Year on year, JBS S.A. has achieved double-digit increases in net revenue, adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), and net income, according to the group’s second-quarter results just released.
For the JBS group overall, reported net revenue is up almost 27% year-on-year at 85.6 billion real (BRL; US$60.08 billion). At BRL4.4 billion, reported net income was around 30% higher than the same period of 2020. As a result, adjusted EBITDA increase by just over 10% to BRL11.7 billion. However, the group experienced a drop of two percentage points in adjusted EBITDA margin to 13.7% for the quarter reported.
Mixed fortunes for JBS divisions
While the group’s overall performance in the second quarter is described by the Global chief executive officer Gilberto Tomazoni as “robust,” there were market variations between its geographical and business divisions.
Tomazoni commented that market conditions in the period had favored JBS’s North American enterprises.
In terms of net revenue, JBS USA Beef delivered the highest revenue — BRL35.7 billion — for the three-month period. This represents a year-on-year increase of almost 19%, while EBITDA was up by 13% at BRL7.1 billion.
Achieving the greatest improvement in EBITDA was the PPC division, which includes poultry companies Pilgrim’s Pride and Moy Park, as well as Just BARE Chicken and Del Dia. For this business, EBITDA was up by more than 125% at BRL2.5 billion. This pushed up EBITDA margin by 5.7 percentage points to 13.1%.
Despite a 46% increase in net revenue to BRL12.5 billion, negative developments in EBITDA and EBITDA margin were reported for JBS Brazil for the second quarter.
Similar trends occurred for JBS USA Pork and SEARA (the Group’s Brazilian poultry business). Net revenue for these divisions for the quarter were BRL10.7 billion and BRL8.9 billion, respectively. These equate to year-on-year increases of 25.6% and 39.8%, respectively.
Business diversification strategy in progress
Long-term, JBS S.A. continues its investment strategy aimed at extending its diversification, both geographically and in terms of its portfolio, commented Tomazoni.
Among the recent developments in this strategy have been an expansion at Seara in Brazil, and a new Italian specialty meats plant in the U.S.
Among the group’s recent acquisitions has been the Meats and Meals businesses of Kerry Consumer Foods in the United Kingdom and Ireland, and Rivalea in Australia.
Furthermore, JBS has been investing in alternative proteins. Its acquisition of Vivera in Europe, the creation of Planterra in the U.S., as well as the development of the Incrivel brand in Brazil demonstrate a deepening commitment in the field of plant proteins, according to Tomazoni.
At the end of last month, it was announced that JBS is to acquire Huon Aquaculture Group — Australia’s second largest salmon producer. The move is still undergoing regulatory approval.
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