Pilgrims Pride Corporation (PPC) has reported 28.02 percent fall in profit for the quarter ended Sep. 25, 2016. The company has earned $98.66 million, or $0.39 a share in the quarter, compared with $137.06 million, or $0.53 a share for the same period last year. Revenue during the quarter dropped 3.83 percent to $2,031.72 million from $2,112.53 million in the previous year period. Gross margin for the quarter contracted 312 basis points over the previous year period to 10.35 percent. Total expenses were 91.94 percent of quarterly revenues, up from 89.06 percent for the same period last year. That has resulted in a contraction of 288 basis points in operating margin to 8.06 percent.
Operating income for the quarter was $163.82 million, compared with $231.13 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $210.77 million compared with $274.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 261 basis points in the quarter to 10.37 percent from 12.98 percent in the last year period.
"During Q3, our Fresh business continued to perform well driven by our differentiated portfolio strategy of having presence in all three bird sizes and strong relationships with key customers. Retail demand for our birds remained robust despite concerns about greater availability of other competing proteins. Within exports, volumes are also improving from a year ago, which improves value for the back half of the bird, and supportive of the overall cutout," stated Bill Lovette, chief executive officer of Pilgrims.
Operating cash flow drops significantlyPilgrims Pride Corp has generated cash of $531.11 million from operating activities during the nine month period, down 37.98 percent or $325.20 million, when compared with the last year period. The company has spent $163.12 million cash to meet investing activities during the nine month period as against cash outgo of $489.83 million in the last year period.
The company has spent $721.63 million cash to carry out financing activities during the nine month period as against cash outgo of $545.91 million in the last year period.
Cash and cash equivalents stood at $85.99 million as on Sep. 25, 2016, down 78.32 percent or $310.72 million from $396.72 million on Sep. 27, 2015.
Working capital drops significantly
Pilgrims Pride Corp has witnessed a decline in the working capital over the last year. It stood at $525.57 million as at Sep. 25, 2016, down 38.18 percent or $324.53 million from $850.10 million on Sep. 27, 2015. Current ratio was at 1.62 as on Sep. 25, 2016, down from 1.94 on Sep. 27, 2015.
Cash conversion cycle (CCC) has decreased to 14 days for the quarter from 33 days for the last year period. Days sales outstanding went up to 18 days for the quarter compared with 17 days for the same period last year.
Days inventory outstanding has decreased to 20 days for the quarter compared with 41 days for the previous year period. At the same time, days payable outstanding was almost stable at 24 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of Pilgrims Pride Corp remained almost stable for the quarter at $1,004.93 million, when compared with the last year period. Total debt was 33.47 percent of total assets as on Sep. 25, 2016, compared with 30.11 percent on Sep. 27, 2015. Debt to equity ratio was at 1.10 as on Sep. 25, 2016, up from 0.81 as on Sep. 27, 2015. Interest coverage ratio deteriorated to 13.70 for the quarter from 22.01 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
