JBS multiplies third-quarter profit on Brazil pork, chicken unit
Chicken, pork offset US beef business challenges
15 November 2024
2 minute read
By: Brazil's JBS, the world's largest meatpacker, on Wednesday posted a 3.84 billion real net profit for the third quarter, multiplying it by more than six times from a year earlier and helped by its pork and chicken business in Brazil, reported Reuters.
The quarterly profit landed just above the 3.73 billion reais expected by analysts polled by LSEG.
Net revenue increased 21% to 110.5 billion reais, slightly topping the 107.3 billion reais expected by analysts.
In the earnings report, JBS said that Seara, its chicken and pork processing unit in Brazil, posted record profitability on strong demand worldwide and favorable costs for grains, which it uses to feed the animals.
According to JBS, Seara's performance more than offset challenges faced by the company in its US beef business, which represents almost one third of its total net revenue.
Chief Executive Gilberto Tomazoni told Reuters that the results - which included a double-digit EBITDA margin - showed the importance of having a diversified business.
JBS' adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 11.9 billion reais, climbing 120% year-on-year and beating analysts' expectations of 10.1 billion reais. The adjusted EBITDA margin rose almost 5 percentage points from a year earlier to 10.8%.
Tomazoni said the supply scenario in the United States for cattle may continue to be challenging in 2025, with improvement likely coming the year after.
