Pilgrim’s Pride Corporation, one of the world's largest poultry producers, has posted a 24% year-on-year growth in sales, amounting to $3.83 billion, in the third quarter of its financial year.
Fabio Sandri, CEO of Pilgrim’s Pride, commented, "On the strength of our product portfolio, we performed well in the third quarter with adjusted EBITDA up substantially over the third quarter of 2020 and the more normalised results of third quarter 2019, despite the ongoing challenges brought on by the COVID-19 pandemic."
Adjusted EBITDA increased by 13.7% year-on-year during the quarter, to $346.9 million.
The Pilgrim's portfolio continued to perform well, as demand in the US continues its recovery, the company noted.
The group's foodservice business also saw improvement, with performance exceeding pre-pandemic levels, while retail volumes remained strong.
Sandri stated, “Labour shortages continue to be our most pressing issue. I’m extremely proud of the Pilgrim’s team members who work hard every day to ensure our customers and consumers receive the high-quality foods they expect from us.
"Staffing challenges, however, have hindered our ability to achieve the ideal product mix with efficient processes. We will continue to make adjustments on a plant by plant basis to improve staffing levels and optimise our mix."
In Mexico, the business continued to perform well and increase the sales of branded products, while following the normal seasonality of the business.
Pilgrim's combined European business was significantly impacted by inflationary cost pressures on inputs, utility, and freight costs and increasing labour shortages, along with lower pig pricing in the region.
Significant challenges remain for the group in Europe due to shortages of labour and truck drivers as EU workers left the UK following Brexit, the company added.
In September, the group closed on the acquisition of the Kerry Consumer Foods’ Meats and Meals business in the UK and Ireland.
The business will be known as Pilgrim’s Food Masters and will add differentiated, value added protein, and integrated prepared foods to the portfolio, anchored by leading brands.
"Overall, I am extremely pleased with our team members and the execution of our strategy, often under difficult circumstances. We are committed to being the best and most respected company in our industry, and we will continue to perform to the best of our ability to serve Key Customers," added Sandri.