Pilgrim's Pride (PPC) released its financial results for the third quarter of 2021 on Oct. 27. The poultry producer — with a big presence in the U.S., Europe, and Mexico — posted net sales of $3.83 billion, which is a 24% increase year-over-year. The U.S. and Mexico performed well, although the company’s European business continued to struggle to some degree. Pre-market today, PPC stock dropped 1.87% in value.
The U.S. and Mexico Perform Well
Pilgrim's Pride reported that both the U.S. and Mexico performed well. “In our U.S. business, demand and pricing have been robust, driven by ongoing high levels of demand at retail and the continued recovery in commercial foodservice,” Pilgrim’s CEO Fabio Sandri explained.
The company’s sales in Mexico also continued to do well. Sandri notes that grain pricing has started to moderate as the company comes off “the seasonally strong summer months and head into fall.”
European Business Labor Shortages and Supply Chain Issues
Labor shortages and supply chain issues negatively impacted Pilgrim’s Pride’s combined European business. Freight costs, lower regional pig pricing, truck-driver shortages in the U.K., and rising fuel costs have also hurt sales. “Labor shortages continue to be our most pressing issue,” Sandri said, referring to the company’s overall operations, as well as Europe.
