JBS Exceeds Expectations Despite Market Challenges
In a notable first-quarter turnaround, JBS achieved a profit of $310 million, reversing the losses from the previous year.
Brazil-based JBS is one of the world’s largest food companies, processes beef, pork, and other products, playing a vital role in supplying essential proteins globally.
Analysts had predicted a profit of only $131 million, which the company greatly surpassed.
Revenue climbed by 3% to R$ 89 billion ($17.28 billion), driven by stringent cost controls and strategic improvements, especially in the Seara division.
Facing U.S. beef market challenges, JBS still managed a 26% rise in EBITDA to R$ 6.4 billion ($1.24 billion).
This surge expanded the company’s margin to 7.2%, reflecting significant growth from the previous year.
Simultaneously, JBS decreased its leverage from 4.42 to 3.66 and closed the period with a net debt of $15.9 billion.
Pilgrim’s Pride, a subsidiary in the U.S., reported strong results, aided by reduced grain costs which boosted margins.
Seara significantly improved profitability, benefiting from favorable market conditions and internal efficiencies. It raised its EBITDA margin to 11.6% during a typically weak quarter.
The company credits last year’s broad initiatives for these improvements, which boosted operational efficiency and balanced supply and demand.
These efforts have set Seara up for a positive outlook in 2024.
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