Pilgrim's Pride Corporation (NASDAQ:PPC) Q3 2018 Earnings Conference Call Transcript

Nov 01, 2018 • 09:00 am ET

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Pilgrim's Pride Corporation (NASDAQ:PPC) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and welcome to the third quarter 2018 Pilgrim's Pride Earnings Conference Call and Webcast. All participants will be in listen-only mode. (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 Investor Relations Section of the company's website at www.pilgrims.com. After today's presentation, there will be an opportunity to ask questions.

I would now like to turn the conference over to Dunham Winoto, Director of IR for Pilgrim's Pride. Please go ahead.

Executive
Dunham Winoto

Good morning and thank you for joining us today as we review our operating and financial results for the third quarter ended September 30, 2018. 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. The copy of the release is available in the Investor Relations Section of our website along with the slides we will reference during this call. These items have also been filed as 8-Ks and are available online at www.sec.gov. Presenting to you today are Bill Lovette, President and CEO and Fabio Sandri, CFO. Before we begin our prepared remarks, I'd like to remind everyone of our disclaimer.

(Forward-Looking Cautionary Statements)

I'd now like to turn the call over to Bill Lovette.

Executive
Bill Lovette

Thank you, Dunham, and good morning everyone. Thank you all for joining us today. For the third quarter of 2018, consolidated net revenues were $2.7 billion versus $2.79 billion from a year ago, resulting in an EBITDA of $156 million or 5.8% margin versus $464 million a year ago or 16.6% margin. Our net income was $29 million compared to $233 million in the same period in 2017, while adjusted earnings were $0.21 per share compared to $0.98 per share in the year before.

Our performance during Q3 is a testament to the breadth and diversity of our portfolio, which is structured to be more resilient compared to our peers by having a much more balanced performance across all market conditions while still giving us the opportunity to capture any upside. Despite a very challenging pricing environment in the US commodity chicken, a slowdown in Mexico and feed cost pressures in Europe, our team members have once again focused on our strategy and we are proud of their contribution. We are also continuing to leverage our key customer approach to drive further growth beyond just the underlying market conditions. Although we are proud of the progress we've made in terms of our relative performance over the last few quarters and years to the competition, we are not satisfied and are continually refining our portfolio strategy. We remain diligent and looking for growth opportunities and product differentiation both organically as well as through acquisitions to generate greater value while contributing to the evolution of our portfolio and supporting our vision to become the best and most respected company in our industry.

During Q3, we continued to experience challenging counter