JBS: Africa, Middle East grow as destinations

Africa and the Middle East stepped up their share as export destinations of Brazil’s JBS, the world’s largest meatpacker. The company reported that the region accounted for 10.6% of the revenue from exports in the second quarter of the last year and moved up to 15.7% in the same period this year.

Exports of JBS grossed USD 4.9 billion from April to June 2024, up 2.4% from USD 4.8 billion in the same period last year. The company’s largest market was the Greater China (considers China and Hong Kong) at 20.5%, followed by the United States at 16.1%, and then Africa and the Middle East. The latter two increased their shares – the US was at 12.7% in the second quarter of 2023 – but China went down from 31%.

JBS highlighted the increase of beef exports, whose net revenue was driven by a 4% growth in revenue and 12% in volumes sold in the period. “Geographic diversification proved to be important in the export market, expanding sales to important regions, such as the Middle East, the United States, and the Philippines, among others,” the company said.

The company added that it is finishing construction of a new Seara facility in Jeddah, Saudi Arabia, which would quadruple the company’s breaded chicken production capacity in the country. The plant is set to open in November, with an investment of USD 50 million.

JBS’ net profit

The top highlight at the earnings release was the company’s net profit of USD 329 million, reversing the loss of USD 53.2 in the second quarter of 2023. The adjusted EBITDA reached: USD 1.9 billion, up 109.8% year on year, while the adjusted EBITDA margin reached 9.8%, up 4.8 percentage points year on year. Most of this comes from poultry and pork operations, which were benefited from lower grain prices and a better balance between supply and demand.

Source: ANBA

Sharing is caring!