By Roberto Samora
SAO PAULO (Reuters) – Brazil’s JBS SA (OTC:), the world’s largest meatpacker, announced on Tuesday that its chicken and pork divisions, including Pilgrim’s Pride (NASDAQ:) in the U.S., JBS USA Pork, and Seara in Brazil, were the key drivers behind the company’s improved results for the second quarter.
The strong performance of these divisions offset the decline in the Beef USA segment, which contributes about a third of JBS’ revenue, as indicated in the quarterly results.
JBS reported a net profit of 1.72 billion reais ($315.2 million) for the quarter, falling short of LSEG analysts’ forecast of 2.02 billion reais but marking a return to profitability compared to the same quarter last year.
Adjusted EBITDA for the quarter from April to June stood at 9.88 billion reais, driven by favorable supply and demand dynamics, lower grain prices for animal feed, and operational enhancements, according to Gilberto Tomazoni, JBS’ global CEO.
Tomazoni highlighted the progress made by Seara, the company’s processed food, poultry, and pork unit in Brazil, stating that while improvements have been implemented, further adjustments are planned for continued growth.
He also emphasized the significance of the dual share listing strategy for unlocking value in the U.S. market, pending approval from the U.S. Securities and Exchange Commission (SEC).
Exports to China may have declined, but exports to other destinations such as the United States, Chile, and the Middle East remained stable, with domestic consumption surpassing exports, Tomazoni noted.
JBS’ free cash generation increased to 5.5 billion reais in the second quarter, allowing for debt reduction and supporting the company’s growth initiatives, according to Guilherme Cavalcanti, CFO.
Total revenue for the first time exceeded 100 billion reais in a quarter.
($1 = 5.4568 reais)
