How Is Pilgrim’s Pride Corp Likely To Grow In The Next 2 Years?

PPC: Pilgrim's Pride logo
PPC
Pilgrim's Pride

Pilgrim’s Pride Corp (NASDAQ: PPC), has had decent growth in revenue in the last few quarters. During the recent annual earnings the company’s revenue grew by 9% to $10.8 Billion  for the full year, over 2016’s $9.8 Billion, driven by meaningful organic growth across all three of its segments.  The U.S reportable Segment grew by 11.6% backed by the company’s investments, acquisitions, and operational improvements in the region.  The U.K and Europe segment grew by 3% on y-o-y basis benefiting from successful integration of acquired operations as well as a focus on key customers.  The Mexico segment remained profitable with 5% growth driven by increased volume. Pilgrim’s Pride remains very optimistic about its Mexican operations as the demand for chicken is increasingly growing from the region.

Going forward, we are projecting growth in revenues for the three segments as the company’s focus on diversification and differentiated product based needs of key customers has been driving its growth. Overall, we anticipate the company’s revenue to grow at a compounded annual growth rate (CAGR) of 4.3%. We have built an explanatory dashboard How Is Pilgrim’s Pride Co Likely To Grow In the Next Two Years? to outline major drivers of revenue over the next two years.

Estimating  Pilgrim’s Pride Corp Revenue Growth

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Pilgrim’s Pride Corp generates revenue from three reportable segments of the Company:  U.S. Segment, U.K. & Europe, and Mexico Segment.

As per our analysis, we believe that all the three reported segments of the company will report progressive growth in the next two years. The Mexico Segment operations on the other hand, are expected to drive revenue growth in line with the guidance provided by the company.

The Company is more than ever focused on key strategic growth initiatives like increasing product portfolio differentiation, strengthening key customer relationships, and improving its margin profile for the years ahead. Also, the recent Acquisition of Moy Park has positioned PPC as the global leader in chicken and chicken-based Prepared Foods, aligning their strategic priorities and providing a strong platform for future growth. All these factors, coupled with strong sales momentum, will enable PPC to continue  to grow its top line.

Our detailed estimates have been highlighted in our dashboard above. You can make changes to our assumed figures to arrive at your own revenue and growth estimates for the company.

 

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