JBS: Seara net revenue, volume down in Q2 2018

The Seara unit of JBS saw its net revenue decline by 5.4 percent on a year-over-year basis for the second quarter of the 2018 fiscal year.

Roy Graber Headshot
Photo courtesy of JBS
Photo courtesy of JBS

The Seara unit of JBS saw its net revenue decline by 5.4 percent on a year-over-year basis for the second quarter of the 2018 fiscal year.

Seara’s net revenue for the quarter were reported at BRL4.09 billion (US$1.05 billion), which was down from the BRL4.3 billion (US$1.1 billion) reported for the second quarter of fiscal year 2017, but an improvement from the BRL3.97 billion ($US1.02 billion) reported for the first quarter of 2018.

While the net revenue declined, so did the total volume, which dropped by 10.6 percent. The reduced volume came as a result of a 19.2 percent decrease in exports, the company reported. Exports were down largely due to a trucker strike, as well as the temporary suspension of the Russian market for Brazilian pork.

That trucker strike, which took place in May, is estimated to have caused a BRL112.9 million (US$29 million) loss to the Seara unit.

Several days ago, fellow Brazil-based meat and poultry company BRF reported that the trucker strike and trade restrictions also hurt its profits.

Feed ingredient costs

JBS reported that the unit was also impacted by higher corn and soybean costs during the second quarter. A portion of those cost increases, the company said, was passed on to sale prices, especially in June. However, the impact of those elevated costs was partially minimized by the fact that the average U.S. dollar exchange rate was 12.5 percent higher than they were in the second quarter of the 2017 fiscal year.

JBS anticipates that corn prices will remain high, mainly as a result of a smaller corn harvest in Brazil.

Other business unit net revenues

JBS reported it Pilgrim’s Pride unit, which already reported its financial results, saw its net revenue increase by 3.1 percent on a year-over-year basis, while the JBS USA Beef unit’s net revenue increased 1.3 percent.

The JBS Brazil and JBS USA Pork unit both saw declines in net revenue, dropping by 6 percent and 6.3 percent, respectively.

Page 1 of 1576
Next Page