Good morning, and welcome to the Third Quarter 2021 Pilgrim's Pride Earnings Conference Call and Webcast. [Operator Instructions]. Please note that the slides referenced during today's call are available for download from the company's investor website at ir.pilgrims.com in the Events and Presentations section. I would now like to turn the conference over to Pilgrim's Pride Chief Financial Officer, Matt Galvanoni. Please go ahead.

Good morning, and thank you for joining us today as we review our operating and financial results for the third quarter ended September 26, 2021. 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 8-Ks and are available online at sec.gov. Fabio Sandri, President and Chief Executive Officer, and I 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 date 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 those factors has been provided in today's press release, our Form 10-K and our regular filings with the SEC. I will now turn the call over to Fabio.

Thank you, Matt. Good morning, everyone, and thank you for joining us today. For the third quarter of 2021, we reported net revenues of $3.8 billion, a 24% increase over the same quarter last year and adjusted EBITDA of $347 million, up nearly 14% versus Q3 last year and up 34% compared to Q3 2019. Our adjusted EBITDA margin was 9.1% compared to 9.9% a year ago. Adjusted EPS was $0.67 versus $0.66 in the third quarter of 2020 and $0.45 in Q3 2019. I'm pleased with the performance this quarter as we continued facing challenges resulting from the ongoing pandemic and unprecedented economic conditions in U.K. Our overall portfolio performed well in the third quarter despite labor shortages that affected our product mix in both the U.S. and U.K. In U.S., commodity chicken pricing remained well above 5-year averages and our diverse portfolio allows us to capture the upside while protecting us from future downsides. Turning to the broader U.S. market. Chicken production in Q3 increased an estimated 1.8% over last year due to a slight increase in head along with higher average live weights, putting production at 0.3% greater on a year-to-date September basis. USDA data indicated that the hatch rate continued to decline throughout the quarter, suggested limited growth in the next months. USDA outlook indicates a 0.5% increase in supply in Q4 which will take the total increase for the year at 0.3%. In the U.S. market, retail demand remained extremely strong throughout the quarter. While trip frequency has yet to return to pre-COVID levels, consumers are still buying more units per trip compared to 2019, and demand for fresh chicken remains above the pre-COVID base line. Meanwhile, Retail daily posted improvements year-over-year and frozen category continues to grow even when compared to extremely strong demand…

Thank you, Fabio, and good morning, again. For the third quarter of 2021, net revenues were $3.83 billion versus $3.8 billion a year ago, with an adjusted EBITDA of $347 million and a 9.1% margin compared to $305 million and 9.9% margin in Q3 last year. We achieved $162.5 million of adjusted net income. In the quarter, we reported GAAP net income of $61 million versus GAAP net income of $34 million in 2020. The most significant adjustment in the quarter was an additional $126 million accrual related to legal settlements. Adjusted EBITDA margins were 10.7% in the U.S., 13.1% in Mexico and 3% in Europe. Our adjusted EBITDA in the U.S. in Q3 was $263 million compared to $180 million a year ago and $176 million in 2019. Sales were up due to strong market pricing and slightly higher volumes compared to both 2020 and 2019. Gross profit margins were higher compared to both 2020 and 2019 also. In Mexico, adjusted EBITDA in Q3 was $56.3 million versus $69.2 million a year ago and $45 million in 2019. Net sales were up due to higher market pricing and volumes. Over the last 5 quarters, Mexican business has benefited from a balanced market supply demand and dynamic. However, in addition to seasonal pricing decreases, recent increases in chicken and pork imports are headwinds to current market prices. For Moy Park, adjusted EBITDA in Q3 was $19.8 million versus $39.6 million a year ago and $37.9 million in 2019. Pilgrim's U.K. had adjusted EBITDA of $8 million in Q3 compared to $15.4 million a year ago. As Fabio previously referenced, both Moy Park and Pilgrim's U.K. results were negatively impacted by labor shortages, energy cost increases and transportation challenges. As the acquisition of Pilgrim's Food Masters closed at the end of…

Thank you, Matt. The topic of labor shortage came up several times in our remarks this morning. and I want to thank all of the Pilgrim's team members around the world who continue to work diligently to keep producing superior quality products for our customers, consumers and communities. As we always say, people is our most important asset, and you made the difference. I'd also like to thank all of our stakeholders, family farm partners, suppliers and customers. Everyone working together makes our business possible. We appreciate your interest in Pilgrim's. That concludes our call.

As the company will not be taking questions today, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.