JBS surpasses analyst expectations
Brazil-based meat and tannery group JBS reported a first-quarter net profit of 1.64 billion reais ($319.74 million), exceeding analysts' forecasts by a wide margin, Reuters reports, citing the company's earnings statement.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) reached 6.4 billion reais ($1.25 billion), primarily driven by strong performances in the US pork business and Brazilian beef and processed foods divisions.
Analysts had predicted net profit at 869.1 million reais ($170 million) and EBITDA at 5.2 billion reais ($1 billion), but JBS surpassed these estimates. Global net revenue increased by 2.8% to 89.1 billion reais ($17.4 billion) , boosted by heightened beef demand in Brazil.
The company attributed its success partly to a rise in the average price for wholesale pork cuts in the US and increased international pork sales, notably to Mexico, South Korea, and Colombia. However, beef margins in the North America division were pressured by the livestock cycle.
JBS's Brazil beef business saw a nearly 17% annual increase in net sales, while its Seara processed foods division in Brazil maintained stable revenue of 10.3 billion reais ($2 billion). Additionally, the division's EBITDA margin improved significantly compared to the first quarter of 2023, driven by lower grain costs and improved supply dynamics.
