JBS results: American unit success pushes overall revenue growth
The meat firm highlighted that JBS USA’s beef and pork units, as well as Pilgrim’s Pride contributed towards its growth, with net revenue up 2.9%, 5% and 10.8% respectively compared to the previous year.
JBS Beef’s result was boosted by the company’s focus on product diversification and increasing demand in the international markets. JBS Beef operations grew both in revenue and volume terms in export markets.
According to the US Department of Agriculture (USDA), US export revenue grew by 21.6% when compared to its Q1 results for 2017, with sales to Japan, South Korea and Hong Kong increasing collectively by 30% in the period.
Focus on selling products in Colombia and Central American countries contributed towards sustainable business margins for JBS Pork, which totalled US$ 1.466 million (m) compared to US$ 1.396m in the previous year.
USDA added that US pork export revenues increased by 7.8% during the quarter.
Pilgrim’s Pride’s results, including Moy Park, were prompted by increases in prepared food volumes and average sales prices, including a significant growth in production of organic products. It added that its Mexican unit’s production “performed above expectations” following further increases in volume.
Meanwhile, JBS’ Brazilian units did not follow suit. Seara’s net revenue fell by 2.7% from R$4.085m to R$3.974m as a result of declining chicken prices across the Brazilian market.
Volume reductions as a consequence of the sale of assets in Argentina, Paraguay and Uruguay impacted JBS Brazil’s net revenue results, which fell 4.7% from R$6.211m to R$5.919m compared to the previous year.
Overall results for the quarter included a 16.5% rise in gross profits and adjusted EBITDA was up by 30.3%. However, operating income was down 30.3% from R$640.7m to R$467.8m.
JBS was affected by currency fluctuations and sales of assets as part its divestment plan in its year-on-year results, which saw the company underperform overall.
