Despite impacts from the COVID-19 impacts, JBS reported a net revenue of BRL56.5 billion (US$7.7 billion) for the first quarter of the 2020 fiscal year, a 27.3% increase when compared to the first quarter of 2019.
All five of JBS’ business segments – Seara, JBS Brazil, JBS USA Pork, JBS USA Beef and Pilgrim’s Pride – saw year-over-year increases in net revenue, and all units except for JBS USA Beef saw double-digit growth on a percentage basis. Seara saw the biggest jump, rising 39% to BRL5.8 billion.
COVID-19 impact
JBS Global CEO Gilberto Tomazoni stated that the Brazil-based company did not see any major changes in the company’s processing operations for the first two months of the year, but once March rolled around and the COVID-19 pandemic intensified, things changed dramatically.
“In March, the last month of the quarter, we felt the first impacts of the pandemic on our sales, with reduced demand in the food service channel and increased demand in retail. Our team reacted quickly, migrating volume from one channel to the other. This demand migration took place in virtually all markets where we operate, with the only difference being the intensity and duration of the change. We are starting to see a recovery in food service demand in several markets,” said Tomazoni.
Tomazoni noted that JBS has implemented “more than 1,000 actions to provide a safe working environment” for the company’s workers. Among those measures are: temperature testing and outpatient services, extra provision of personal protective equipment including masks for every team member, expansion of cafeteria spaces and break areas, intensification of cleaning and disinfection of internal and external areas, and physical distancing.
The company recently approved a BRL700 million donation to combat the effects of the COVID-19 pandemic through public health, social assistance and scientific research and development channels, extending to all geographic regions which JBS serves.
Optimism for post-COVID-19 era
Tomazoni said the company is confident that the pandemic and the challenges it brings will eventually pass and that the company’s response to the adversity faces now will define the company going forward.
“When this is over, we will move on knowing that we have done our best to protect the health and safety of our team members, that we have fulfilled our mission to feed the world during the most challenging moment of our generation, and that we have stood side-by-side with society when we were needed most,” said Tomazoni.
View our continuing coverage of the coronavirus/COVID-19 pandemic.
