Pilgrims Pride Corp (PPC)
Gross profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,118,401 | 893,136 | 1,044,524 | 1,442,870 | 1,811,803 | 2,068,521 | 1,943,094 | 1,646,564 | 1,365,827 | 1,240,723 | 1,182,722 | 922,340 | 838,196 | 812,194 | 780,549 | 1,028,554 | 1,070,394 | 980,848 | 868,392 | 774,750 |
| Revenue (ttm) | US$ in thousands | 17,121,930 | 16,725,710 | 16,871,300 | 17,222,890 | 17,295,990 | 17,269,750 | 16,618,380 | 15,613,130 | 14,664,000 | 13,755,120 | 12,996,470 | 12,195,720 | 12,013,720 | 11,959,380 | 11,675,740 | 11,696,170 | 11,323,080 | 10,916,380 | 10,833,440 | 10,859,590 |
| Gross profit margin | 6.53% | 5.34% | 6.19% | 8.38% | 10.48% | 11.98% | 11.69% | 10.55% | 9.31% | 9.02% | 9.10% | 7.56% | 6.98% | 6.79% | 6.69% | 8.79% | 9.45% | 8.99% | 8.02% | 7.13% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,118,401K ÷ $17,121,930K
= 6.53%
The gross profit margin of Pilgrim's Pride Corp. has experienced a declining trend over the past eight quarters, starting at 10.46% in Q1 2022 and continuously decreasing to 6.44% in Q4 2023. This downward trajectory indicates challenges in maintaining profitability from its core operations over the period.
The company's gross profit margin reached its peak at 11.90% in Q3 2022 but has since been on a consistent decline. This indicates potential issues with pricing strategies, cost control, or competition impacting the company's ability to generate profits from its sales.
The decreasing trend in gross profit margin raises concerns about Pilgrim's Pride Corp.'s ability to effectively manage its cost of goods sold relative to its revenue generation. It suggests the company may be facing pressure on its pricing power, increased production costs, or the need for operational efficiency improvements.
Overall, a sustained downward trend in gross profit margin could signal potential challenges for Pilgrim's Pride Corp. in maintaining profitability and financial performance in the future. Further analysis of the company's cost structure and revenue streams may be necessary to address the underlying issues impacting its gross profit margin.
Peer comparison
Dec 31, 2023