Brazil’s JBS Posts Q2 Profit Amid Beef Slump with Boost from Chicken and Pork Divisions
SAO PAULO, Aug 13 (Reuters) – JBS SA, the world’s largest meatpacker, reported a net profit of 1.72 billion reais ($315.2 million) for Q2 2023, driven by robust performances in its poultry and pork divisions. This growth, notably from units like Pilgrim’s Pride, JBS USA Pork, and Brazil’s Seara, offset a downturn in its Beef USA division. Despite missing the net profit forecast of 2.02 billion reais by LSEG analysts, JBS bounced back from a net loss in the same quarter of the previous year.
Adjusted EBITDA surged to 9.88 billion reais for the quarter. CEO Gilberto Tomazoni attributed the strong performance to favorable supply-demand dynamics, lower animal feed prices, and operational enhancements. Tomazoni highlighted that Seara had overcome past challenges and is poised for further improvements in commercial strategies, pricing, and distribution.
The CEO also reiterated the importance of a pending dual share listing to unlock value in the U.S., pending SEC approval. While exports to China dropped, demand from the U.S., Chile, and the Middle East remained strong. Additionally, Brazil saw significant growth in animal processing volumes, fueled by high domestic consumption.
In financial management, JBS generated 5.5 billion reais in free cash flow, which reduced its debt levels, said CFO Guilherme Cavalcanti. This financial stability allows JBS to sustain its growth plans. For the first time, JBS surpassed 100 billion reais in total quarterly revenue. ($1 = 5.4568 reais)
(Reporting by Roberto Samora; Additional reporting by Andre Romani; Writing by Stefanie Eschenbacher; Editing by Brendan O’Boyle and Stephen Coates)
Original Story https://www.livemint.com/news/jbs-posts-profit-as-chicken-and-pigs-make-up-for-beef-slump-11723589984311.html
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