Pilgrim’s Pride Corporation (NASDAQ:PPC) Q3 2023 Earnings Call Transcript

Fabio Sandri: Yes. I think in Europe, what we were seeing, it was an overall reduction in demand, especially on the red meat category and a little bit of pork too because it was more expensive than all others. Chicken was actually steady or gaining a little bit of, let’s say, market share in the overall protein category. As we mentioned, as we’re seeing the economy improving, we were seeing that the consumer with more available income, and we expect a better overall demand both in retail and in foodservice. I think also when we were seeing a little bit of higher inflation in Europe, what we were seeing people trading out of some branded and going to more the retail brands, which typically are more affordable, and despite that, we saw a growth in our Richmond because of the strength of the brand, but we believe that, that could be a nice change, and we can see consumers going back to some branded offerings.

Which could help, especially the Richmond brand and our Fridge Raiders brands in the region.

Operator: This concludes our question-and-answer session. I will now turn the call back over to Fabio for closing comments.

Fabio Sandri: Thank you very much. Over the past year, we’ve experienced many challenges throughout our business, ranging from volatile market fundamentals, persistent inflation, elevated input costs and compressed spread across proteins. Nonetheless, we continue to invest in our business and building the best team in the industry, driving profitable growth through key customer partnerships, diversification and operational excellence, making our foundation even stronger as conditions change. Moving forward, we are confident on market condition improvements as wage growth is outpacing inflation, floating spreads and return to more normal levels and grade production has increased. Regardless of external factors, we remain relentless in our focus on execution of our strategy, reinforcing our competitive advantage and becoming the best and most respected company in our industry is creating a better future for our members. Thank you for joining us today.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.