%
82.50%
83.00%
%
Chicken Hatchability
by Week - USDA
2015 2016 5 year avg 2017
2017 Chick Placements Modestly Higher
Source: USDA 7
Avg Weight Trending Down; Jumbo Bird Share Not Growing
After Significant Increase Since 2011
Source: USDA 8
Hurricane Impacting Cold Storage Inventories
Source: USDA
Overall inventories rose in September due temporary reduction in demand because of
hurricane-related logistical issues.
9
769
823
200
300
400
500
600
700
800
900
1,000
Ja
n
Fe
b
M
ar Ap
r
M
ay Ju
n Ju
l
Au
g
Se
p
Oc
t
No
v
De
c
Chicken Cold Storage
2015 2016 2017 5 Year Average
After Strong Grilling Season,
Cutout Values Moving Closer to Seasonal Trends
Source: PPC
10
69.01
50.00
55.00
60.00
65.00
70.00
75.00
80.00
85.00
90.00
95.00
1/
1
1/
15
1/
29
2/
12
2/
26
3/
11
3/
25 4/
8
4/
22 5/
6
5/
20 6/
3
6/
17 7/
1
7/
15
7/
29
8/
12
8/
26 9/
9
9/
23
10
/7
10
/2
1
11
/4
11
/1
8
12
/2
12
/1
6
12
/3
0
Ce
nt
s/
Lb
2015 2016 2017 5 Year Avg
Cutout Value
Wings Counter-seasonally Strong,
Other Parts Tracking to 5-year Average
Source: USDA 11
111.31
75.00
95.00
115.00
135.00
155.00
175.00
195.00
1/
6/2
01
7
1/
20
/2
01
7
2/
3/2
01
7
2/
17
/2
01
7
3/
3/2
01
7
3/
17
/2
01
7
3/
31
/2
01
7
4/
14
/2
01
7
4/
28
/2
01
7
5/
12
/2
01
7
5/
26
/2
01
7
6/
9/2
01
7
6/
23
/2
01
7
7/
7/2
01
7
7/
21
/2
01
7
8/
4/2
01
7
8/
18
/2
01
7
9/
1/2
01
7
9/
15
/2
01
7
9/
29
/2
01
7
10
/13
/20
17
10
/27
/20
17
11
/10
/20
17
11
/24
/20
17
12
/8/
20
17
12
/22
/20
17
Ce
nt
s/L
b
USDA Boneless/Skinless Breast NE
2015 2016 2017 5 Year Average
USDA Boneless/Skinless Breast NE
137.15
75.00
95.00
115.00
135.00
155.00
175.00
195.00
215.00
235.00
1/
6/2
01
7
1/
20
/2
01
7
2/
3/2
01
7
2/
17
/2
01
7
3/
3/2
01
7
3/
17
/2
01
7
3/
31
/2
01
7
4/
14
/2
01
7
4/
28
/2
01
7
5/
12
/2
01
7
5/
26
/2
01
7
6/
9/2
01
7
6/
23
/2
01
7
7/
7/2
01
7
7/
21
/2
01
7
8/
4/2
01
7
8/
18
/2
01
7
9/
1/2
01
7
9/
15
/2
01
7
9/
29
/2
01
7
10
/13
/20
17
10
/27
/20
17
11
/10
/20
17
11
/24
/20
17
12
/8/
20
17
12
/22
/20
17
Ce
nt
s/L
b
USDA Tenders NE
2015 2016 2017 5 Yr Average
USDA Tenders NE
39.02
15.00
20.00
25.00
30.00
35.0
40.00
45.00
50.00
1/
6/2
01
7
1/
20
/2
01
7
2/
3/2
01
7
2/
17
/2
01
7
3/
3/2
01
7
3/
17
/2
01
7
3/
31
/2
01
7
4/
14
/2
01
7
4/
28
/2
01
7
5/
12
/2
01
7
5/
26
/2
01
7
6/
9/2
01
7
6/
23
/2
01
7
7/
7/2
01
7
7/
21
/2
01
7
8/
4/2
01
7
8/
18
/2
01
7
9/
1/2
01
7
9/
15
/2
01
7
9/
29
/2
01
7
10
/13
/20
17
10
/27
/20
17
11
/10
/20
17
11
/24
/20
17
12
/8/
20
17
12
/22
/20
17
Ce
nt
s/L
b
USDA Leg Quarters NE
2015 2016 2017 5 Year Average
USDA Leg Quarters
204.61
125.00
135.00
145.00
155.00
16 .
17 .00
185.00
195.00
20 .
21 .
225.00
1/
6/2
01
7
1/
20
/2
01
7
2/
3/2
01
7
2/
17
/2
01
7
3/
3/2
01
7
3/
17
/2
01
7
3/
31
/2
01
7
4/
14
/2
01
7
4/
28
/2
01
7
5/
12
/2
01
7
5/
26
/2
01
7
6/
9/2
01
7
6/
23
/2
01
7
7/
7/2
01
7
7/
21
/2
01
7
8/
4/2
01
7
8/
18
/2
01
7
9/
1/2
01
7
9/
15
/2
01
7
9/
29
/2
01
7
10
/13
/20
17
10
/27
/20
17
11
/10
/20
17
11
/24
/20
17
12
/8/
20
17
12
/22
/20
17
Ce
nt
s/L
b
USDA Whole Wings NE
2015 2016 2017 5 Year Average
USDA Whole Wings NE
12
Small Bird and Retail Contracts
In-line with Seasonality and Above 2016
Source: EMI
EMI WOG 2.5-4 LBS
82.3
60.00
65.00
70.00
75.00
80.00
85.00
90.00
95.00
100.00
105.00
110.00
1/2
/20
17
1/1
6/2
017
1/3
0/2
017
2/1
3/2
017
2/2
7/2
017
3/1
3/2
017
3/2
7/2
017
4/1
0/2
017
4/2
4/2
017
5/8
/20
17
5/2
2/2
017
6/5
/20
17
6/1
9/2
017
7/3
/20
17
7/1
7/2
017
7/3
1/2
017
8/1
4/2
017
8/2
8/2
017
9/1
1/2
017
9/2
5/2
017
10/
9/2
017
10/
23/
201
7
11/
6/2
017
11/
20/
201
7
12/
4/2
017
12/
18/
201
7
$/L
b.
2016 2017 5 Year Average
Corn Stocks to remain at high levels in ’17/18
After record stocks in 2016, 2017 stocks projected slightly lower but market remains well
supplied.
USDA lowers global stocks-to-use for 2017.
Source: USDA 13
72.2
89.9
94.1
92.8
78.5
73.4
67.9
93.7
109.4
103.2
125.7
121.8
50
60
70
80
90
100
110
120
130
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Global Corn Stocks
Excluding China
(Million Metric Tons)
12.4%
14.4%
14.9%
14.1%
11.7%
10.6%
10.2%
12.6%
14.0%
13.8%
15.1%
14.8%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
16.0%
20 6 20 7 2008 2009 201 2011 2012 2013 2014 2015 2016 2017
Global Corn Stocks/Use
Excluding China
Global Soybean Inventories Increasing
Global inventories of soybeans remain at record high levels, with expected growth in
2017.
USDA forecasts continued growth in oilseed demand in 2018 .
Source: USDA 14
52.8
62.7
52.9
44.0
59.5
69.9
53.4 57.4
61.8
77.5 77.7
94.9 96.1
0
20
40
60
80
100
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
Global Soybean Stocks
(Million Metric Tons)
27.8%
23.0%
19.9%
25.0%
27.6%
20.8%
22.0% 22.4%
25.7%
24.7%
28.7%
27.9%
15.0%
17.0%
19.0%
21.0%
23.0%
25.0%
27.0%
29.0%
31.0%
33.0%
35.0%
2 06 2 07 2008 2009 2010 2011 201 2013 2014 2015 2016 2017p
Global Soybean Stocks/Use
Third Quarter 2017 Financial Review
Strength across all US business units,
GNP operations significantly improved,
MX results above expectations.
SG&A higher due to addition of GNP
and Moy Park, investments in brands in
USA and Mexico, and $19MM non-
recurring acquisition/restructuring.
Adjusted Q3-17 EBITDA well above Q3-
16 and was among the top quarterly
performance in the U.S.
Main Indicators ($M)** Q3-17 Q3-16
Net Revenue 2,793.9 2,495.3
Gross Profit 478.6 253.1
SG&A 106.4 76.3
Operating Income 372.2 176.8
Net Interest 22.5 18.9
Net Income 232.7 98.7
Earnings Per Share
(EPS)
0.93 0.39
Adjusted EBITDA* 463.6 237.4
Adjusted EBITDA
Margin*
16.6% 9.5%
* This is a non-GAAP measurement considered by management to be
useful in understanding our results. Please see the appendix and most
recent SEC financial filings for definition of this measurement and
reconciliation to GAAP.
** Consolidated results include full-quarter of Moy Park, in accordance to
U.S. GAAP.
In $M U.S. EU MX
Net Revenue 1,938.5 514.3 341.0
Adjusted Operating
Income*
322.0 21.3 45.7
Adjusted Operating
Income Margin*
16.6% 4.1% 13.4%
15 Source: PPC
Third Quarter 2017 Capital Spending
Capex (US$M)
Source: PPC
Strong Free Cash Flow generation has enabled us to direct more capital spending
towards identified projects with rapid payback and structural projects.
New strategic projects will support key customers growth and de-emphasize our
exposure to commodity markets by yielding a more differentiated portfolio.
16
Capex (US$M)
Investor Relations Contact
Investor Relations: Dunham Winoto
Director, Investor Relations
E-mail: IRPPC@pilgrims.com
Address: 1770 Promontory Circle
Greeley, CO 80634 USA
Website: www.pilgrims.com
17
APPENDIX
18
Appendix: EBITDA Reconciliation
Source: PPC.
“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: (i) income (loss) attributable to non-controlling interests, (ii) restructuring charges, (iii) reorganization items, (iv) losses on
early extinguishment of debt and (v) 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 US (“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 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 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 GAAP.
19 Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 24,
2017
September 25,
2016
September 24,
2017
September 25,
2016
(In thousands)
Net income $ 238,313 $ 101,965 $ 584,242 $ 394,685
Add:
Interest expense, net 22,508 18,866 62,715 56,480
Income tax expense 113,396 53,819 278,046 202,979
Depreciation and amortization 71,763 58,718 204,625 174,128
Minus:
Amortization of capitalized financing costs 1,181 970 3,129 2,859
EBITDA 444,799 232,398 1,126,499 825,413
Add:
Foreign currency transaction loss (gains) (888 ) 4,569 (2,500 ) (1,769 )
Acquisition charges 15,039 — 15,039 —
Restructuring charges 4,147 279 8,496 279
Minus:
Net income (loss) attributable to noncontrolling
interest (460 ) (130 ) 514
(334 )
Adjusted EBITDA $ 463,557 $ 237,376 $ 1,147,020 $ 824,257
Appendix: EBITDA Margin Reconciliation
20
Source: PPC.
EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by Net Revenue for the applicable period.
Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended Thirteen Weeks Ended Thirty-Nine Weeks Ended
September
24, 2017
September
25, 2016
September
24, 2017
September
25, 2016
September
24, 2017
September
25, 2016
September
24, 2017
September
25, 2016
(In thousands)
Net income from
continuing operations $ 238,313
$ 101,965
$ 584,242
$ 394,685
8.53 % 4.09 % 7.28 % 5.26 %
Add:
Interest expense, net 22,508 18,866 62,715 56,480 0.81 % 0.76 % 0.78 % 0.75 %
Income tax expense 113,396
53,819
278,046
202,979
4.06 % 2.16 % 3.46 % 2.70 %
Depreciation and
amortization 71,763
58,718
204,625
174,128
2.57 % 2.35 % 2.55 % 2.32 %
Minus:
Amortization of
capitalized financing
costs 1,181
970
3,129
2,859
0.04 % 0.04 % 0.04 % 0.04 %
EBITDA 444,799 232,398 1,126,499 825,413 15.92 % 9.32 % 14.03 % 10.99 %
Add:
Foreign currency
transaction gains (888 ) 4,569
(2,500 ) (1,769 ) (0.03 )% 0.18 % (0.03 )% (0.02 )%
Acquisition charges 15,039 — 15,039 — 0.54 % — % 0.19 % — %
Restructuring charges 4,147 279 8,496 279 0.15 % 0.01 % 0.11 % — %
Minus:
Net income (loss)
attributable to
noncontrolling interest (460 ) (130 ) 514
(334 ) (0.02 )% (0.01 )% 0.01 % — %
Adjusted EBITDA $ 463,557 $ 237,376 $ 1,147,020 $ 824,257 16.59 % 9.52 % 14.28 % 10.98 %
Net Revenue: $ 2,793,885 $ 2,495,281 $ 8,025,511 $ 7,507,681 $ 2,793,885 $ 2,495,281 $ 8,025,511 $ 7,507,681
Appendix: Reconciliation of Adjusted Earnings
21
Source: PPC.
A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share to adjusted net income (loss) attributable
to Pilgrim's Pride Corporation per common diluted share is as follows:
Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Earnings
(Unaudited)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 24,
2017
September 25,
2016
September 24,
2017
September 25,
2016
(In thousands, except per share data)
Net income attributable to Pilgrim's Pride Corporation $ 232,680
$ 98,657
$ 560,242
$ 369,914
Loss on early extinguishment of debt —
—
—
—
Acquisition and restructuring charges, net of taxes 12,988
—
15,980
—
Foreign currency transaction gains (888 ) 4,569
(2,500 ) (1,769 )
Income before loss on early extinguishment of debt and
foreign currency transaction gains 244,780
103,226
573,722
368,145
Weighted average diluted shares of common stock outstanding 248,988
254,920
248,962
255,037
Income before loss on early extinguishment of debt and
foreign currency transaction gains
per common diluted share $ 0.98
$ 0.41
$ 2.30
$ 1.44
Appendix: Adjusted EPS Bridge
22
Source: PPC.
A reconciliation of GAAP earnings per share (EPS) to adjusted earnings per share (EPS) is as follows:
Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 24, 2017 September 25, 2016 September 24, 2017 September 25, 2016
(In thousands, except per share data)
GAAP EPS $ 0.93
$ 0.39
$ 2.25
$ 1.45
Loss on early extinguishment of debt —
—
—
—
Acquisition and restructuring charges, net of taxes 0.05
—
0.06
—
Foreign currency transaction gains —
0.02
(0.01 ) (0.01 )
Adjusted EPS $ 0.98
$ 0.41
$ 2.30
$ 1.44
Weighted average diluted shares of common stock outstanding 248,988
254,920
248,962
255,037
Appendix: Segment and Geographic Data
23
Source: PPC. Source: PPC
PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 24, 2017 September 25, 2016 September 24, 2017 September 25, 2016
(Unaudited)
(In thousands)
Sources of net sales by country of origin:
US: $ 1,938,542 $ 1,724,625 $ 5,557,089 $ 5,072,351
Mexico: 341,018 307,096 994,568 950,622
Europe: 514,325 463,560 1,473,854 1,484,708
Total net sales: $ 2,793,885 $ 2,495,281 $ 8,025,511 $ 7,507,681
Sources of cost of sales by country of origin:
US: $ 1,561,333 $ 1,545,289 $ 4,656,825 $ 4,470,648
Mexico: 286,617 276,366 822,822 818,749
Europe: 467,374 420,590 1,336,123 1,343,242
Elimination: (23 ) (24 ) (69 ) (71 )
Total cost of sales: $ 2,315,301 $ 2,242,221 $ 6,815,701 $ 6,632,568
Sources of gross profit by country of origin:
US: $ 377,209 $ 179,336 $ 900,262 $ 601,703
Mexico: 54,401 30,730 171,745 131,874
Europe: 46,951 42,970 137,734 141,466
Elimination: 23 24 69 70
Total gross profit: $ 478,584 $ 253,060 $ 1,209,810 $ 875,113
Sources of operating income by country of origin:
US: $ 307,962 $ 141,195 $ 719,121 $ 480,280
Mexico: 45,692 22,603 146,241 108,856
Europe: 18,569 13,027 51,874 55,841
Elimination: 23 23 69 71
Total operating income: $ 372,246 $ 176,848 $ 917,305 $ 645,048