What changed in this filing

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Item 1. Business

2025-02-13 compared with 2024-02-27 · 32 added, 43 removed, 150 unchanged (33% of the section changed)

6 unchanged sentences

and Europe, and grocery store chains such as Wal-Mart® in Mexico.

As a vertically integrated company, we are able to control every phase of the production process, which helps us manage food safety and quality, control margins and improve customer service.

As a vertically integrated company, we are able to control nearly every phase of the production process, which helps us manage food safety and quality, control margins and improve customer service.

Our plants are strategically located to ensure that customers timely receive fresh products.

With our global network of approximately 4,800 growers, 34 feed mills, 47 hatcheries, 39 processing plants, 30 prepared foods cook plants, 27 distribution centers, ten protein conversion facilities and five pet food plants, we believe we are well-positioned to supply the growing demand for our products.

With our global network of approximately 4,500 growers, 35 feed mills, 49 hatcheries, 39 processing plants, 30 prepared foods cook plants, 29 distribution centers, 12 protein conversion facilities and five pet food plants, we believe we are well-positioned to supply the growing demand for our products.

We operate on the basis of a 52/53-week fiscal year ending on the Sunday falling on or before December 31.

Any reference we make to a particular year (for example 2024) in the notes to these Consolidated Financial Statements applies to our fiscal year and not the calendar year.

Fiscal year 2023 was a 53-week fiscal year.

Fiscal year 2024 was a 52-week fiscal year and fiscal year 2023 was a 53-week fiscal year.

Reportable Segments

We operate in three reportable segments:

and Europe, and Mexico.

U.S., Europe, and Mexico.

We produce or purchase for resale chicken products through our operations in the U.S., the U.K.

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Fresh Products Overview.

Our fresh products consist of refrigerated whole or cut-up chicken, frozen whole chickens, breast fillets, mini breast fillets and prepackaged case-ready chicken, and in the U.K., primary pork cuts, added value pork and pork ribs.

Our case-ready chicken includes various combinations of freshly refrigerated, whole chickens, chicken parts in trays, bags or other consumer packs labeled and priced ready for the retail grocer’s fresh meat counter.

Additionally, we are an

important player in the live chicken market in Mexico.

In 2023, our fresh product sales accounted for 80.8%, 20.7%, and 84.3% of our total U.S., U.K.

and Europe, and Mexico product sales, respectively.

Additionally, we are an important player in the live chicken market in Mexico.

In 2024, our fresh product sales accounted for 82.1%, 22.9%, and 84.2% of our total U.S., Europe, and Mexico product sales, respectively.

Prepared Products Overview.

Our prepared products include portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties and bone-in chicken parts.

These products are sold either refrigerated or frozen and may be fully cooked, partially cooked or raw.

These products are sold either refrigerated

or frozen and may be fully cooked, partially cooked or raw.

In addition, these products may be breaded and/or marinated.

Our prepared products include processed sausages, bacon, slow cooked, smoked meat, gammon joints, ready-to-cook variety of meat products, pre-packed meats, sandwich and deli counter meats, pulled pork balls, meatballs and coated foods.

In 2023, our prepared foods products sales accounted for 9.8%, 67.8%, and 10.0% of our total U.S., U.K.

and Europe, and Mexico chicken and pork sales, respectively.

In 2024, our prepared foods products sales accounted for 10.3%, 65.8%, and 10.4% of our total U.S., Europe, and Mexico chicken and pork sales, respectively.

Exported Products Overview.

19 unchanged sentences

reportable segment 10,629,929 10,027,743 10,748,350

and Europe reportable segment:

Europe reportable segment:

Fresh products 1,178,459 1,074,900 908,882

2 unchanged sentences

Other products 99,624 130,406 148,824

and Europe reportable segment 5,203,321 4,874,738 3,934,062

Europe reportable segment 5,136,747 5,203,321 4,874,738

Mexico reportable segment:

9 unchanged sentences

and foreign governments and weather patterns throughout the world.

We attempt to mitigate the impact of price

volatility on our profitability by decreasing the amount of our products that are sold under longer term fixed-price contracts, broadening our product portfolio and expanding the variety of contracts within our book of business.

We attempt to mitigate the impact of price volatility on our profitability by decreasing the amount of our products that are sold under longer term fixed-price contracts, broadening our product portfolio and expanding the variety of contracts within our book of business.

To also manage this risk, we purchase derivative financial instruments.

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The trademarks are important to the overall marketing and branding of our products.

All major trademarks in our business are registered.

In part, our success can be attributed to the existence and continued protection of these trademarks.

As long as the Company continues to use its trademarks, they are renewed indefinitely.

Some of the more significant owned or licensed trademarks used by the Company or its affiliates are Pilgrim’s®, Just BARE®, Gold’n Pump®, Gold Kist®, Country Pride®, Pierce Chicken®, Pilgrim’s® Mexico, Savoro, To-Ricos, Del Dia®, Moy Park, O’Kane, Richmond, Fridge Raiders and Denny.

A significant portion of our trademarks in our business are registered.

In part, our success is partially dependent on the existence and continued protection of these trademarks.

As long as the Company continues to use its trademarks, they may be renewed indefinitely.

Some of the more significant owned or licensed trademarks used by the Company or its affiliates include Pilgrim’s®, Just Bare®, Gold’n Plump®, Gold Kist®, Country Pride®, Pierce Chicken®, Pilgrim’s® Mexico, Savoro, To-Ricos®, Del Dia®, Moy Park, O’Kane, Richmond, Fridge Raiders and Denny.

The demand for our chicken products generally is greatest during the spring and summer months and lowest during the winter months.

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The competitive factors in our business include price, product quality, product development, brand identification, breadth of product line and customer service.

We believe that being a vertically integrated chicken company and having a fully integrated supply chain in the pork business provides us with long-term cost and quality advantages over non-vertically integrated and other processors.

We utilize numerous advertising and marketing techniques to develop and strengthen trade and consumer awareness and increase brand loyalty for consumer products.

We believe our efforts to achieve and maintain brand awareness and loyalty help to achieve greater price premiums than would otherwise be the case in certain markets and support and expand our product distribution.

We actively seek to identify and address consumer preferences by using sophisticated qualitative and quantitative consumer research techniques in key geographic markets to discover and validate new product ideas, packaging designs and methods.

Although poultry and pork are relatively inexpensive in comparison with other meats, we compete indirectly with the producers of other meats and fish, since changes in the relative prices of these foods may alter consumer buying patterns.

We believe that being a vertically integrated chicken company and having a fully integrated supply chain in the pork business may provide long-term cost and quality advantages over non-vertically integrated and other processors.

We utilize various advertising and marketing techniques to develop and strengthen trade and consumer awareness and enhance brand loyalty for consumer products.

We believe our efforts to achieve and maintain brand awareness and loyalty could support achievement of greater price premiums than would otherwise be the case in certain markets and support and expand our product distribution.

We actively seek to identify and address consumer preferences by using qualitative and quantitative consumer research techniques in key geographic markets to discover and validate new product ideas, packaging designs and methods.

Although poultry and pork are often relatively inexpensive in comparison with other meats, we also compete indirectly with the producers of other meats and fish, since changes in the relative prices of these foods can alter consumer buying patterns.

Regulation and Environmental Matters

The chicken, pork and prepared foods industries are subject to government regulation, particularly in the health, workplace safety and environmental areas, including provisions relating to the discharge of materials into the environment, treatment and disposal of agricultural and food processing wastes, the use and maintenance of refrigeration systems, ammonia-based chillers, noise, odor and dust management, the operation of mechanized processing equipment and other operations, storm water, air emissions, treatment, storage and disposal of wastes, handling of hazardous substances and remediation of contaminated soil, surface water and groundwater, by the Centers for Disease Control, the United States Department of Agriculture (“USDA”), the Food and Drug Administration (“FDA”), the Environmental Protection Agency (“EPA”), the Occupational Safety and Health Administration and state and local regulatory authorities in the U.S.

and by similar

governmental agencies in the U.K., the Republic of Ireland, continental Europe and Mexico.

and by similar governmental agencies in the U.K., the Republic of Ireland, continental Europe and Mexico.

Our chicken processing facilities in the U.S.

1 unchanged sentence

The FDA inspects the production of our feed mills in the U.S.

Our food processing facilities and feed mills in the U.K., continental Europe and Mexico are subject to on-site examination, inspection and regulation by government agencies that perform functions similar to those performed by the USDA and FDA.

Our food processing facilities and feed mills in the U.K., continental Europe and Mexico are subject to

on-site examination, inspection and regulation by government agencies that perform functions similar to those performed by the USDA and FDA.

The EPA, environmental authorities in the U.K., the Republic of Ireland, continental Europe and Mexico, and/or other U.S.

or Mexican state and local authorities may, from time to time, adopt revisions to environmental rules and regulations, and/or changes in the terms and conditions of our environmental permits, with which we must comply.

Compliance with existing or new environmental requirements, including more stringent limitations imposed or expected in recently-renewed or soon-to be renewed environmental permits, may require capital expenditures and operating expenses which may be significant.

Compliance with existing or new environmental requirements, including more stringent limitations imposed or expected in recently-renewed or soon-to be renewed environmental permits or raw material sourcing, may require additional capital expenditures and operating expenses which may be significant.

Moreover, customers in select regions may require additional or more immediate adoption of various regulations, further increasing overall investments and costs.

In the U.K., all poultry farms which exceed a threshold size of 40,000 birds placed are required to carry out activities in compliance with their environmental permits and they must use Best Available Techniques in order to achieve a high level of environmental protection.

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These audits include auditing the physical state of the plant, policies, safety culture and our occupational health clinics.

• Our efforts in 2023 have resulted in year-over-year reductions in severe injuries and days away restricted or transferred of 25% and 8%, respectively.

Diversity and Inclusion.

We believe that promoting diversity and inclusion among our workforce helps to create a trusting and productive workplace.

We encourage the management teams at each facility to hire from the local regions in which they are located.

• Our Equal Employment Opportunity Policy (“EEO Policy”) affirms our commitment to employ and support employees of all races, religions, colors, national origins, sexes, sexual orientations, gender identities and ages.

Through the EEO Policy, we have been involved in diversity hiring initiatives and partnered with universities with an aim of recruiting from a diverse talent pool.

• We track our progress in our efforts to promote diversity and inclusion.

For example, in 2023, women comprised 41%, 40% and 37% of our total workforce in the U.S., the U.K.

and Europe, and Mexico, respectively, and 70% of our total workforce in the U.S.

were minorities.

• Our management team members are expected to attend People First leadership training, which includes a model dedicated to training and awareness on diversity and inclusion.

• We provide workshops on diversity and inclusion for our employees and we engage in targeted recruitment at 35 of the nation’s largest historically black colleges and universities.

• Our efforts in 2024 have resulted in year-over-year reductions in severe injuries of 37%.

Anti-discrimination.

We value diversity in the workplace, and do not discriminate on the basis of age, color, disability, family or marital status, gender, national origin, or any other characteristic protected by applicable law, regulation, or ordinance.

We prohibit discrimination in all recruiting, hiring, promotion, training, compensation, termination, and other employment decisions.

Retention and Career Development.

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Commencing in 2005 through October 2008, he was employed by Braskem S.A., a New York Stock Exchange-listed petrochemical company headquartered in Camaçari, Brazil, first from 2005 to 2007 as its strategy director, then from 2007 until his departure as its corporate controller.

He earned his Master’s of Business Administration degree in 2001 from the Wharton School at the

University of Pennsylvania and a degree in electrical engineering in 1993 from Escola Politécnica da Universidade de São Paulo.

He earned his Master’s of Business Administration degree in 2001 from the Wharton School at the University of Pennsylvania and a degree in electrical engineering in 1993 from Escola Politécnica da Universidade de São Paulo.

Matthew Galvanoni was named the Chief Financial Officer in February 2021, effective March 2021.

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business