Chicken producer Pilgrim’s Pride (NASDAQ:PPC) reported Q4 FY2023 results beating Wall Street analysts' expectations , with revenue up 9.7% year on year to $4.53 billion. It made a non-GAAP profit of $0.59 per share, improving from its loss of $0.49 per share in the same quarter last year.

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Pilgrim's Pride (PPC) Q4 FY2023 Highlights:

• Revenue: $4.53 billion vs analyst estimates of $4.48 billion (1.2% beat)

• EPS (non-GAAP): $0.59 vs analyst estimates of $0.43 (36.6% beat)

• Free Cash Flow of $166.8 million, similar to the previous quarter

• Gross Margin (GAAP): 7.1%, up from 2.3% in the same quarter last year

• Market Capitalization: $6.84 billion

“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. 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,” said Fabio Sandri, Pilgrim’s CEO.

Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers.

Packaged Food

As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods, prepared meals, or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences.The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.

Sales Growth

Pilgrim's Pride is one of the largest consumer staples companies and benefits from a strong brand, giving it customer trust and leverage in many purchasing and distribution negotiations.

As you can see below, the company's annualized revenue growth rate of 12.8% over the last three years was solid for a consumer staples business.

This quarter, Pilgrim's Pride reported solid year-on-year revenue growth of 9.7%, and its $4.53 billion in revenue outperformed Wall Street's estimates by 1.2%. Looking ahead, Wall Street expects sales to grow 3.1% over the next 12 months, a deceleration from this quarter.