Brazilian meat and poultry company JBS SA has decided to not pursue any new acquisitions in 2015 and instead focus on plans to finalize the acquisition of an Australian company, as well as concentrate on its U.S. pork operations and processed foods division, CEO Wesley Batista said.
Between BRL2.5 billion and 3 billion (US$806 million and $967 million) in capital investment will be needed in 2015 to support the strategy, Batista said.
"We have many fruits to harvest," Batista said as the company released its fourth quarter earnings on March 11.
JBS plans to finalize its $1.25 billion purchase of Australian processed foods maker Primo Group. The deal, announced in November and recently given clearance by the Australian Foreign Investment Review Board, is an opportunity to increase sales in Asian markets.
The company also has more synergies to reap from the 2013 purchase of Brazilian poultry producer Seara, Batista said.
JBS net income up in FY 2014, Q4
During a JBS earnings conference call, Batista reported a strong performance for the company for fiscal year 2014 and the fourth quarter of the year. For the quarter, JBS posted a net income of BRL618.8 million (US$197.6 million), a year-over-year improvement of 340 percent. It’s net income for all of 2014 was BRL2 billion (US$638.7 million), up 120 percent from fiscal year 2013.
Net revenues for Pilgrim’s, the North American poultry unit of JBS, were reported at US$2.1 billion for the fourth quarter, a three percent improvement when compared to the same period of the previous year. Net revenues for all of fiscal year 2014 were up 2 percent at US$8.6 billion.