필그림스 프라이드(PPC) 2026년 3분기 실적 콘퍼런스 콜: 가공식품 성장 속 EBITDA 하락

핵심 요약

• 필그림스 프라이드는 2026년 3분기 순매출이 전년 동기 47억 6,000만 달러에서 46억 5,000만 달러로 감소했다고 발표했다. 조정 EBITDA는 6억 3,310만 달러에서 3억 1,630만 달러로 감소했으며, 마진율은 13.3%에서 6.8%로 하락했다.
• 미국 법인의 조정 EBITDA는 4억 7,910만 달러에서 1억 8,520만 달러로 감소했다. 수율 개선과 생계 생산 실적 호조에도 불구하고 상품용 육계 가격 하락과 곡물가 상승이 악영향을 미쳤다.
• 가공식품 부문은 핵심 성장 분야로 유지되었다. 미국 판매량은 전년 동기 대비 15% 이상 증가했고, 수익성은 거의 두 배로 늘었으며, 브랜드 리테일 판매량은 20% 이상 증가했다.
• 유럽 법인은 전년 동기 1억 1,040만 달러에서 감소한 1억 200만 달러의 조정 EBITDA를 기록했다. 가금류와 간편식 실적은 호조를 보였으나, 돈육 마진, 생산비용, 외식 수요 약세가 계속 부담으로 작용했다.
• 멕시코 법인 매출은 판매량 증가에 힘입어 13% 증가했으나, 조정 EBITDA는 4,370만 달러에서 2,910만 달러로 감소했다. 신선 브랜드 리테일 판매량은 40% 이상 증가했다.
• 경영진은 2026년 연간 설비투자(CAPEX)를 약 8억 7,500만 달러, 실효세율을 26% 안팎, 연간 순이자비용을 연초 이후 발생한 조기 부채 상환 손실을 제외하고 약 1억 3,000만 달러로 예상하고 있다.

주요 재무 데이터

필그림스 프라이드는 21억 달러가 넘는 현금 및 이용 가능한 신용 한도로 이번 분기를 마감했다. 순부채는 25억 달러 미만이었으며, 레버리지는 지난 12개월 조정 EBITDA 대비 1.76배로 경영진의 목표 범위인 2~3배를 하회했다.

사업 및 운영 실적

미국

미국 매출은 주로 상품용 육계 가격 하락과 자체 생산 계육의 가공식품 부문 배분 증가로 인해 전년 동기 대비 5.5% 감소했다. 공장 수율 개선, 생계 사육 운영, 제품 믹스 개선 등은 이러한 압박을 일부 상쇄하는 데 그쳤다.

가공식품 판매량은 15% 이상 증가했으며, 수익성은 2025년 3분기 대비 거의 두 배로 늘어났다. 브랜드 리테일 판매량은 20% 이상 증가했고, 저스트 베어(Just BARE)는 냉동 완조리 카테고리에서 리테일 매출 점유율을 300bp 이상 확대했다. 브랜드 외식용 매출은 12% 이상 증가했다.

조지아주 엘리제이 공장 증설이 이번 분기 중에 완료되어 고부가가치 소형 순살 계육 생산을 지원하게 되었다. 조지아주 워커 카운티 가공식품 공장 건설은 예정대로 진행되었다.

경영진은 미국 농무부(USDA) 데이터를 인용해 미국의 조리용 계육 생산량이 전년 동기 대비 2.2% 증가한 반면, 전체 냉동 재고는 5% 감소했다고 밝혔다. 리테일 계육 판매량은 1.4%, 델리 계육 판매량은 1.6%, 외식용 계육 판매량은 0.8% 증가했다.

유럽

안정적인 가금류 수요와 간편식 부문의 두 자릿수 매출 및 판매량 성장이 유럽 사업을 뒷받침했다. 프리지 레이더스(Fridge Raiders)와 롤오버(Rollover) 판매량 역시 증가했다.

이러한 성장세는 소세지 실적 약세, 영국으로의 저가 수입 돈육 증가, 중동 분쟁과 연계된 생산비용 상승, 외식 수요 감소 등으로 일부 상쇄되었다. 필그림스 프라이드는 거래 완료 조건에 따라 워커스 델리 앤 소시지(Walkers Deli & Sausage) 인수 거래가 2027년 초에 마무리될 것으로 예상하고 있다.

멕시코

멕시코 매출은 시장 가격 하락에도 불구하고 판매량 증가 효과가 더 크게 작용하여 전년 동기 대비 13% 증가했다. 신선 브랜드 리테일 판매량은 40% 이상 증가했으며, 저스트 베어 판매량은 두 배 이상 늘어났다.

이번 분기 하반기, 특히 9월 들어 수급 여건이 개선되었다. 그러나 사육 환경 개선에 따른 공급 증가, 생계 시장 압박, 대체 단백질의 풍부한 공급 등으로 인해 수익성은 전년 동기 수준을 밑돌았다.

경영진 가이던스

• 경영진은 연간 실효세율이 약 26%가 될 것으로 예상하고 있다.
• 연간 순이자비용은 연초 이후 발생한 1,630만 달러 규모의 조기 부채 상환 손실을 제외하고 약 1억 3,000만 달러에 달할 것으로 예상된다.
• 연간 설비투자는 총 약 8억 7,500만 달러에 달할 것으로 예상된다.
• 워커 카운티 가공식품 공장의 시운전은 2027년 하반기 초로 예정되어 있다.
• 경영진은 2027년 미국의 계육 생산량 증가율이 1.2%로 둔화되는 반면, 전체 순육류 공급량은 0.6% 증가할 것이라는 USDA 전망을 인용했다.

리스크 및 주시 영역

• 이번 분기 동안 미국의 계육 공급이 수요보다 빠르게 증가하면서 상품 가격과 신선육 사업의 수익성에 부담을 주었다.
• 곡물 가격이 미국 마진을 압박했다. 경영진은 대두박 가격이 미국의 대중국 수출, 세계 시장 점유율, 남미 날씨 변화에 여전히 민감하게 반응하고 있다고 밝혔다.
• 유럽 마진은 생산비용 상승, 수입 돈육과의 경쟁, 외식 수요 약세에 직면해 있다.
• 멕시코는 저가 단백질과의 경쟁, 브라질산 수입 가금류 무역 차질을 둘러싼 불확실성에 계속 직면해 있다.
• 중동 지역의 변동성으로 인해 물류 복잡성과 비용이 증가했으나, 경영진은 대체 항구 및 복합 수송 경로를 통한 무역이 지속되고 있다고 밝혔다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good morning, and welcome to the Third Quarter of 2026 Pilgrim's Pride Earnings Conference Call and webcast. [Operator Instructions] At the company's request, this call is being recorded. Please note that the slides referenced during today's call are available for download from the Investors section of the company's website at www.pilgrims.com. I would now like to turn the conference over to Andrew Rojeski, Head of Strategy, Investor Relations and Sustainability for Pilgrim's Pride.

Andrew Rojeski

Good morning, and thank you for joining us today as we review our operating and financial results for the third quarter ended on September 27, 2026. Yesterday afternoon, we issued a press release providing an overview of our financial performance for the quarter, including a reconciliation of any non-GAAP measures we may discuss. A copy of the release is available on our website at ir.pilgrims.com, along with slides for reference. These items have also been filed as Form 8-Ks and are available online at sec.gov.

Fabio Sandri, President and Chief Executive Officer; and Matt Galvanoni, Chief Financial Officer, will present on today's call. Before we begin our prepared remarks, I would like to remind everyone of our safe harbor disclaimer. Today's call may contain certain forward-looking statements that represent our outlook and current expectations as of the date of the release. Other additional factors not anticipated by management may cause actual results to differ materially from those projected in these forward-looking statements. Further information concerning these factors have been provided in yesterday's press release, our Form 10-K and our regular filings with the SEC. I would now like to turn the call over to Fabio Sandri.

Fabio Sandri

Thank you, Andy. Good morning, everyone, and thank you for joining us today. For the third quarter of 2026, we reported net revenues of $4.7 billion with adjusted EBITDA of $316 million. Our adjusted EBITDA margin was 6.8%. Throughout the quarter, volume remained steady compared to last year as the affordability of chicken continued to resonate among consumers throughout all regions. In the U.S., volume was consistent with last year, even after two consecutive years of near records and impacts of our plant mix and efficiency investments.

Our diversified portfolio mitigated the impact of uneven market fundamentals as supply rose faster than demand across retail and foodservice. We continue to drive investments to foster a more resilient business and align with market needs. To that end, we completed our expansion at our plant in Ellijay, Georgia, further supporting key customer growth in the higher-value, fastest-growing small boneless chicken category.

Operational excellence also strengthened as both live production and yield efficiencies improved compared to previous quarter. Diversification efforts through Prepared Foods continued its momentum as volumes rose double digits and the construction of our new plant continued to progress as planned.

In Europe, volume remained stable as consumers sought value, benefiting the chicken and meals offerings within our diversified portfolio. Our innovation efforts are becoming increasingly recognized through additional distribution among leading retailers and supplier awards. Operational excellence initiatives continue to exceed targets. Mexico sales rose given continued momentum on fresh branded offerings within retail. Despite continually improved growing conditions, supply and demand fundamentals in the live commodity market improved, enhancing margins compared to previous quarter. Expansion projects to grow and diversify our portfolio also continued to progress as planned.

Turning to supply in the U.S. The USDA reported ready-to-cook production rose 2.2% compared to the same period last year. Production peaked with a 4.7% growth in July and subsequently reduced its pace throughout the quarter. The increase was primarily driven by higher egg sets as hatchability, livability and weights were at the same levels similar to last year. The market continues to absorb additional supply as total freezer inventories fell 5% compared to last year. Boneless breast fell nearly 8%. Availability of beef rose during the quarter, whereas pork continued to be relatively stable.

When combined with chicken and turkey production, overall protein availability increased by 1.5% compared to Q3 of last year. The USDA anticipates chicken production to increase 3.3% for the full year versus 2025. As for other proteins, beef is expected to decline by 0.3%, while pork is estimated to rise by 0.1%. Taken together, the USDA forecasts that overall net meat availability is expected to grow by 1.8% in 2026 versus last year. For 2027, USDA anticipates chicken growth to decelerate as production is projected to increase only 1.2% for the year. Beef availability is expected to decline 1%, while pork is projected to increase 0.8%. As a result, the USDA estimates growth of net meat availability of only 0.6% for 2027.

As for demand within the U.S., chicken continued to grow across retail and foodservice, even with near record volumes over the past few years. Within retail, the meat and deli departments continue to be the most resilient as volumes rose compared to last year, whereas the total edibles fell. Chicken retail volumes, including fresh and frozen, grew by 1.4% from last year. While the overall fresh category at retail grew only 0.2%, boneless breast grew more than 2% year-over-year and boneless dark meat grew by close to 10%, compensating lower volumes of bone-in products. As retailers passed through lower wholesale pricing of chicken and started increasing promotions, overall sales dollars fell.

In deli, demand continues to be strong across ready-to-eat chicken offerings as all major formats grew, increasing volumes 1.6% year-over-year. Rotisserie logs and cutup portion volumes also rose compared to last year. Appetizers, including popcorn chicken and links, led all categories in growth. Frozen prepared chicken also grew consistently with the overall category as volumes rose 1.4% compared to last year as convenient meal options continue to resonate among consumers.

In foodservice, chicken volumes increased 0.8% despite mixed industry traffic trends. Higher income consumers supported restaurant spending, whereas low-income consumers became increasingly focused on value amid ongoing budget pressures.

Given this environment, chicken growth was concentrated in QSRs and convenience channels, including C-stores, where a combination of affordability and expensive prepared food offerings drove traffic and demand. We anticipate promotional activity for bone-in products, especially wings to reinvigorate sales volumes. In exports, global demand for chicken remains strong, resulting in three consecutive months of year-over-year growth. Equally important, our volumes growth outpaced the channel from our increased presence in several key markets.

While the Middle East remains volatile, trade to Gulf Coast countries continues to flow through alternative ocean ports along with more complex intermodal routes. Trade within this region in recent months has surpassed pre-conflict levels and now only marginally lower year-over-year.

In Asia, recent meetings between government officials from the U.S. and China continue to progress as China has released more states from its avian influenza ban, unlocking further growth opportunities for U.S. raw frozen chicken versus last year. Industry inventories remain relatively lower compared to historical levels, supporting further growth and supportive values.

Turning to feed inputs. Significant volatility occurred throughout the quarter. In corn, futures initially moved higher in the quarter, given concerns regarding U.S. corn yields, continued disruptions in grain shipments from the Black Sea and a potential return by China to the global market.

However, futures retreated from mid-September highs as previous year ending stocks were higher than anticipated, crop yields exceeded prior estimates and exports lagged earlier expectations. The USDA's most recent corn forecast indicate comfortable inventory levels as the stock-to-use ratio is estimated at 11.3% for the upcoming crop year, limiting upside risk in the near term.

In soy, new futures temporarily rallied late in the quarter, given strong U.S. exports and interruptions in crush operations from delay in soybean harvest. USDA currently expect record yields in the U.S. to offset record crush demand and improve export shipments, leaving stocks unchanged compared to prior year.

Moving forward, soybean meal pricing will be sensitive to size and pace of U.S. export sales, especially to China. In addition, the ability of the U.S. to secure a large share of the global soybean meal export market and weather in South America will also play a significant role. In wheat, the market is managing the balance between record highs of initial stocks against export challenges from the Black Sea. To date, better-than-expected crops in Canada, Australia and Argentina, along with improved local production in major wheat importing countries have mitigated supply chain disruptions.

In the U.K., the wheat crop finished at a lower-than-expected level and yet it is still virtually flat compared to last year. Planting has already begun for next season's wheat crop under generally favorable conditions, improving prospects for the harvest in the summer of 2027.

In the U.S., fresh business volumes remained steady compared to previous quarter from increased distribution and key customer promotional support. We made progress in operational efficiencies from recent plant upgrades, improving live operations and enhanced mix given our recent Russellville conversion. When combined, these efforts partially compensated for the declines in commodity cutout values and planned downtime for the investment in Ellijay. Case-Ready maintained a solid presence in value-conscious environments throughout retail. To that end, we work closely with our key customers to drive promotional activity and unlock additional value for consumers. As a result, we reinvigorated growth throughout the quarter and enhanced momentum in October.

We also secured incremental distribution, further strengthening our sales pipeline for the remainder of the year. Small bird demand continued firm given continued support in the boneless category among key customers QSR. In big bird, we continue to enhance our mix through increased supply of higher attribute portioning offerings to prepared foods from our recent plant upgrades, further reducing our reliance on external supplier and unlocking additional margin for our business. We also increased the deboning of dark meat, supporting this growing market in the U.S.

In Prepared Foods, growth continues to accelerate as volume rose over 15% compared to last year. Our retail branded offerings led growth throughout the portfolio as volumes increased by over 20%. Just BARE continues to outpace all other brands in the frozen fully category as retail dollar share grew by over 300 basis points compared to the same period last year.

In Pilgrim's, we continue to drive innovation and bring excitement through new product developments and collaboration with industry leaders. To that end, Pilgrim's recently launched its Flaming Hot Chicken offering in select locations throughout retail and food service. To date, marketplace acceptance has been remarkably strong across consumers and customers alike. As a result, we secured incremental commitments across all channels to drive additional growth for the remainder of the year and beyond.

Our foodservice business has achieved similar success as sales outpaced the overall channel. The branded portfolio drove most of the growth as sales increased by over 12% compared to prior year. Moving forward, we will continue to expand our presence through innovation, key customer partnerships and promotional activity. Construction of our new facility in Walker County, Georgia continues to progress as planned with commissioning expected early in the second half of 2027.

In Europe, our portfolio continued to address affordability concerns of inflationary weary consumers. Poultry resonated among the value conscious, making it the fastest-growing category throughout retail. Moving forward, additional growth opportunity exists given our leading market position, attractive category dynamics and marketplace momentum. Based on the existing regulatory environment and our current supply chain capabilities, investments in additional broiler farms will be needed.

Within meals, our lineup exceeded category average as sales and volume both grew double digits through targeted promotions, investments with key customers. In our branded portfolio, volumes of Fridge Raiders and Rollover continue to grow. Additional growth opportunities exist for each throughout the remainder of the year from recently launched innovation and increased distribution.

Within sausage, intense promotional activity of premium private label offerings emerged given depressed raw material prices from imported meat. As a result, growth of our Richmond brand was challenged during the quarter. Nonetheless, we will continue to reinvigorate our offerings through continued investment in innovation, quality and brand building as we expand to different eating occasions. Foodservice continued to encounter tepid demand as visits declined across all major QSRs. To alleviate this challenge, we will continue to collaborate with leading providers to develop new offerings for value-conscious consumers. Sustained escalation of production costs, along with continued competition from imported pork impacted margins compared to last quarter.

Moving forward, continued reduction of the herd in U.K. should alleviate some of these pressures. In addition, pricing arrangements in selected aspects of our portfolio should partially mitigate the impact of rising costs. We are excited for the acquisition of Walkers Deli & Sausage and currently anticipate completion of the transaction in early 2027. Once completed, we can further integrate our value chain of high welfare pork into the premium sausage segment, strengthening our retail presence and further diversifying our portfolio.

Turning to Mexico. From a slow start, we experienced increasing strength during the quarter, especially in September. In the live commodity market, good growing conditions continue with improved livability and enhanced feed performance, but supply adjusted given extended challenges in producer economics, especially for small players. In fresh, our retail branded offerings led growth across the portfolio as volumes rose over 40% compared to last year through increased distribution and investments in sales execution.

Just BARE brand led all brands as volume more than doubled. In Prepared Foods, overall growth during the quarter was somewhat limited by continued availability of multiple proteins at historically low prices. QSR traffic also fell as consumers increased move to food at home. Nonetheless, volumes of Pilgrim's and Alamesa brands both double digits compared to last year.

Moving forward, disruptions from imported meat from Brazil, given concern about poultry health may reduce overall meat availability or result in large trade from U.S. While full resolution of this matter remain uncertain, early performance of exports from U.S. in October has been promising. We continue our investments to drive sales growth, enhance margin and reduce volatility throughout our portfolio. To that end, we continue to invest in automation projects and growth of our Prepared Foods. Our ramp-up of previously announced investments in the South and Peninsula region also continues to be on track.

Earlier this week, we published our 2025 sustainability report, which highlights our progress on the environmental, social and governance matter most critical to our business. Throughout the past year, we continue to drive sustainability throughout all aspects of our strategy and business, reinforcing our stewardship on the environment and natural resources, creating a better future for our team members and the communities we serve. We have lowered our Scope 1 and 2 greenhouse emissions intensity at our facilities by over 20% since 2019. We also improved our global safety index by over 60% compared to last year and provided over 5 million hours of training in 2025, enhancing team member well-being.

We continue to invest in team member development. To that end, we continue to drive efforts to create the largest free college tuition program in rural America through our Better Futures program. Remarkable enthusiasm continues as 220 team members or their dependents have enrolled in tuition-free higher education programs in 2025 alone. Since inception in 2021, over 2,485 have applied to this program.

With that, I'd like to ask our CFO, Matt Galvanoni, to discuss our financial results.

Matthew Galvanoni

Thank you, Fabio. Good morning, everyone. For the third quarter of 2026, net revenues were $4.65 billion versus $4.76 billion a year ago, with adjusted EBITDA of $316.3 million and a margin of 6.8% compared to $633.1 million and a 13.3% margin in Q3 last year. Relative to net revenues, we experienced a year-over-year decline of 5.5% in the U.S. in the quarter, driven by lower year-over-year commodity market pricing and the impacts of further supporting our U.S. Prepared Foods business with more internal raw material chicken supply following the investments we completed in the first half of this year.

Mexico's revenues were up 13% year-over-year due to an increase in sales volume, partially offset by decreases in market pricing. In Europe, year-over-year net revenues declined by 1%. Adjusted EBITDA margins in Q3 were 6.9% in the U.S. compared to 16.9% a year ago. For our European business, adjusted EBITDA margins came in at 7.4% for Q3 compared to 7.9% last year. In Mexico, adjusted EBITDA margins in Q3 were 4.9% versus 8.2% a year ago. Moving to the U.S. Our adjusted EBITDA for Q3 came in at $185.2 million compared to $479.1 million a year ago.

In our Fresh business, improved yields and live operations performance could only partially offset year-over-year declines in U.S. commodity chicken market pricing and higher grain costs. Prepared Foods continued its momentum with year-over-year sales volume growth over 15% and nearly doubling its profitability from Q3 2025. In Europe, adjusted EBITDA in Q3 was $102 million versus $110.4 million last year. The segment benefited from strength in poultry business and in our meals offerings during the quarter. These improvements helped compensate for pressured pork margins due to higher European imports in the U.K., increased costs driven by the Middle East conflict and decreases in foodservice traffic.

Mexico generated $29.1 million in adjusted EBITDA in Q3 compared to $43.7 million last year. As Fabio mentioned earlier, we saw improvements in the Mexico supply-demand fundamentals in the second half of the third quarter. However, the business' comparable year-over-year results for the quarter were impacted by bird growing conditions, increasing supply in the live markets and widely available competing proteins. Relative to our SG&A costs, we incurred lower year-over-year legal settlement-related and incentive compensation costs, partially offset by higher external legal defense expenses. Our effective tax rate for the quarter was 27.4% with our year-to-date rate at 26.4%.

Based on the geographical mix of our pretax earnings, we now expect our full year rate to approximate 26%. Following the completion of our EUR 500 million bond offering in September, we had over $2.1 billion in total cash and available credit at the end of the quarter. We have no short-term immediate cash requirements with our bonds maturing between 2031 and 2034 and our U.S. credit facility not expiring until 2028. Our liquidity position provides us flexibility during times of volatility in the U.S. commodity markets and allows us to pursue our growth strategy, including organic growth to meet our customers' needs.

We have a strong balance sheet, and we continue to emphasize cash flows from operating activities, management of working capital and disciplined investment in high-return projects. Even with challenging market conditions, our net debt totaled less than $2.5 billion with a leverage ratio of 1.76x our last 12 months adjusted EBITDA, below our target of 2 to 3x. Net interest expense for the quarter totaled $30.2 million, which includes a $1.2 million gain on the early extinguishment of debt. When excluding the year-to-date $16.3 million loss on the early extinguishment of debt, we anticipate our full year net interest expense to be approximately $130 million.

We spent $217 million in CapEx this quarter, an increase of $35 million over the third quarter of 2025. The CapEx spending this quarter included progress on our new prepared foods plant in Walker County, Georgia and the investment in Ellijay, Georgia to enhance our mix in support of key customers in the foodservice space. We estimate our full year CapEx spend to approximate $875 million. These and other growth projects align to our overall strategies of portfolio diversification, focus on key customers, operational excellence and our commitment to team member health and safety.

I will now turn the call back over to Fabio for closing remarks.

Fabio Sandri

Thank you, everyone, for attending today's call. Throughout the quarter, the affordability of chicken continued to resonate among value-conscious consumers across all regions. Given this environment, we continue to work closely with key customers to cultivate demand through promotional support, invest in consumer-led innovation and improve production efficiency throughout operational excellence. We continue to make progress in our investments to foster a more resilient portfolio as we completed the transition of at Ellijay and the construction of Walker County remains on schedule.

Moving forward, we'll maintain our focus on having the best team with an unwavering commitment to quality, service and sustainability. Based on these efforts, we can further nurture our legacy and achieve our vision to be the best and most respected company in our industry, creating the opportunity of a better future for our team members.

Operator

As the company will not be taking questions today, the conference has now concluded. We thank you for attending today's presentation. You may now disconnect your lines.