For the second quarter of the 2024, JBS S.A. reports a 6.8% year-on-year increase in group net sales to US$19.3 billion. Net profit for the period was almost US$329 million, while substantial improvements were recorded in adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). EBITDA for the period was 110% higher than in the comparable period of 2023 at US$1.9 billion. This drove an increase in EBITDA margin from 5.0% one year ago to 9.8% for the latest quarter.
All JBS operations report higher net sales for quarter
By net sales, JBS Beef North America is the largest of the group, contributing US$6.0 billion to overall net sales over the reporting period. Despite this year-on-year increase of 3.1%, profitability for this operation was down — by 67% in EBITDA to US$29 million, and by 1.0 percentage points in EBITDA margin to 0.5%.
For Pilgrim’s Pride Corp., net sales for the quarter were US$4.6 billion, a year-on-year increase of 5.8%. At close to US$783 million, EBITDA was more than double that reported for the comparable period, and EBITDA margin was 8.5 percentage points higher at 17.2%.
At US$3.0 billion, JBS Brasil achieved a 5.5% increase in net sales for the three-month period just ended. EBITDA was almost 66% above the figure of a year ago at US$226.3 million, while EBITDA margin was improved by 2.8 percentage points to 7.6%.
Both JBS USA Pork and Seara had net sales recorded at US$2.2 billion for the latest quarter. For the U.S. pork operation, this represented a year-on-year increase of 21.7%. At more than US$240 million, EBITDA was 208% higher than the comparable period, while EBITDA margin improved by 6.7 percentage points to 11.1%. For JBS’s Brazilian poultry business Seara, net sales were up 6.7% year-on-year, which drove a 357% jump in EBITDA, and a more than 13-percentage point% improvement in EBITDA margin to 17.4%.
While JBS Australia had the lowest net sales for the quarter at US$1.7 billion, this business achieved one of the biggest year-on-year improvements for JBS at 9.5%. At around US$226 million, EBITDA was 57% higher than a year ago, and EBITDA margin rose by 4.2 percentage points to 13.7%.
Future investment plans confirmed
In its quarterly fiscal report, JBS announced plans to increase production capacity in Saudi Arabia by a factor of four. Investment of US$50 million will be put into a new facility for breaded chicken products. It is scheduled to open in Jeddah in November of this year.
Furthermore, JBS is to invest AUD110 million (US$73 million) in its Australian salmon operation. A new hatchery there is expected to produce more than seven million fish.
CEO highlights success in JBS’s diversification
“We had a strong second quarter, once again showcasing the strength of our diversification strategy,” said JBS’s global CEO. Gilberto Tomazoni on the publication of the group’s second-quarter 2024 results.
As a result of the group’s global multi-protein platform, JBS has been able to mitigate natural cycles in its individual sectors of operation, and to maintain healthy cash generation, he said. To illustrate this point, Tomazoni highlighted that 75% of the group’s operating profit derived from its poultry and pork businesses, which include Pilgrim’s Pride, Seara, and JBS USA Pork.
According to the CEO, lower grain/feed prices and a better market balance have benefitted the group’s poultry and pork operations, particularly in the U.S., Mexico, and Europe.
As well as on-going rapid operational improvements, JBS is also putting in place enhanced commercial processes, according to Tomazoni.
More on JBS S.A.
With annual slaughterings of more than 4.4 billion chickens and turkeys, JBS S.A. is easily the largest poultry company in the world, according to WATTPoultry.com’s Top Poultry Companies survey. Furthermore, the same source puts JBS company Seara of Brazil second in the global rankings with production of more than 2.0 billion poultry, and U.S.-based Pilgrim’s Pride is in fifth position with an annual output of 1.5 billion birds.
Over the three months of the latest reporting period, Wesley Batista and Joesley Batista are to rejoin the board of JBS S.A.
In May, strong first-quarter revenue growth was reported for Seara, JBS’s South American poultry operation.
At the end of July, JBS announced its latest plan to open a chicken nugget plant in Saudi Arabia.
