(Bloomberg) -- Pilgrim’s Pride Corp. is eyeing acquisitions to boost its growth as increased chicken demand drives profits to a record.
The producer, which is controlled by Brazilian meat empire JBS SA, is looking for alternatives to expand both geographically and further into the prepared and branded-food segments, according to Chief Executive Officer Fabio Sandri.
“We are seeing a lot of opportunities to support growth,” Sandri said in a conference call with analysts, also citing the potential for more investments to increase plant capacity. He particularly cited Mexico as being ripe for acquisitions and organic growth.
The comments came after Pilgrim’s reported a record profit of $1.67 a share profit for the second quarter, almost four times higher than a year earlier and above the highest of analyst projections compiled by Bloomberg. The company, which has operations in North America and Europe, is also awash in cash, with net debt having plunged to only 1.1 times earnings before items such as interest and taxes.
Pilgrim’s Pride’s shares jumped as much as 8.2% Thursday, the most intraday in over a year, to an all-time high before trimming much of the gains. The stock has surged the most among global competitors in US dollar terms this year.
Chicken producers have been among the biggest winners from a plunge in prices for soybeans and corn, which are used to feed poultry. They have also benefited from rising demand, with consumers seeking cheaper alternatives to beef, and shrinking inventories of cuts such as breasts, thighs and wings.
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