In spite of higher feed prices and a costly trucker strike, JBS’ Seara unit reported a 1.1 percent year-over-year increase in net revenues for the 2018 fiscal year.
JBS, a diversified animal protein company and the largest poultry company in the world, released its financial results for the 2018 fiscal year on March 29.
Speaking during a conference call with investors, JBS Global Chief Financial Officer (CFO) Guilherme Cavalcanti, reported that is Brazil-based poultry subsidiary, Seara, achieved net revenues of BRL17.7 billion (US$4.57 billion) for the year.
“These results were impacted by the increase in raw material costs, such as corn and soy meal and by the nationwide truck drivers’ strike in Brazil, factors that are not expected for 2019,” said Cavalcanti, who was appointed as the company’s global CFO in December 2018.
Cavalcanti said Seara’s strategy during 2018 was centered on strengthening its positioning to align with customers’ preference by focusing on delivering excellence, quality and product innovation with national and international recognition. The company was able to increase household penetration to 77 percent in 2018 with a 75 percent repurchase rate in the same period.
Demand in Asia aids Seara
Strong international demand, particularly from Asia, positively contributed to Seara’s product price in international market, Cavalcanti said, with grain prices appearing to be moving forward with a better supply and demand balance.
Overall 2018 financial results for JBS
JBS, as a whole, reported a net revenue of BRL 181.7 billion (US$49.7 billion) for the fiscal year.
For the fourth quarter, JBS reported a net revenue of BRL47.3 billion (US$12.2 billion), a 10.7 percent increase when compared to the fourth quarter of fiscal year 2017.
Financial results for Pilgrim’s Pride, a JBS poultry subsidiary with operations in the U.S., Mexico and Europe, were reported in February. Pilgrim’s Pride is headquartered in Greeley, Colorado.
