Pilgrim's Pride Corporation has announced the appointment of Wesley and Joesley Batista, the largest shareholders of the company through their shareholding interest in JBS, to replace Wesley Batista Filho and Joanita Maestri Karoleski on the Pilgrim's Board of Directors. The decision was made by the JBS Nominating Committee and unanimously approved by the current board members.
According to the statement, Wesley and Joesley Batista bring decades of operational and management experience in the food industry and are globally recognized for their business acumen and ability to deliver long-term results, including their active participation in the performance turnaround at Pilgrim's post-bankruptcy.
In response to this change, the company's shares have experienced a marginal movement, increasing by 0.1% and currently trading at a price of $27.31.
Commenting on the new appointments, the Pilgrim's Board of Directors expressed their anticipation of the continued contributions of the new members to the success of the company.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $10,938 | $11,409 | $12,092 | $14,777 | $17,468 | $16,961 |
| Revenue Growth | n/a | 4.31% | 5.98% | 22.21% | 18.21% | -2.9% |
| Gross Margins | 8% | 9% | 7% | 9% | 10% | 5% |
| Operating Margins | 5% | 6% | 2% | 1% | 7% | 2% |
| Net Margins | 2% | 4% | 1% | 0% | 4% | 0% |
| Net Income (MM) | $248 | $456 | $95 | $31 | $746 | $32 |
| Net Interest Expense (MM) | $163 | $133 | $126 | $146 | $153 | $177 |
| Depreciation & Amort. (MM) | $274 | $287 | $337 | $381 | $403 | $410 |
| Earnings Per Share | $1.0 | $1.83 | $0.39 | $0.13 | $3.1 | $0.15 |
| EPS Growth | n/a | 83.0% | -78.69% | -66.67% | 2284.62% | -95.16% |
| Diluted Shares (MM) | 249 | 250 | 246 | 244 | 240 | 237 |
| Free Cash Flow (MM) | $143 | $318 | $369 | -$55 | $183 | -$298 |
| Capital Expenditures (MM) | $349 | $348 | $355 | $382 | $487 | $577 |
| Current Ratio | 1.72 | 1.58 | 1.5 | 1.38 | 1.51 | 1.75 |
| Total Debt (MM) | $4,648 | $4,552 | $4,511 | $6,382 | $6,333 | $3,701 |
| Net Debt / EBITDA | 5.6 | 4.39 | 6.8 | 10.06 | 3.76 | 4.18 |
Pilgrim's Pride suffers from slimmer gross margins than its peers, weak operating margins with a negative growth trend, and declining EPS growth. The firm's financial statements also exhibit positive cash flows and a highly leveraged balance sheet. On the other hand, the company benefits from rapidly growing revenues and increasing reinvestment in the business and a decent current ratio of 1.75.
