PILGRIMS PRIDE CORP
For the period ended Jun 29, 2025. Filed Jul 31, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2025 · Filed Jul 31, 2025
PPC$28.53-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-30; filed 2025-05-01.
0000802481-25-000062
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-29; filed 2025-07-31.
0000802481-25-000110
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 72 previous paragraphs and 91 current paragraphs.
31 unchanged; 36 reworded; 20 added; 5 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 13 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
We are monitoring changes in tariffs and trade policies both in the U.S. and throughout other countries where we operate and do business. Changes to these policies may impact our export sales and international operations. Our U.S. business is primarily characterized with inputs being made in country and our products being sold in country, demonstrated by our export sales from the U.S. accounting for less than 3% of our total net sales. The impact of trade policy changes is uncertain and evolving; however, we do not anticipate material impacts to our results of operations. We will continue to monitor potential impacts and take mitigation actions as necessary.
Current report
Combined domestic volume demand growth in retail and foodservice was sufficient to absorb broiler production and maintain low levels of cold storage supply through April and May, supporting strong seasonal improvements in U.S. chicken market pricing. In June, however, supply began to outpace demand, leading to a notable reduction in breast meat market prices by the end of the quarter. Despite this shift, jumbo cutout pricing ended the quarter above the historical five-year average with jumbo cutout pricing leveling off in July.
Current report
In the second quarter of 2025, the U.K. chicken market grew by 2.1% year-over-year, primarily driven by a 3.7% increase in average bird weight. Imports from the E.U. were constrained due to avian influenza outbreaks, but increased volumes from Brazil and Ukraine helped offset the shortfall. Despite stable grain prices compared to the second quarter of 2024, chicken prices rose, driven by production capacity constraints and the implementation of a mandated reduction in stocking density to 30kg/m². The market remains tight, with limited domestic flexibility and continued reliance on diversified import sources to maintain supply stability.
Current report
U.K. market prices for pork products grew during the second quarter of 2025 from market pressure, especially the additional national insurance tax and wage increase; while the market for live pigs reduced circa 2.3% with an increasing price differential between U.K. and E.U. pork prices. E.U. pork prices recovered during the second quarter of 2025, primarily because of the reinstatement of Germany's foot and mouth disease-free status, which put more product into the market.
Current report
Results of Operations
Current report
U.S. Reportable Segment. U.S. net sales generated in the three months ended June 29, 2025 increased $156.4 million, or 5.9%, from U.S. net sales generated in the three months ended June 30, 2024 primarily due to an increase in net sales per pound of $125.5 million, or 4.7 percentage points, and an increase in sales volume of $30.9 million, or 1.2 percentage points. The increase in net sales per pound was driven primarily by favorable market pricing conditions and shift in product mix. The second quarter average commodity chicken market prices for higher value cuts were above prior year levels.
Current report
Mexico Reportable Segment. Mexico net sales generated in the three months ended June 29, 2025 decreased $28.1 million, or 4.7%, from Mexico net sales generated in the three months ended June 30, 2024 due to the unfavorable impact of foreign currency translation of $73.5 million, or 12.3 percentage points. This decrease was partially offset by an increase in net sales per pound and sales volume of $42.9 million, or 7.2 percentage points, and $2.5 million, or 0.4 percentage points, respectively. The increase in net sales per pound was driven by an increase in commodity chicken prices based on market requirements. The increase in sales volume was driven by shifts in product mix.
Current report
Europe Reportable Segment. Cost of sales incurred by our Europe operations during the three months ended June 29, 2025 increased $59.5 million, or 5.0%, from cost of sales incurred by our Europe segment during the three months ended June 30, 2024. The increase in cost of sales was primarily driven by the unfavorable impact of foreign currency translation and an increase in cost per pound sold of $67.5 million, or 5.7 percentage points, and $19.3 million, or 1.6 percentage points, respectively. Partially offsetting these increases was a decrease in sales volume of $27.3 million, or 2.3 percentage points. The increase in cost per pound sold was driven by increases in labor costs, both from higher national insurance costs and higher temporary labor, repairs and maintenance, and utilities costs.
Current report
Mexico Reportable Segment. Cost of sales incurred by our Mexico operations during thethree months ended June 29, 2025 decreased $4.6 million, or 1.0%, from cost of sales incurred by our Mexico segment during the three months ended June 30, 2024. This decrease was driven by the favorable impact of foreign currency translation of $60.3 million, or 12.9 percentage points. Partially offsetting this decrease were increases in cost per pound sold and sales volume of $53.7 million, or 11.5 percentage points, and $2.0 million, or 0.4 percentage points, respectively. The increase in cost was primarily driven by an increase in the cost of commodity ingredients, as well as increased costs from broiler health challenges in our live operations.
Current report
U.S. Reportable Segment. SG&A expense incurred by our U.S. reportable segment during the three months ended June 29, 2025 decreased $10.1 million, or 7.0%, from SG&A expense incurred by our U.S. reportable segment during the three months ended June 30, 2024. The decrease in SG&A expense resulted primarily from a net decrease in legal settlement expense.
Current report
Europe Reportable Segment. SG&A expense incurred by our Europe reportable segment during the three months ended June 29, 2025 decreased $3.0 million, or 5.6%, from SG&A expense incurred by our Europe segment during the three months ended June 30, 2024. The decrease in SG&A expense was primarily due to a decrease in payroll costs, partially offset by an unfavorable impact of foreign currency translation.
Current report
Mexico Reportable Segment. SG&A expense incurred by our Mexico reportable segment during the three months ended June 29, 2025 decreased $1.6 million, or 9.8%, from SG&A expense incurred by our Mexico segment during the three months ended June 30, 2024 primarily due to the favorable impact of foreign currency translation. This decrease was partially offset by an increase in payroll and incentive compensation costs.
Current report
Net interest expense. Net interest expense increased to $31.5 million recognized in the three months ended June 29, 2025 from $15.3 million recognized in the three months ended June 30, 2024. The increase in net interest expense resulted primarily from a prior year gain recognized on early extinguishment of debt and a decrease in interest income earned on excess cash due to lower cash balances in the current year. Partially offsetting these increases in net interest expense was a decrease in interest expense on outstanding borrowings due to the repurchases of outstanding debt.
Current report
Six Months Ended June 29, 2025 Compared to the Six Months Ended June 30, 2024
Current report
Net sales. Net sales generated in the six months ended June 29, 2025 increased $299.1 million, or 3.4%, from net sales generated in the six months ended June 30, 2024. The following table provides net sales information:
Current report
Europe Reportable Segment. Europe net sales generated inthe six months ended June 29, 2025 increased $33.4 million, or 1.3%, from Europe net sales generated in the six months ended June 30, 2024 primarily due to the favorable impact of foreign currency translation and an increase in net sales per pound of $61.5 million, or 2.4 percentage points, and $28.1 million, or 1.1 percentage points, respectively. The increase in net sales was partially offset by a decrease in sales volume of $56.2 million, or 2.2 percentage points. The increase in net sales per pound was primarily due to the pass through of higher input costs, such as feed, labor, and utilities.
Current report
U.S. Reportable Segment. Cost of sales incurred by our U.S. operations during the six months ended June 29, 2025 increased $133.0 million, or 2.9%, from cost of sales incurred by our U.S. segment during the six months ended June 30, 2024. The increase in cost of sales was primarily driven by an increase in sales volume and an increase in cost per pound sold of $68.9 million, or 1.5 percentage points, and $64.1 million, or 1.4 percentage points, respectively. The increase in sales volume was driven by consumer demand. The increase from prior year in cost per pound sold is primarily due to increased labor, fleet, grower pay, packaging, utilities, and other operating costs. These increases were partially offset by a decrease in live operations costs driven by declining feed ingredients costs, specifically soybean meal. Corn market prices increased approximately 5% from prior year levels and soybean meal market prices decreased approximately 17% from prior year levels.
Current report
Europe Reportable Segment. Cost of sales incurred by our Europe operations during the six months ended June 29, 2025 decreased $1.0 million, from cost of sales incurred by our Europe segment during the six months ended June 30, 2024. The decrease in cost of sales was primarily driven by decreases in sales volume and cost per pound sold of $51.7 million, or 2.2 percentage points, and $5.8 million, or 0.2 percentage points, respectively. Partially offsetting these decreases was the unfavorable impact of foreign currency translation of $56.5 million, or 2.4 percentage points.
Current report
Europe Reportable Segment. SG&A expense incurred by our Europe reportable segment during the six months ended June 29, 2025 increased $1.1 million, or 1.1%, from SG&A expense incurred by our Europe segment during the six months ended June 30, 2024. The increase in SG&A expense was primarily due to the unfavorable impact of foreign currency translation, partially offset by a decrease in payroll costs, professional fees, and insurance.
Current report
On July 30, 2025, the Company declared a special dividend of $2.10 per share, to stockholders of record as of August 20, 2025. The Company will fund the special cash dividend using cash on hand. The special cash dividend is payable on September 3, 2025 for an approximate amount of $500.0 million.
Removed paragraphs (5)
Previous report
During the first quarter of 2025, the U.K. chicken market volume was higher than in the same quarter of the prior year. U.K. imports of European chicken are increasing slightly from strong consumer demand in the U.K., though Europe market prices have increased due to strong consumer demand in the European market. In the U.K., prices were more stable due to stable grain prices in Q1 2025 compared to Q1 2024, despite some production constraints from switching to higher welfare birds.
Previous report
U.K. market prices for pork products faced downward pressure throughout the first quarter of 2025 due to the price differential between U.K. and E.U. pork prices. E.U. pork prices fell this period, primarily because of a foot and mouth disease outbreak in Germany, which limited exports. To compensate, non-German pork products saw an increase.
Previous report
Additionally, U.K. prices for pork finished products and prepared foods increased during the first quarter of 2025 due to inflationary pressures, primarily from higher feed prices, regulatory changes, and increased labor costs.
Previous report
Europe Reportable Segment. Cost of sales incurred by our Europe operations during the three months ended March 30, 2025 decreased $60.5 million, or 5.1%, from cost of sales incurred by our Europe segment during the three months ended March 31, 2024. The decrease in cost of sales was primarily driven by a decrease in cost per pound sold, sales volume, and the favorable impact of foreign currency translation of $27.7 million, or 2.3 percentage points, $24.3 million, or 2.1 percentage points, and $8.5 million, or 0.7 percentage points, respectively. The decrease in cost per pound sold was driven by lower labor costs, feed ingredients, labor, utilities and other operating costs, some of which was driven by the recent restructuring initiatives throughout the Europe reportable segment. The decrease in sales volume was primarily across the retail channel, though was partially offset by increases in the foodservice channel.
Previous report
Europe Reportable Segment. SG&A expense incurred by our Europe reportable segment during the three months ended March 30, 2025 increased $4.1 million, or 8.9%, from SG&A expense incurred by our Europe segment during the three months ended March 31, 2024. The increase in SG&A expense was primarily due to increases in incentive compensation costs and software license fees.
Reworded paragraphs (36)
Previous wording
Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. We reported net income attributable to Pilgrim’s of $296.0 million, or $1.24 per diluted common share, and income before tax totaling $390.4 million, for the three months ended March 30, 2025. These operating results included net sales of $4.5 billion, gross profit of $554.9 million and $126.9 million of cash provided by operating activities. We generated a consolidated operating margin of 9.1%. For the three months ended March 30, 2025, we generated EBITDA and Adjusted EBITDA of $511.7 million and $533.2 million, respectively. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below.
Current wording
Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. We reported net income attributable to Pilgrim’s of $651.6 million, or $2.73 per diluted common share, and income before tax totaling $866.0 million, for the six months ended June 29, 2025. These operating results included net sales of $9.2 billion, gross profit of $1.3 billion and $622.1 million of cash provided by operating activities. We generated a consolidated operating margin of 9.9%. For the six months ended June 29, 2025, we generated EBITDA and Adjusted EBITDA of $1.1 billion and $1.2 billion, respectively. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below.
Previous wording
During the first quarter of 2025, global inflation levels declined though projections for the remainder of 2025 vary due to elevated policy uncertainty. U.S. inflation decreased during the first quarter of 2025 driven primarily by lower gasoline prices. The U.K. and E.U. region saw a continued decrease in inflation rate, however the U.K. labor cost index rose during the first quarter of 2025. The Russia-Ukraine war's impact on the global feed ingredient and energy markets is currently less pronounced though there remain many risks and uncertainties that may impact global markets. In Mexico, inflation increased slightly during the first quarter of 2025 partially driven by increased food prices. The peso weakened slightly against the U.S. dollar when comparing the end of first quarter of 2025 to the end of 2024.
Current wording
Our business is subject to global inflationary trends. U.S. inflation rose slightly during the second quarter of 2025 driven by policy changes, supply chain dynamics, and consumer spending behavior. The U.K. saw an increase in inflation during the second quarter of 2025 due to higher energy costs and increase in wages, while the E.U. region saw a continued decrease in the inflation rate. The Russia-Ukraine war's impact on the global feed ingredient and energy markets continues to be less pronounced than during the initial onset of the war, but there remain many risks and uncertainties that may impact global markets. In Mexico, inflation continued to increase during the second quarter of 2025 partially driven by increased food prices. The peso strengthened against the U.S. dollar during the second quarter of 2025, although future trends will be impacted by economic uncertainties in Mexico and with their primary trading partners, such as the U.S.
Previous wording
We have responded to these challenges by continuing negotiations with customers to mitigate the impact of extraordinary costs we have experienced. We also continue to focus on operational initiatives that aim to deliver labor efficiencies, better agricultural performance and improved yields.
Current wording
We generally respond to these challenges in global economic conditions through discussions with customers to mitigate the impact of extraordinary costs we experience. We also continue to focus on operational initiatives that aim to deliver labor efficiencies, better agricultural performance and improved yields.
Previous wording
U.S. commodity market prices for chicken products trended above the historical five-year average and above the prior year average through first quarter, primarily driven by rapid increases in boneless breast pricing that greatly exceeded normal seasonal movements. Per the April 2025 U.S. Department of Agriculture (or “USDA”) report on poultry slaughter, estimated industry ready-to-cook production during the first quarter of 2025 was 1.1% above prior year levels primarily due to heavier average liveweights.
Current wording
U.S. commodity market prices for chicken products continued to trend above the historical five-year average and above the prior year average through the second quarter of 2025. The higher than average prices was primarily driven by elevated boneless breast pricing that exceeded normal seasonal movements throughout the quarter. Prices rose sharply in April, stabilized and peaked in May, then experienced a significant decline in June. Per the June 2025 U.S. Department of Agriculture (or “USDA”) report on poultry slaughter, estimated industry ready-to-cook production during the second quarter of 2025 decreased by 0.2% compared to prior year levels, primarily due to one additional business day in May 2024 and heavier average liveweights.
Previous wording
During the first quarter of 2025, the U.S. chicken market experienced firm volume demand, supported by growth in the retail distribution channel and steady foodservice channel demand. The total domestic demand growth continued to outpace supply. Export volume in shipments were lower than the five-year historical average for the first quarter of 2025, though demand continues to support stable pricing for export product types. Chicken cold storage inventories ended the quarter 3.1% above prior year levels and 3% below the historical five-year average.
Current wording
During the second quarter of 2025, the U.S. chicken market experienced firm volume demand, supported by growth in the retail and foodservice channels early in the quarter. Retail demand remained resilient throughout the quarter, while foodservice demand exhibited growth despite mild demand pressure near the end of the quarter. Export volume shipments declined about 1.8% from prior year levels, but pricing remained stable on resilient demand. Considering the strength in domestic demand and steady exports, cold storage inventories remained low during the second quarter. Chicken cold storage inventories ended May 1.0% above prior year levels, though remained below the historical five-year average, primarily due to increases in breast meat and wing stocks.
Previous wording
Commodity prices for chicken in Mexico decreased during the first quarter of 2025, though were above the average prior year prices. Market corn prices in Mexico were higher than the same quarter in the prior year though lower than the historical five-year average price levels. Soybean meal prices in Mexico decreased throughout the first quarter of 2025, but ended the quarter higher than the prior year levels.
Current wording
Commodity prices for chicken in Mexico decreased during the second quarter of 2025, though were above the average prior year prices. Market corn prices in Mexico were higher than the same quarter in the prior year though remained lower than the historical five-year average price levels. Soybean meal prices in Mexico continued to decrease throughout the second quarter of 2025.
Previous wording
U.K. pig production rose by approximately 6.4% in the first quarter of 2025 compared to the same period last year, according to the U.K. Agriculture and Horticulture Development Board. This increase was mainly driven by a higher pig kill rate, with increased weights having a minor impact.
Current wording
U.K. pig production remained above prior-year levels by approximately 1.6% in the second quarter of 2025, according to the U.K. Agriculture and Horticulture Development Board. This increase was mainly driven by a higher pig kill rate, with average weights in line with prior year levels.
Previous wording
Global market prices for the remainder of the year will depend on (1) the evolution of foodservice, retail and export meat demand and (2) factors such as feed production input costs, further spread of avian influenza, or other bird diseases, both domestically and abroad, uncertainty surrounding the general economy and overall protein supply.
Current wording
Global market prices for the remainder of the year will depend on (1) the evolution of foodservice, retail and export meat demand, (2) factors such as feed production input costs, further spread of avian influenza, or other bird diseases, both domestically and abroad, (3) uncertainty surrounding the general economy, (4) shifts in trade policy that could influence consumer spending dynamics in price-sensitive market segments, and (5) overall protein supply.
Previous wording
Net sales. Net sales generated in the three months ended March 30, 2025 increased $101.1 million, or 2.3%, from net sales generated in the three months ended March 31, 2024. The following table provides net sales information:
Current wording
Net sales. Net sales generated in the three months ended June 29, 2025 increased $198.1 million, or 4.3%, from net sales generated in the three months ended June 30, 2024. The following table provides net sales information:
Previous wording
Europe Reportable Segment. Europe net sales generated inthe three months ended March 30, 2025 decreased $36.4 million, or 2.9%, from Europe net sales generated in the three months ended March 31, 2024 primarily due to a decrease in sales volume, the unfavorable impact of foreign currency translation, and net sales per pound of $26.2 million, or 2.1 percentage points, $9.2 million, or 0.7 percentage points, and $1.0 million, or 0.1 percentage points, respectively. The decrease in sales volume was primarily across the retail channel, though was partially offset by increases in the foodservice channel. The decrease in net sales per pound was primarily due to the structure of certain customer contracts impacted by lower input costs.
Current wording
Europe Reportable Segment. Europe net sales generated inthe three months ended June 29, 2025 increased $69.7 million, or 5.4%, from Europe net sales generated in the three months ended June 30, 2024 primarily due to the favorable impact of foreign currency translation and an increase in net sales per pound of $73.7 million, or 5.7 percentage points, and $25.9 million, or 2.0 percentage points, respectively. The increase in net sales was partially offset by a decrease in sales volume of $29.9 million, or 2.3 percentage points. The increase in net sales per pound was primarily due to the pass through of higher input costs, such as feed, labor, and utilities.
Previous wording
Gross profit and cost of sales. Gross profit increased by $171.0 million from $383.9 million generated in the three months ended March 31, 2024 to $554.9 million generated in the three months ended March 30, 2025. The following tables provide information regarding gross profit and cost of sales information:
Current wording
Gross profit and cost of sales. Gross profit increased by $23.7 million, or 3.4%, from $691.6 million generated in the three months ended June 30, 2024 to $715.3 million generated in the three months ended June 29, 2025. The following tables provide information regarding gross profit and cost of sales information:
Previous wording
U.S. Reportable Segment. Cost of sales incurred by our U.S. operations during the three months ended March 30, 2025 increased $13.5 million, or 0.6%, from cost of sales incurred by our U.S. segment during the three months ended March 31, 2024. The increase in cost of sales was primarily driven by an increase in sales volume of $43.6 million, or 1.9 percentage points, partially offset by a decrease in cost per pound sold of $30.1 million, or 1.3 percentage points. The increase in sales volume was driven by consumer demand. The decrease from prior year in cost per pound sold is primarily due to declining feed ingredients costs, specifically soybean meal which decreased approximately 25% from prior year levels.
Current wording
U.S. Reportable Segment. Cost of sales incurred by our U.S. operations during the three months ended June 29, 2025 increased $119.5 million, or 5.4%, from cost of sales incurred by our U.S. segment during the three months ended June 30, 2024. The increase in cost of sales was primarily driven by an increase in cost per pound sold of $93.8 million, or 4.2 percentage points and an increase in sales volume of $25.7 million, or 1.2 percentage points. The increase from prior year in cost per pound sold is primarily due to increased fleet, grower pay, labor, packaging, utilities, and other operating costs. These increases were partially offset by a decrease in live operations costs driven by declining feed ingredients costs, specifically soybean meal. Corn market prices increased approximately 9% from prior year levels and soybean meal market prices decreased approximately 16% from prior year levels.
Previous wording
Operating income and SG&A expense. Operating income increased by$154.2 million, or 61.6%, from income of$250.3 million generated in the three months ended March 31, 2024 to income of $404.5 million generated in the three months ended March 30, 2025. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Current wording
Operating income and SG&A expense. Operating income increased by $71.5 million, or 16.2%, from income of$440.8 million generated in the three months ended June 30, 2024 to income of $512.3 million generated in the three months ended June 29, 2025. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Previous wording
Income taxes. Income tax expense increased to $94.1 million, a 24.1% effective tax rate, for the three months ended March 30, 2025 compared to an income tax expense of $52.1 million, a 22.9% effective tax rate, for the three months ended March 31, 2024. The increase in income tax expense resulted primarily from the increase in profit before income taxes.
Current wording
Income taxes. Income tax expense increased to $119.6 million, a 25.1% effective tax rate, for the three months ended June 29, 2025 compared to an income tax expense of $100.7 million, a 23.6% effective tax rate, for the three months ended June 30, 2024. The increase in income tax expense in 2025 resulted primarily from the increase of profit before income taxes.
Previous wording
U.S. Reportable Segment. U.S. net sales generated in the three months ended March 30, 2025 increased $163.9 million, or 6.4%, from U.S. net sales generated in the three months ended March 31, 2024 primarily due to an increase in net sales per pound and an increase in sales volume of $115.8 million, or 4.5 percentage points, and $48.1 million, or 1.9 percentage points, respectively. The increase in net sales per pound was driven primarily by favorable market pricing conditions and shift in consumer demand to higher value products.
Current wording
U.S. Reportable Segment. U.S. net sales generated in the six months ended June 29, 2025 increased $320.3 million, or 6.1%, from U.S. net sales generated in the six months ended June 30, 2024 primarily due to an increase in net sales per pound and an increase in sales volume of $241.0 million, or 4.6 percentage points, and $79.3 million, or 1.5 percentage points, respectively. The increase in net sales per pound was driven primarily by favorable market pricing conditions and shift in consumer demand to higher value products.
Previous wording
Mexico Reportable Segment. Mexico net sales generated in the three months ended March 30, 2025 decreased $26.4 million, or 5.1%, from Mexico net sales generated in the three months ended March 31, 2024 primarily due to the unfavorable impact of foreign currency translation of $99.4 million, or 19.3 percentage points. The decrease in net sales was partially offset by increases in net sales per pound and sales volume of $71.0 million, or 13.8 percentage points, and $2.0 million, or 0.4 percentage points, respectively. The decrease due to the unfavorable impact of foreign currency translation was driven by a year-over-year depreciation of 20% in the Mexican peso against the U.S. dollar due to inflation in the Mexican economy, along with uncertainties impacting the exchange rate. The increase in price per pound sold was driven by an increase in commodity chicken pricing due to increased local consumer demand and lower supply due to bird disease.
Current wording
Mexico Reportable Segment. Mexico net sales generated in the six months ended June 29, 2025 decreased $54.5 million, or 4.9%, from Mexico net sales generated in the six months ended June 30, 2024 primarily due to the unfavorable impact of foreign currency translation of $175.4 million, or 15.8 percentage points. The decrease in net sales was partially offset by increases in net sales per pound and sales volume of $116.4 million, or 10.5 percentage points, and $4.5 million, or 0.4 percentage points, respectively. The decrease due to the unfavorable impact of foreign currency translation was driven by a year-over-year depreciation of 17% in the Mexican peso against the U.S. dollar due to inflation in the Mexican economy, along with uncertainties impacting the exchange rate. The increase in price per pound sold was driven by an increase in commodity chicken pricing due to increased local consumer demand and lower supply due to bird disease.
Previous wording
Mexico Reportable Segment. Costof sales incurred by our Mexico operations during thethree months ended March 30, 2025 decreased $22.9 million, or 5.0%, from cost of sales incurred by our Mexico segment during thethree months ended March 31, 2024.The decrease in cost of sales was driven by the favorable impact of foreign currency translation. As noted above, there was a year-over-year depreciation of 20% in the Mexican peso against the U.S. dollar. This decrease was partially offset by an increase in cost per pound sold and sales volume of $64.4 million, or 14.0 percentage points, and $1.8 million, or 0.4 percentage points, respectively. The increase in cost per pound sold was driven by an increase in year-over-year market prices of commodity ingredients, such as corn.
Current wording
Mexico Reportable Segment. Costof sales incurred by our Mexico operations during thesix months ended June 29, 2025 decreased $27.5 million, or 3.0%, from cost of sales incurred by our Mexico segment during thesix months ended June 30, 2024. The decrease in cost of sales was driven by the favorable impact of foreign currency translation of $150.0 million, or 16.2 percentage points. As noted above, there was a year-over-year depreciation of 17% in the Mexican peso against the U.S. dollar. This decrease was partially offset by an increase in cost per pound sold and sales volume of $118.7 million, or 12.8 percentage points, and $3.8 million, or 0.4 percentage points, respectively. The increase in cost per pound sold was driven by an increase in year-over-year market prices of commodity ingredients, such as corn which increased over 20%, while the average market price of soybean meal during the first half of 2025 was about 4% below prior year levels.
Previous wording
U.S. Reportable Segment. SG&A expense incurred by our U.S. reportable segment during the three months ended March 30, 2025 increased $10.9 million, or 18.9%, from SG&A expense incurred by our U.S. reportable segment during the three months ended March 31, 2024. The increase in SG&A expense resulted primarily from an increase in legal settlement expense, incentive compensation costs, and legal defense costs.
Current wording
U.S. Reportable Segment. SG&A expense incurred by our U.S. reportable segment during the six months ended June 29, 2025 increased $0.8 million, or 0.4%, from SG&A expense incurred by our U.S. reportable segment during the six months ended June 30, 2024. The increase in SG&A expense resulted primarily from an increase in incentive compensation and marketing costs, partially offset by a decrease in legal settlement expense.
Previous wording
Mexico Reportable Segment. SG&A expense incurred by our Mexico reportable segment during the three months ended March 30, 2025 decreased $0.4 million, or 2.5%, from SG&A expense incurred by our Mexico segment during the three months ended March 31, 2024. The primary driver of the decrease in SG&A expense was the favorable impact of foreign currency translation due to the year-over-year depreciation of the Mexican peso against the U.S. dollar. This decrease was partially offset by increases in payroll and marketing costs.
Current wording
Mexico Reportable Segment. SG&A expense incurred by our Mexico reportable segment during the six months ended June 29, 2025 decreased $2.0 million, or 6.4%, from SG&A expense incurred by our Mexico segment during the six months ended June 30, 2024. The primary driver of the decrease in SG&A expense was the favorable impact of foreign currency translation due to the year-over-year depreciation of the Mexican peso against the U.S. dollar. This decrease was partially offset by an increase in payroll and incentive compensation costs.
Previous wording
Restructuring activities. Restructuring activities costs of $16.6 million were recognized in the three months ended March 30, 2025. These charges were incurred by our Europe reportable segment primarily as a result of severance and warehouse closure costs.
Current wording
Restructuring activities. Restructuring activities costs of $20.1 million were recognized in the six months ended June 29, 2025. These charges were incurred by our Europe reportable segment primarily as a result of primarily severance related to back office consolidation and warehouse closure costs.
Previous wording
Net interest expense. Net interest expense decreased to $16.8 million recognized in the three months ended March 30, 2025 from $30.9 million recognized in the three months ended March 31, 2024. The decrease in net interest expense resulted primarily from an increase in interest income on higher cash balances.
Current wording
Net interest expense. Net interest expense increased to $48.2 million recognized in the six months ended June 29, 2025 from $46.2 million recognized in the six months ended June 30, 2024. The increase in net interest expense resulted primarily from a prior year gain recognized on early extinguishment of debt, partially offset by an increase in interest income earned on excess cash due to higher average cash balances in the six months ended June 29, 2025 compared to the six months ended June 30, 2024, and a decrease on interest expense on outstanding borrowings due to the repurchases of outstanding debt.
Previous wording
(b)The U.S. dollar-equivalent of the facility amount under the Mexico Credit Facility is $54.0 million (Mex$1.1 billion).
Current wording
(b)The U.S. dollar-equivalent of the facility amount under the Mexico Credit Facility is $58.9 million (Mex$1.1 billion).
Previous wording
(c)The U.S. dollar-equivalent of the facility amount under the Europe Credit Facility is $194.1 million (£150 million).
Current wording
(c)The U.S. dollar-equivalent of the facility amount under the Europe Credit Facility is $205.9 million (£150 million).
Previous wording
We expect cash flows from operations, combined with availability under our credit facilities, to provide sufficient liquidity to fund current obligations, projected working capital requirements, maturities of long-term debt and capital spending for at least the next twelve months.
Current wording
We expect cash flows from operations, combined with availability under our credit facilities, to provide sufficient liquidity to fund current obligations, projected working capital requirements, maturities of long-term debt and capital spending for at least the next twelve months. This includes the construction of a new prepared foods facility in Walker County, Georgia which we expect to be completed in the first half of 2027.
Previous wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $127.3 million for the three months ended March 31, 2024. Net noncash expense items included depreciation and amortization of $103.4 million, deferred income tax expense of $15.5 million, stock-based compensation costs of $4.7 million, losses on property disposals of $1.8 million, loan cost amortization of $1.3 million, and accretion of discounts related to Senior Notes of $0.6 million. Other net noncash items were immaterial.
Current wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $220.7 million for the six months ended June 29, 2025. Net noncash expense items included depreciation and amortization of $218.0 million, deferred income tax benefit of $19.5 million, stock-based compensation costs of $14.2 million, loan cost amortization of $2.5 million, losses on property disposals of $2.0 million, loss on early extinguishment of debt of $1.4 million, accretion of discounts related to Senior Notes of $1.2 million, and asset impairment of $0.8 million. Other net noncash items were immaterial.
Previous wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $103.8 million for the three months ended March 30, 2025. Net noncash expense items included depreciation and amortization of $104.5 million, deferred income tax benefit of $11.0 million, stock-based compensation costs of $7.0 million, loan cost amortization of $1.2 million, losses on property disposals of $0.9 million, asset impairment of $0.6 million, accretion of discounts related to Senior Notes of $0.6 million, and gain on early extinguishment of debt recognized as component of interest expense of $0.1 million. Other net noncash items were immaterial.
Current wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $235.9 million for the six months ended June 30, 2024. Net noncash expense items included depreciation and amortization of $211.3 million, asset impairment of $13.4 million, gain on early extinguishment of debt recognized as component of interest expense of $11.2 million, deferred income tax expense of $9.0 million, stock-based compensation costs of $6.8 million, losses on property disposals of $2.7 million, loan cost amortization of $2.6 million, and accretion of discounts related to Senior Notes of $1.3 million. Other net noncash items were immaterial.
Previous wording
The change in trade accounts and other receivables represented a $91.5 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted from an increase in trade accounts receivable primarily due to an increase in sales from more favorable market pricing and a decrease in the use of our discounted accounts receivable program. The change in trade accounts and other receivables represented a $72.4 million source of cash related to operating activities for the three months ended March 31, 2024. This change primarily resulted from a decrease in trade accounts receivable and receivables from insurance recoveries.
Current wording
The change in trade accounts and other receivables represented a $75.0 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted from an increase in trade accounts receivable due to a decrease in discounted accounts receivables and an increase in sales from more favorable market pricing. The change in trade accounts and other receivables represented a $62.4 million source of cash related to operating activities for the six months ended June 30, 2024. This change primarily resulted from a decrease in trade accounts receivable due to timing of payments received.
Previous wording
The change in inventories represented a $64.2 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted primarily from increased input costs and an increase in inventories after higher seasonal sales in the fourth quarter of 2024. The change in inventories represented a $114.5 million source of cash related to operating activities for the three months ended March 31, 2024. This change resulted primarily from decreased raw materials and work-in-process and finished goods inventories primarily due to lower feed ingredient costs.
Current wording
The change in inventories represented a $105.7 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted primarily from increased input costs and an increase in inventories after higher seasonal sales in the U.K. and in anticipation of higher demand over the summer season. The change in inventories represented a $146.2 million source of cash related to operating activities for the six months ended June 30, 2024. This change resulted primarily from decreased raw material costs, work-in-process inventories due to lower feed ingredient costs, and lower finished goods inventories.
Previous wording
The change in prepaid expenses and other current assets represented a $44.0 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments. The change in prepaid expenses and other current assets represented a $27.6 million use of cash related to operating activities for the three months ended March 31, 2024. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments.
Current wording
The change in prepaid expenses and other current assets represented a $17.4 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments and prepaid insurance. The change in prepaid expenses and other current assets represented a $43.5 million use of cash related to operating activities for the six months ended June 30, 2024. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments.
Previous wording
The change in accounts payable, accrued expenses and other current liabilities represented a $118.7 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted primarily from the payment of incentive compensation accrued for in 2024. The change in accounts payable, accrued expenses and other current liabilities represented a $212.8 million use of cash related to operating activities for the three months ended March 31, 2024. This change resulted primarily from timing of payments to our suppliers and a reduction in grain input costs.
Current wording
The change in accounts payable, accrued expenses and other current liabilities represented a $34.6 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted primarily from the payment of incentive compensation accrued for in 2024 and payments of litigation settlements, partially offset by an increase in the days payables outstanding, and increases in accrued payroll and insurance expenses. The change in accounts payable, accrued expenses and other current liabilities represented a $14.3 million source of cash related to operating activities for the six months ended June 30, 2024. This change resulted primarily from timing of payments to our suppliers, a reduction in grain input costs, and timing of legal settlement payments.
Previous wording
The change in income taxes, which includes income taxes receivable, income taxes payable, deferred tax assets, deferred tax liabilities, reserves for uncertain tax positions, and the tax components within accumulated other comprehensive loss, represented a $51.9 million and $35.8 million source of cash for the three months ended March 30, 2025 and March 31, 2024, respectively.
Current wording
The change in income taxes, which includes income taxes receivable, income taxes payable, deferred tax assets, deferred tax liabilities, reserves for uncertain tax positions, and the tax components within accumulated other comprehensive loss, represented a $8.0 million and $88.6 million source of cash for the six months ended June 29, 2025 and June 30, 2024, respectively.
Previous wording
Capital expenditures were incurred primarily to improve operational efficiencies, system enhancement projects, and reduce costs for the three months ended March 30, 2025.
Current wording
Capital expenditures were incurred primarily for growth projects, to improve operational efficiencies, system enhancement projects, and reduce costs for the six months ended June 29, 2025.
Previous wording
Capital expenditures were incurred for growth projects, such as the South Georgia protein conversion plant, and to improve operational efficiencies, system enhancement projects, and reduce costs for the three months ended March 31, 2024.
Current wording
Capital expenditures were incurred for growth projects, such as the South Georgia protein conversion plant, and to improve operational efficiencies, system enhancement projects, and reduce costs for the six months ended June 30, 2024.
Previous wording
Payments on revolving line of credit, long-term borrowings and finance lease obligations during the three months ended March 30, 2025, are primarily related to open market repurchases of outstanding senior notes.
Current wording
Payments for dividend during the six months ended June 29, 2025 are related to the special cash dividend that was declared during March 2025 and paid in April 2025. Payments on revolving line of credit, long-term borrowings and finance lease obligations and payments on early extinguishment of debt during the six months ended June 29, 2025, are primarily related to open market repurchases of outstanding senior notes.
Previous wording
The proceeds from the Tax Sharing Agreement with JBS USA Holdings were a payment of net tax incurred during the tax year 2023. Payments on revolving line of credit, long-term borrowings and finance lease obligations are primarily related to payments on finance lease obligations.
Current wording
Payments on revolving line of credit, long-term borrowings and finance lease obligations during the six months ended June 30, 2024, are primarily related to open market repurchases of outstanding senior notes. The proceeds from contribution of capital under the Tax Sharing Agreement with JBS USA Holdings were a payment of net tax incurred during the tax year 2023. Payments on early extinguishment of debt are transaction fees related to the bond repurchases.
Previous wording
“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction gains, (2) costs related to litigation settlements, (3) restructuring activities losses, and (4) net income attributable to noncontrolling interests. EBITDA is presented because it is used by us and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. We also believe that Adjusted EBITDA, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of our performance with our competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. Some of the limitations of these measures are:
Current wording
“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses, (2) restructuring activities losses, (3) costs related to litigation settlements, and (4) net income attributable to noncontrolling interests. EBITDA is presented because it is used by us and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. We also believe that Adjusted EBITDA, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of our performance with our competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. Some of the limitations of these measures are:
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Restructuring activities. Restructuring activities costs of $3.5 million were recognized in the three months ended June 29, 2025. These charges were incurred by our Europe reportable segment primarily as a result of severance related to back office consolidation.
Current report — wording carried from elsewhere
Gross profit and cost of sales. Gross profit increased by $194.6 million from $1.1 billion generated in the six months ended June 30, 2024 to $1.3 billion generated in the six months ended June 29, 2025. The following tables provide information regarding gross profit and cost of sales information:
Current report — wording carried from elsewhere
Operating income and SG&A expense. Operating income increased by$225.8 million, or 32.7%, from income of$691.1 million generated in the six months ended June 30, 2024 to income of $916.8 million generated in the six months ended June 29, 2025. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Current report — wording carried from elsewhere
Income taxes. Income tax expense increased to $213.7 million, a 24.7% effective tax rate, for the six months ended June 29, 2025 compared to an income tax expense of $152.7 million, a 23.3% effective tax rate, for the six months ended June 30, 2024. The increase in income tax expense resulted primarily from the increase in profit before income taxes.