JBS reported net income of BRL 5.14 billion for the first three months of the year, up 151.4% from the same period in 2021, making it the best first quarter in the company’s history, according to the financial statement released this Wednesday. thursday (11).
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) totaled R$ 10.08 billion, an increase of 46.7% compared to the range from January to March last year.
Net revenue reached R$90.9 billion in the period, an increase of 20.8% year-on-year. According to the company, the strong operating performance was driven by the JBS Beef North America unit and Pilgrim’s Pride. The consolidated adjusted Ebitda margin for the period was 11.1%.
“Chicken in the United States has grown a lot. The return of food service had an important impact on (American) demand for protein,” the company’s global CEO, Gilberto Tomazoni, told Reuters.
He stated that the company’s North American operations have strong domestic and foreign demand, mainly in the poultry and beef segments. During the quarter, and despite continued slowdowns at US ports, the company said exported beef volume was more than 6% higher than a year ago.
On the other hand, US pork sales to China have dropped, with the country now ranking fifth as the top supplier of this type of protein to the Asian country.
“China has recomposed its swine herd, which was already predicted. They have been greatly affected by African swine fever and imports are returning to normal levels,” said the CEO.
In the case of Brazil, which also has its main buyer of pork in China, Tomazoni said that the company is looking to offer pork protein in the domestic market or direct it to other markets, such as the Philippines, in addition to trying to open up Mexico.
For him, the scenario is different for beef, whose Chinese demand tends to sustain itself in a structural way, in line with the economic growth of the Asian country.
Tomazoni also highlighted a recovery in the supply of cattle in Australia, which made the adjusted Ebitda of JBS in the country jump 398%, to 445.2 million reais, with a positive trend for the course of the year.
Brazil
JBS’s beef unit in Brazil managed to increase sales by 24.2% in the last quarter, despite a 5% drop in cattle processing as China temporarily suspended some Brazilian beef exporters.
The rise in the price of domestic cattle weighed negatively, as did the drop in local consumption of beef.
Regarding the Seara food division in Brazil, the increase in corn and soybean meal prices was partially offset by JBS’ ability to increase product prices.
“Obviously, there is a scenario of rising grain costs, due to the war in Ukraine, low transit stocks… And what Seara has been doing is working on the things that we control, working internally in the acquisition of grains, etc. “, he said.
Source: CNN Brasil
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