BRAZIL – JBS reported mixed results in its fiscal second quarter of 2024, with improvements in several business segments, including Pilgrim’s Pride, JBS USA Pork, and Seara, while continuing to face difficulties in its beef sector due to persistent challenges associated with the cattle cycle.
JBS CEO Gilberto Tomazoni emphasized the strength of the company’s diversified operations.
He highlighted that while the U.S. market remains difficult for the beef segment, JBS has seen positive outcomes from its beef businesses in Brazil and Australia, thanks to favorable conditions in those regions.
For the quarter ending June 30, 2024, JBS reported a 6.8% increase in net revenue, bringing the total to US$19.3 billion compared to the same period in 2023.
The company’s gross profit surged to US$2.97 billion, a significant rise from US$1.99 billion in the previous year, while net profit was reported at US$329 million.
The North American Beef segment of JBS saw a modest 3.1% increase in net revenue, totaling US$5.99 billion for the quarter.
However, the company acknowledged the ongoing pressure on profit margins due to the cattle cycle but noted that it remains focused on optimizing operations and protecting profitability.
This includes strategies such as improving pricing, refining the product mix, and enhancing plant efficiency.
On a brighter note, JBS’s poultry and pork divisions experienced strong performance, aided by lower grain prices and improved supply-demand dynamics in key markets such as the United States, Mexico, and Europe.
The US pork business, in particular, saw net revenues soar by over 21% to US$2.16 billion, up from US$1.77 billion in the same quarter last year.
The company attributed this growth to favorable market conditions and a continued emphasis on expanding its value-added product portfolio.
Pilgrim’s Pride, the poultry arm of JBS, exceeded market expectations with net revenue reaching US$4.55 billion, up 5.8% from US$4.3 billion in 2023.
The Seara segment, another key business of JBS, posted a net revenue of US$2.2 billion, marking a 6.7% increase from the previous year.
Additionally, the adjusted EBITDA margin for Seara saw a notable 13.3% improvement compared to 2023.
JBS’s operations in Australia also performed well, with revenue for the quarter reaching US$1.65 billion, reflecting a 9.5% year-over-year increase.
Overall, JBS’s exports for the quarter amounted to US$3.9 billion, representing a 2.4% increase from the second quarter of 2023.
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