Revenue during the quarter went up marginally by 2.93 percent to $2,020.49 million from $1,962.94 million in the previous year period. Gross margin for the quarter contracted 145 basis points over the previous year period to 10.65 percent. Total expenses were 92.46 percent of quarterly revenues, up from 90.38 percent for the same period last year. That has resulted in a contraction of 208 basis points in operating margin to 7.54 percent.

Operating income for the quarter was $152.35 million, compared with $188.77 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $203.96 million compared with $233.54 million in the prior year period. At the same time, adjusted EBITDA margin contracted 180 basis points in the quarter to 10.09 percent from 11.90 percent in the last year period.

“In-line with expectations, our Q1 results improved sequentially from Q4 driven by stronger results at our U.S. operations while Mexico continued to deliver solid performance despite less favorable FX impact on cost. Highlighting the diversity of our portfolio of bird sizes, small bird and tray-pack have remained strong during the period, while large bird deboning has rebounded from a weaker than expected January and continued to improve with stronger exports and increasing domestic demand. With summer grilling season nearing and a supportive export environment, we expect profits for our large birds to further increase, given the improved cutout. Our exposure to multiple bird sizes through our well-balanced portfolio will provide an opportunity for us to capture the improvement in performance across all bird segments,” stated Bill Lovette, Chief Executive Officer of Pilgrim's.

The company has spent $474 million cash to meet investing activities during the quarter as against cash outgo of $36.46 million in the last year period. It has incurred capital expenditure of $474 million on net basis during the quarter, up 1,199.92 percent or $437.54 million from year ago period.

Cash flow from financing activities was $322.42 million for the quarter as against cash outgo of $6.15 million in the last year period.

Cash and cash equivalents stood at $30.76 million as on Mar. 26, 2017, down 94.72 percent or $551.76 million from $582.52 million on Mar. 27, 2016.

Working capital drops significantly
Pilgrims Pride Corporation has witnessed a decline in the working capital over the last year. It stood at $502.54 million as at Mar. 26, 2017, down 50.66 percent or $515.97 million from $1,018.51 million on Mar. 27, 2016. Current ratio was at 1.55 as on Mar. 26, 2017, down from 2.28 on Mar. 27, 2016.

Cash conversion cycle (CCC) has decreased to 15 days for the quarter from 35 days for the last year period. Days sales outstanding were almost stable at 18 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 23 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding went up to 27 days for the quarter from 25 for the same period last year.