Pilgrim’s Pride posts loss after drop in Mexico sales

GREELEY — Pilgrim’s Pride Corp. (Nasdaq: PPC) posted a $6 million loss in the prior quarter after its operating margins in Mexico fell by 13%. The Greeley-based chicken producer posted revenues of $2.82 billion and a loss of 2 cents per share in the previous quarter against Wall Street consensus estimates of $2.93 billion and a gain of 12 cents per share, according to data from finance site Seeking Alpha. Pilgrim’s Pride blamed a “challenging macro environment” in Mexico for the drop-off in sales there, including a relatively weak Peso depressing sales margins. Income margins for the U.S. and European markets rose 2.2% and 3.1%, respectively, despite the various COVID-19 shutdowns affecting restaurant sales. The quarter was particularly volatile for the company after CEO Jayson Penn was indicted by a federal grand jury on price-fixing charges as part of a larger U.S. Department of Justice investigation into anti-competitive practices in the poultry industry. Federal prosecutors allege Penn and three other industry executives conspired to lower their bids to restaurant suppliers and large-scale food processors between 2012 and 2017. Penn has since pleaded not guilty and took a leave of absence from the company to focus on legal defense. His trial is set to begin on Feb. 16 in Denver. Pilgrim’s Pride did not mention Penn in its earnings figures. Acting CEO Fabio Sandri is due to speak with analysts on Thursday. © 2020 BizWest Media LLC
Source: BizWest