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Pilgrim's Pilgrim's Pride Reports Third Quarter 2021 Results with Strong Growth in Sales and Adjusted EBITDA October 27 , 2021 GREELEY , Colo . , Oct. 27 , 2021 ( GLOBE NEWSWIRE ) -- Pilgrim's Pride Corporation ( NASDAQ : PPC ) , one of the world's largest poultry producers , reports its third quarter 2021 financial results . Third Quarter Highlights • Net Sales of $ 3.83 billion , up 24 % from prior year . • Consolidated GAAP Operating Income margin of 3.2 % with GAAP Operating Income margins of 2.9 % in U.S. , 11.5 % in Mexico and marginally positive in Europe . Adjusted U.S. Operating Income margin of 8.2 % . • GAAP Net Income of $ 60.8 million . Adjusted Net Income of $ 162.5 million or adjusted EPS of $ 0.67 . • Adjusted EBITDA of $ 346.9 million , or a 9.1 % margin , 13.7 % higher than a year ago . • Our portfolio continued to perform well , as demand in the U.S. continues its recovery . Our foodservice business improved year - over - year , achieving levels higher than pre - pandemic , while Retail volumes remained strong . Our margins continued to improve , especially on the Commodity large bird deboning operation , despite higher input and operating costs and less than optimal mix due to the significant ongoing labor shortages . • Mexico continued to perform well and grow its sales of branded products , while following the normal seasonality of the business . • Our combined European business was significantly impacted by inflationary cost pressures on inputs , utility and freight costs and increasing labor shortages ; along with lower pig pricing in the region . The business overcame significant supply chain challenges to continue to support our Key Customers in the U.K. • On September 24 , we closed on the acquisition of the Kerry Consumer Foods ' Meats and Meals business in the U.K. and Ireland . The business will be known as Pilgrim's Food Masters and will add differentiated , value added protein and integrated prepared foods to our portfolio , anchored by leading brands . • Recorded an aggregate legal contingency accrual of $ 126 million in the quarter . • Our liquidity position remains strong with an Adjusted EBITDA net leverage ratio at 2.2x following both the issuance of $ 900 million in aggregate principal amount of 3.50 % Senior Notes due 2032 and increasing and extending our U.S. credit facility during the third quarter . ( Unaudited ) Three Months Ended September 26 , 2021 September 27 , 2020 Y / Y Change September 26 , 2021 Nine Months Ended September 27 , 2020 Y / Y Change Net sales U.S. GAAP EPS $ 3,827.6 $ $ 0.25 $ 0.14 Operating income $ 120.8 $ 94.3 ( In millions , except per share and percentages ) 3,075.1 +24.5 % $ +78.6 % +28.1 % $ 10,738.7 $ 8,974.1 +19.7 % $ ( 0.02 ) $ 0.38 -105.3 % 156.1 $ 206.0 -24.2 % Adjusted EBITDA ( 1 ) $ 346.9 $ 305.0 +13.7 % $ 972.4 $ 582.7 +66.9 % Adjusted EBITDA margin ( 1 ) 9.1 % 9.9 % -0.8 pts 9.1 % 6.5 % +2.6 pts ( 1 ) Reconciliations for non - U.S . GAAP measures are provided in subsequent sections within this release . " On the strength of our product portfolio , we performed well in the third quarter with adjusted EBITDA up substantially over the third quarter of 2020 and the more normalized results of Q3 2019 , despite the ongoing challenges brought on by the COVID pandemic , " said Fabio Sandri , Chief Executive Officer of Pilgrim's . " Labor shortages continue to be our most pressing issue , ” Sandri said . “ I'm extremely proud of the Pilgrim's team members who work hard every day to ensure our customers and consumers receive the high - quality foods they expect from us . Staffing challenges , however , have hindered our ability to achieve the ideal product mix with efficient processes . We will continue to make adjustments on a plant by plant basis to improve staffing levels and optimize our mix . " " In our U.S. business , demand and pricing have been robust , driven by ongoing high levels of demand at retail and the continued recovery in