GREELEY, COLO. — Pilgrim’s Pride Corp., a unit of JBS SA, divulged how the US business portfolio overcame difficulties in supply and demand fundamentals and elevated input costs earlier in 2023 to show improved production efficiencies.

The company reported net sales of $4.5 billion for the fourth quarter of 2023, ended Dec. 31, 2023, which was an increase from $4.1 billion reported during the same 13-week period in fiscal 2022. 

For fiscal 2023, Pilgrim’s reported net income was $321.6 million versus $745.9 million in 2022.

Net sales for 2023 were $17.4 billion, which was similar to the previous year.

Within its earnings report, Pilgrim’s noted that in the last year commodities were exceptionally volatile as markets dealt with supply and demand imbalance and availability of other proteins and consumer sentiment. However, the company said it gradually returned to a more seasonal level even with elevated cost inflation.

“While our business faced a unique set of challenging conditions in 2023, we persevered as our team members maintained a leadership mindset and elevated their focus and execution of our strategy,” said Fabio Sandri, chief executive officer of Pilgrim’s Pride. “As a result, we demonstrated an ability to drive profitable growth even under the most difficult circumstances as our sales and adjusted EBITDA strengthened throughout the year and showed increased momentum as we entered 2024.”

During the fourth quarter, Pilgrim’s stated that the US portfolio continued to grow profitable in case ready and small birds, thanks to realized benefits from additional promotional activity with key customers, more distribution and increased retail pricing spreads from competing proteins.

US sales in Q4 of this year increased significantly, at $2.6 billion, compared to $2.43 billion in the fourth quarter of 2022. For the year, US sales in 2023 were up at $10.03 billion compared to $10.5 billion during the same period last year.

Prepared foods also gained further momentum as branded offerings expanded throughout retail and distribution improved for foodservice.

“Given the actual market conditions, the affordability and availability of chicken resonated with consumers,” Sandri said. “As such, we worked closely with our key customers in both retail and food service to drive increased traffic through promotions and broaden their lineup of chicken offerings across fresh and prepared items.”

In the United Kingdom and Europe, sales in Q4 of this year increased significantly, at $1.34 billion compared to $1.23 billion in the fourth quarter of 2022. For the year, European sales in 2023 were up at $5.20 billion compared to $4.87 billion during the same period last year.

“We implemented a more nimble organizational structure that promotes ownership and discipline throughout our diversified portfolio,” Sandri said. “Moving forward, we will continue to explore alternatives across all aspects of the organization to cultivate profitable growth.”

In Mexico, sales increased in the fourth quarter, to $526.6 million compared to $462.4 million during the same time period in 2022. Net sales in Mexico were $2.13 billion compared to $1.85 billion in 2022.

“In the fourth quarter, we further diversified our portfolio as our brands continue to gain strong traction with consumers and retailers alike,” Sandri said. “Our investments to increase capacity and reduce production risk through operational excellence are proceeding as planned.”