March 23, 2022

JBS SA earns US$1.31 billion in Q4 2021, surpassing analysts' expectations

Brazilian major meatpacker JBS SA earned US$1.31 billion in Q4 2021, surpassing analysts' expectations thanks to exports to China, Reuters reported.

The company's meat exports to China made up more than a quarter of the company's overall exports in 2021.

JBS Q4 JBS recorded consolidated net revenue of BRL 97.2 billion (~US$19.69 billion; BRL 1 = US$0.20). This was 27.8% higher than the same period the year prior.

The company's net revenue last year hit BRL 350.7 billion (~US$71 million), citing good performance of its beef and pork businesses in the US, and the resilience of its poultry operations there.

Pilgrim's Pride, a major chicken producer in the US owned by JBS, said they faced a challenging and volatile market due to rising costs because of soaring costs, supply chain disruptions, labour shortages, and the COVID-19 pandemic.

JBS recorded a revenue growth of 5.1% from the same year-ago quarter in Brazil. This was despite a 3% drop in cattle processed due to a shortage of animals for slaughtering, and the China imposing a temporary suspension of Brazilian beef imports between early September to mid-December 2021.

The company said beef demand in the US was above supply capacity, benefiting its domestic and export business. JBS obtains most of its total revenue from the US.

In Asia, demand for US beef remained strong that the overall volume of US beef exports to the region surpassed exported volumes by more than 16% compared to 2020.

JBS said China is the third largest destination for US beef exports.

-      Reuters