JBS Q2 results: Truckers strike impacts Brazilian division sales

By Ashley Williams contact

- Last updated on GMT

For the quarter, net revenue for Seara totalled R$4,088.7m, down 5.4%
For the quarter, net revenue for Seara totalled R$4,088.7m, down 5.4%
The Brazilian truckers’ strike in May has resulted in JBS’ business unit Seara generating a loss of R$112.9m in its Q2 results.

For the quarter, net revenue for Seara totalled R$4,088.7m, down 5.4% compared to 2017’s second-quarter results, while its total volume fell by 10.6% due to lower exports from the truckers’ strike.

As well as the truckers’ strike, the business’ sales were also affected by the temporary suspension of the Russian market for Brazilian pork.

In the domestic market, volumes were less impacted by the strike, which only fell by 1.7%.

The Brazilian truckers’ strike, which was caused by rising fuel prices, resulted in several major meat processors​ across the South American country halting production. Following the strike, Brazil’s agriculture minister Blairo Maggi met with Brazilian poultry farmers​ to find out about the size of the losses and their credit needs.

Higher industry supply, due to increased production volumes and lower Brazilian exports, also hit Seara’s poultry sales, which decreased by 4.3%.

As well as Seara, JBS Brazil’s net revenue plummeted by 6% compared to last year’s second quarter, due to the sale of its beef operations in Argentina, Paraguay and Uruguay in June 2017.

In contrast, JBS’ US divisions for beef and pork saw steady growth due to product demand. JBS USA Beef’s net revenue grew by 1.3% in comparison to last year’s results, thanks to solid economic fundamentals and supportive retail and foodservice channels, said the company.

An increase in domestic pork supply, contributing to a reduction in sales prices, resulted in JBS USA Pork’s volumes growing by 4.6% despite net revenue being down by 6.3% compared to the previous quarter.

Despite the Brazilian unit’s struggles, the business’ consolidated results showed steady growth. Net revenue increased by 8.4% compared to its second-quarter results in 2017, while gross profit totalled R$7bn, a 13.5% rise.

Related topics: Financial, Brazil, Poultry, Pork, Beef

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