US again boosts JBS results

Once again, the US has proven why JBS is less and less dependent on Brazil – and in times of soaring costs and a Chinese embargo, this is not bad news for shareholders. The country’s largest private company – with annual sales of nearly R$330 billion – the Batista brothers’ company recorded one of the best third quarters in the company’s history.

Driven by the strong American demand for beef, JBS achieved a profit of R$7.6 billion in the period, more than double the Q3 2020 result, when the company achieved a profit of R$3.1 billion. Using the same basis of comparison, net revenue increased 32.2%, reaching R$92.6 billion. Currently, Brazil accounts for 25% of the company’s revenues.

In Brazil – where the Seara and Friboi divisions are located -, the business once again showed the weight of costs (of feed and cattle). In the quarter, Seara’s Ebitda dropped 10.2%, to R$984 million. With that, the Ebitda margin of the chicken, pork, and processed food business fell 5.5 points, to 10.2%. At Friboi, the Ebitda margin fell 1.4 points, to 6.1%. In this case, the Chinese embargo – announced at the end of the quarter – has not yet had an effect, and will likely bring down the result of the Brazilian beef business in the fourth quarter.

It is said that the Chinese embargo will have a significant effect on Friboi, as China accounts for 50% of the company’s exports or a quarter of the division’s revenue. With no destination for the meat that would go to China, JBS reduced slaughter in Brazil. However, this division only represents a fraction of the group – 15%.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/agronegocios/noticia/2021/11/11/eua-voltam-a-impulsionar-resultados-da-jbs.ghtml

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