JBS’s Seara experiences international sales growth despite Newcastle Disease outbreak

BRAZIL – Brazilian meat processor JBS has reported an increase in international revenue for its Seara division in the third quarter of fiscal year 2024, despite challenges linked to a Newcastle disease outbreak in July.

JBS confirmed that the outbreak affected a flock in the state of Rio Grande do Sul, which was being raised for Seara operations. 

The disease prompted trade restrictions, yet Seara’s export revenue rose by 14% year-over-year, reaching US$1.2 billion. 

According to JBS, the revenue increase was achieved by reallocating production to unaffected regions that continued to meet export requirements.

The World Organisation for Animal Health (WOAH) identified the outbreak in a commercial broiler flock involving 14,400 birds. 

JBS has now disclosed that the flock was linked to its Seara business. 

The company implemented containment measures, and the outbreak did not spread beyond the initial site. 

WOAH has since restored Brazil’s status as free from Newcastle disease.

Financial performance in the third quarter

Seara’s overall net revenue reached US$2.2 billion for the quarter, translating to a 5% growth compared to the same period in 2023. 

Domestic sales contributed approximately 45% of this revenue. 

The revenue increase is attributed primarily to higher product prices during the quarter.

However, when compared to the second quarter of 2024, Seara’s revenue experienced a slight decline of 1.3%.

JBS overall results

As a corporation, JBS posted net revenue of US$19.9 billion for the third quarter, representing a 6.4% increase from the same quarter in the previous fiscal year.

The company emphasized that despite external challenges, the ability to adapt production strategies has helped maintain a strong performance in its international markets, particularly for its Seara segment.

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