Pilgrim's Pride Corporation

Good morning and welcome to the third quarter of 2025 Pilgrims Pride Earnings Conference Call and Webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. At the company's request, this call is being recorded. Please note that the slides referenced during today's call are available for download from the Investors section of the company's website at www.pilgrims.com. After today's presentation, there will be an opportunity to ask questions. I would now like to turn the conference call over to Andrew Rogicki, Head of Strategy, Investor Relations, and Sustainability for Pilgrim's Pride.

Good morning, and thank you for joining us today as we review our operating and financial results for the third quarter ended on September 28, 2025. Yesterday afternoon, we issued a press release providing an overview of our financial performance for the quarter. including a reconciliation of any non-GAAP measures we may discuss. A copy of the release is available on our website at ir.pilgrims.com, along with slides for reference. These items also have been filed as Form 8Ks and are available online at sec.gov. Fabio Sandri, President and Chief Executive Officer, and Matt Galinoni, Chief Financial Officer, will present on today's call. Before we begin our prepared remarks... I would like to remind everyone of our safe harbor disclaimer. Today's call may contain certain forward-looking statements that represent our outlook and current expectations as of the day of this release. Other additional factors not anticipated by management may cause actual results to differ materially from those projected in these forward-looking statements. Further information concerning these factors have been provided in yesterday's press release, our Form 10-K, and our regular filings with the SEC. I would now like to turn the call over to Fabio Sandri.

Thank you, Andy. Good morning, everyone, and thank you for joining us today. For the third quarter of 2025, we reported net revenues of $4.8 billion, with an adjusted EBITDA of $633 million and an adjusted EBITDA margin of 13.3%. Our performance reflects the ability of our strategies to mitigate the impact of increasing volatile commodity markets drive category growth with key customers on retail and food service, and continue to close efficiency gaps in our operations. In the U.S., our diversified portfolio continues to be able to capture upsides in the commodity market while protecting from downsides. Case Ready realized strong growth as sales to key customers exceeded category averages, and Big Bird improved operating costs through production efficiencies and life performance. Small Bird experienced robust demand as chicken-focused QSRs maintained steady traffic. Prepared Foods continued to expand through incremental distribution and portfolio expansion throughout retail and food service. Europe entered a new phase of its profitability journey through the new partnerships with key customers, investments in demand creation, and acceleration of branded growth. Branded growth, product mix optimization and innovation will continue to be priorities during this evolution. Mexico continues to drive growth with key customers and develop brand presence in both fresh and prepared, further diversifying our portfolio from inherent volatility in the live commodity markets. Our investments in growth continue and all projects remain on schedule. Based on these investments, we can increase returns while reducing volatility in our businesses. creating the opportunity of a better future for our team members and unlocking value for shareholders. Turning to supply, the most recent published USDA data indicated that ready-to-cook production for the U.S. grew 2.7% year-over-year, driven by increased headcount, improved live performance, and higher than average live weights. Chicken egg sets were higher than last year, giving a more productive layer flock and record hatchery utilization rate. Hatchability improved, exceeding levels from 2024 for the first time this year. As a result, chick placements were higher than Q3 of 2024 throughout the entire third quarter. When combined with positive growing conditions, live weights were higher than average and overall livability improved. Increased production was seen in Q3. This scenario was more significant during the month of September. Considering the factory's Supporting supply, the USDA latest estimate forecast a 2% year-over-year increase in broiler production for 2025, suggesting an increase of 2.3% during the fourth quarter. As for overall protein availability, the USDA projects a growth of only 0.8% for 2025. Notably, chicken is the only protein expected to see an increase, offset by decreases in availability of beef, pork, and turkey. With respect to demand, macroeconomic indicators are shaping consumer behavior amid low sentiment. Inflation has increased for food overall and at home eating occasions. As consumers are trying to stretch their budgets, we are seeing more trips to the retail with smaller basket sizes and lower traffic at food service. Nonetheless, demand for chicken remains strong across both channels, given its relative affordability, availability, and flexibility compared to other proteins. In fresh retail, boneless chicken breasts experienced notable growth as the retail pricing spread against ground beef remained at record levels. Boneless thighs also realized significant gains driven by a narrowing price gap with boneless skinless breasts and continued consumer momentum. While wing pricing remained relatively steady compared to last year, volumes continued to grow. The daily also drove growth through enhanced velocity as shoppers increasingly turn to prepare meals as a more affordable alternative to traditional ready-to-eat options. Frozen prepare also saw gains from improved velocity along with better production mix as nuggets and strips continue to capture a large share of meal occasions. In food service, Rising costs associated with dining out are impacting overall restaurant traffic. Nevertheless, operators continue to strategically lean into chicken through value offerings, limited time offers, and menu updates as a means to trigger or sustain consumer engagement. Value-added chicken-focused QSRs continue to leverage the affordability of chicken, outperforming the broader dining sector, showing greater resilience amid declining traffic. In exports, we have realized values compared to last year and at levels higher than historical amounts. Other than China, we have not experienced any meaningful challenges from tariffs or other barriers in our traditional trade lanes. While we still anticipate seasonal declines in the upcoming quarter, demand should be robust compared to previous years. We continue to be vigilant in our biosecurity measures, especially as commercial cases of high path avian influenza have risen. As such, our geographic diversity and expansive network of international customers will continue to be critical to manage any potential outbreaks. As for feed, corn pricing remains stable as market fundamentals balance larger than anticipated U.S. supply from increased corn acreage against robust interest from export markets. Based on the most recent data available, the USDA expects record corn demand. Nonetheless, U.S. overall supply is expected to increase 10% versus last year, resulting in ending stocks of over 2 billion bushels. Overall, global corn stocks are expected to remain relatively flat. Soybeans fell through the quarter, giving increased crush capacity and record South American harvest during the first half of 2025, ensuring ample global soybean meal supplies. Most recent forecasts indicate that U.S. soybean stocks will be flat compared to prior year, whereas global soybean stocks are expected to build for the third year in a row. Global wheat production rebounded strongly as major exporting countries produced more than 23 million metric tons compared to last year. Wheat prices moved lower during Q3, generating demand and clearing supplies. In the UK, production rose over 2 million metric tons compared to prior year. Further increases in wheat planting are anticipated this fall for harvest in the summer of 2026, which could increase availability. During the remainder of 2025, the corn and soybean meal markets will focus on final United States yields, the start of the South American weather season, and changes to export flows of U.S. grain and oilseeds from the ongoing trade negotiations. Turning to the U.S., chicken demand remains strong across retail and food service. Equally important, our diversification across bird sizes in fresh and growth of prepared foods alleviated the impact of a decline in commodity market values during September. As a result, our margins were very comparable to last year. Case Ready benefited from relative affordability of chicken in retail compared to other proteins. More importantly, sales to key customers were significantly higher than category average, suggesting our higher attribute differentiated offerings continue to resonate with consumers. Big Bird enhanced production efficiency through improved yields, equipment, upgrades, and team member training. Live operations also made significant progress through revised management programs, updated housing, and improved bird health. While we experienced some volatility in commodity ticket values in September, big bird margins were comparable to last year, given our operational progress and declines in feed costs. Small birds benefited from steady demand from key customers among leading QSRs and improvement in operational excellence, despite some reduction in demand in the bone-in category. In prepared foods, net sales grew by over 25% through expanded offerings and increased distribution. Within retail, the JustBear brand continues to lead the category growth as market share rose by nearly 300 basis points versus the same period last year. The Pilgrims brand line of products also continues to gain consumer traction and market price recognition. Velocity on our core items improved, and the food and wine and serious eats both recognized our ultimate nugget line as the best chicken nugget in their September publication. In food service, repair sales expanded faster than channel average. Innovation played a critical role as over 80% of growth came from new items. In Europe, we have undertaken a multi-year journey to drive profitable growth Over the past two years, we consolidated our manufacturing network and simplified our organization to create a more nimble, key customer-focused organization. As a part of this effort, we remain focused on quality and service. Based on our work, we have continually received recognition for our supply chain capabilities over the past several years and are once again awarded Supplier of the Year by key retailers during the quarter. With a solid manufacturing and corporate base, we are now focused on growth through our diversified protein platform with innovation, brands, and key customer partnerships. Within Fresh, demand for our chicken continues to be strong. Additional opportunities exist to grow as chicken remains the fastest growing category within retail. Similarly, several leading QSRs continue to emphasize chicken given its affordability and availability, creating further prospects Given this attractive environment, we will explore investment to accelerate our growth in this segment. The pork business was more challenging during the quarter, as European hog pricing fell as demand softened from primary export markets, especially from China. That started an anti-dumping investigation against Europe. To mitigate this scenario, we created differentiated, higher-attribute offerings in the UK and were able to secure a long-term arrangement supporting the growth of a key customer. We will continue to pursue similar arrangements going forward. In our branded portfolio, Fridgeraders achieved its highest ever household penetration. Rollover continued to expand given incremental distribution. Both brands grew faster than the category. Our largest brand, Richmond, has experienced relatively steady volumes year-to-date. However, We have experienced increased competition from private label offerings, given the availability of imported meat into the UK. To revigorate growth and increase share, we will amplify our investment in promotions and continue to bring new and exciting products to the marketplace. Also, we will continue to cultivate our presence in food service. To that end, we've increased our distribution and key customer QSR's demand remains robust, as sales have increased by over 15% year-to-date. We will look forward to further expand our presence across pubs and bars through leading distributions. In Mexico, we continue to diversify our portfolio and reinforce the foundation for profitable growth and reduce volatility. In fresh retail, sales to key customers rose by nearly 9% compared to last year. Momentum for branded offerings continue to grow, led by JustBear. Since Q3 of last year, our volumes have more than tripled. Similarly, Prepared food sales are up over 9% compared to last year, led by our Pingurus brand, which rose over 12%. In food service, QSR has been exceptionally strong as sales increased by 17%. Given our continued development of key customer partnerships, branded growth, and expansion in prepared, Mexico becomes even more attractive given its enhanced return profile and growth potential. We remain committed to investments in our growth agenda. In the U.S., our portfolio strengthening with the conversion of a Big Bird facility to case-ready, a new protein conversion plant, a new state-of-the-art prepared food facility in Walker County, combined with upgrades in processing and volume in Big Birds, all remain on schedule. Once completed, these investments will enhance our competitive differentiation in fresh, further diversify our portfolio through brands, and enhance operating efficiencies. As a result, our U.S. business will become even better equipped to meet consumer preferences and key customer growth, while better managing increasing volatility in the commodity market. Similarly, our expansions in fresh and prepared in Mexico continue as planned. In fresh, progress continues at Veracruz and Campeche, as breeder and broiler farmers have both started production. In prepared foods, construction is well underway, which is an initial production testing slate for the late in Q4. Given these investments, Mexico will improve biosecurity, expand distribution in fresh, and further diversify its portfolio through value-added. Like the U.S., Mexico will become even more adept at managing volatility of the live commodity markets. Taking together these investments will reinforce our strategies, reduce risk, and increase returns for our business, creating additional value for our shareholders. And earlier this week, we published our 2024 Sustainability Report, which provided an update on our progress against environmental, social, and governance matters critical to our business. To that end, we continue to integrate sustainability throughout all aspects of our strategy and business to enhance environmental stewardship, conserve natural resources, and cultivate team member development. Since 2019, we have reduced our scope one and two emissions intensity by 23% and improve our global safety index by over 77%. Usage of renewable electricity continue to be a focus area and now constitutes over 21% of our overall electricity usage. Team member development remains a key priority. Over the past year, we have provided more than 5.7 million training hours to improve skills and create opportunities within our company. Our Better Futures programs continue to generate remarkable enthusiasm as more than 285 team members or their dependents have enrolled in tuition-free higher education programs. With that, I would like to ask our CFO, Matt Galvanone, to discuss our financial results.