PPC Q1 Earnings Beat Estimates, U.S. Operations Drive Sales Growth

Pilgrim’s Pride Corporation PPC reported first-quarter 2025 results, with both top and bottom lines increasing from the year-ago quarter. Also, the company’s earnings surpassed the Zacks Consensus Estimate. PPC benefited from its portfolio diversification strategies, operational excellence, branded offerings and key customer partnerships.

PPC’s Q1 Results in Detail

Pilgrim's Pride reported adjusted earnings of $1.31 per share, surpassing the Zacks Consensus Estimate of $1.26. Also, the figure increased from adjusted earnings of 77 cents per share in the year-ago quarter. On a GAAP basis, earnings were $1.24 per share, up from 73 cents in the year-ago period. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Pilgrim's Pride Corporation Price, Consensus and EPS Surprise

Pilgrim's Pride Corporation price-consensus-eps-surprise-chart | Pilgrim's Pride Corporation Quote

The producer, marketer and distributor of fresh, frozen and value-added chicken and pork products generated net sales of $4,463 million, which increased 2.3% from the year-ago quarter.

Pilgrim's Pride’s cost of sales was $3,908.1 million, which decreased from $3,978 million reported in the year-ago quarter. Gross profit jumped year over year to $554.9 million from $383.9 million.

The company reported an adjusted EBITDA of $533.2 million, up from $371.9 million in the year-ago quarter. The adjusted EBITDA margin expanded 350 bps year over year to 12% in the quarter under review. 

The operating income was $404.5 million, a year-over-year increase from $250.3 million.

PPC’s Segment Analysis

Net sales in the U.S. operations were $2,743.2 million, up from $2,579.3 million in the year-ago quarter. Management noted year-over-year gains in both sales and profitability. The U.S. Fresh segment benefited from continued seasonal strength in commodity prices and enhanced production efficiencies, particularly in Big Bird. 

Meanwhile, Case Ready and Small Bird segments saw volume growth driven by expanded distribution with key customers across retail, deli and quick-service restaurants. The Prepared Foods segment accelerated its expansion of value-added products across both retail and foodservice channels.

Net sales from Europe operations declined to $1,231.5 million in the quarter under review from $1,267.9 million in the prior year. However, the region continues to show positive momentum, supported by ongoing optimization, new product development and branded portfolio growth. Europe achieved an adjusted EBITDA margin milestone of 8.1% for the quarter, an improvement of more than 150 basis points year over year. Overall demand remained stable as the portfolio continued shifting toward an enhanced mix. Notably, branded offerings showed strong momentum, with Richmond and Fridge Raiders volumes outpacing category growth.

Mexico operations generated net sales of $488.3 million in the reported quarter, down from $514.7 million in the prior-year quarter. Despite the decline, the region improved profitability through stronger partnerships with key customers in Fresh, favorable commodity pricing and growth in value-added offerings across both retail and foodservice. Expansion efforts in live operations and Prepared Foods are progressing as planned, with all key projects on schedule.

PPC’s Financial Health Snapshot

The company ended the quarter with cash and cash equivalents of $2,066.8 million, long-term debt (less current maturities) of $3,199.7 million and total shareholders’ equity of $3,147.4 million. The company provided $126.9 million in cash from operating activities for the three months ended March 30, 2025.

This Zacks Rank #3 (Hold) stock has gained 14.2% in the past three months compared with the industry’s 3.3% growth.

Three Food Stocks to Consider

United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1.9% and 485.7%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 408.7%, on average.

Utz Brands UTZ engages in the manufacture, marketing and distribution of snack foods in the United States and presently carries a Zacks Rank of 2. UTZ delivered a trailing four-quarter earnings surprise of 8.8%, on average.

The Zacks Consensus Estimate for Utz Brands’ current financial-year sales and earnings indicates growth of 1.4% and 10.4%, respectively, from the year-ago numbers.

Mondelez International, Inc. MDLZ manufactures, markets and sells snack food and beverage products in Latin America, North America, Asia, the Middle East, Africa, and Europe. It presently carries a Zacks Rank of 2. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.

The Zacks Consensus Estimate for Mondelez International’s current financial-year sales indicates growth of 3.7% from the year-ago numbers.

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