Pilgrim’s Pride CEO Fabio Sandri said opportunities are plentiful for the company’s growth in Europe.
Making comments during the company’s third quarter earnings call on October 30, Sandri spoke of the successful integration of the Pilgrim’s Pride businesses in Europe, which includes Pilgrim’s UK, Moy Park and Pilgrim’s Food Masters, which have been consolidated into Pilgrim’s Europe.
“I think we, as we say, turned the page in Europe,” Sandri said. “So, I think we are in with great grounds to now be able to grow. I think growth could be through M&A (mergers and acquisitions) and we could growth through some organic expansions. I think we have the right structure today. We have the right team to support those.”
Fabio SandriPilgrim's Pride
Sandri said Pilgrim’s Europe continues to improve its current portfolio organically, and one of the best ways to do that is through innovation. By partnering with its key customers in Europe and innovating to meet their needs. Since Pilgrim’s operations are more diversified in Europe than it is in the United States and Mexico, the company’s ability to extend its reach in Europe is greater.
“Because of our differentiated products, we help our key customers to differentiate, and whey they grow, we are allowed to grow,” Sandri said. “When you look at our portfolio in Europe, it is the most diversified that we have around the world. We are in the chicken business. We have the pork business, but we also have the sausage and the meals business, along with the food service business in Europe. We have a very diversified portfolio, and we’re looking into opportunities in all those categories or segments.”
At the present time, the United Kingdom (U.K) and Ireland are where Pilgrim’s has the largest presence, although the company’s website also mentions it has facilities in France and the Netherlands.
But, Sandri said: “We see opportunities in other countries in the European Union for us to expand our expertise in chicken, and then within the U.K. and other countries in Europe, we see some opportunities in the meal segments. We see opportunities in the sausage and branded product segments.”
Pilgrim’s financial performance by region
Pilgrim’s saw its net sales in the third quarter increase on a year-over-year basis in all three geographies: Europe, the U.S. and Mexico. The company achieved net sales of nearly US$4.8 billion during the quarter, up from US$4.6 billion during the year-ago period.
During the most recent quarter, U.S. net sales reached approximately $2.8 billion, while sales in Europe and Mexico respectively reached $1.4 billion and $530 million.
However, it was only in Europe where Pilgrim’s saw an increase in operating income. That figure rose from US$45.6 million during the third quarter of fiscal year 2024 to US$69.5 million during the most recent quarter.
