January 30, 2008

 

World's top beef company expects US$14 billion in sales this year
 

 

Brazil's JBS S.A. on Monday (January 25, 2008) announced its expected financial results for fiscal 2008, ending Dec. 31 in its guidance for 2008.

 

The report also warned of the possible impacts of the new tracking system rules to be imposed by the EU.

 

The top beef producer and exporter expects revenues of 25.5 billion Brazilian reals (about US$14.3 billion) this year.

 

The amount is about six times more than the company reported in revenues in 2006, the year before its acquisition of US Swift & Co.

 

JBS S.A became the world's largest beef producer and exporter after acquiring Swift & Co. in the US last year.

Nearly 60 percent of the revenue is expected to come from the US while 22.3 percent is expected to come from Brazil. Australia  is expected to account for 13.7 percent while Argentina is expected to account for 5.1 percent.

 

JBS processes, packs and distributes fresh, processed and chilled beef.

 

The Company's operations include 22 plants located in 9 Brazilian states, 5 plants located in 3 Argentinean provinces, 8 plants in United States and 4 plants in Australia.

 

The company fresh beef division in Brazil is expecting a 15-percent rise in margins for EU countries but a 10-percent drop in exports to other countries. Margins for the domestic market are expected to drop 15 percent.

 

On the other hand, its processed beef division expects export margin to climb 15 percent while domestic margins climb 10 percent.

 

Margins for beef exports from JBS Argentina to the EU is expected to climb 20 percent.