March 26, 2020

 

Brazil-based JBS reports 332% quarterly net income increase

 

The world's biggest meatpacker said the 332% surge in quarterly net profits, which beat projections by analysts, was due to added sales to China, reported Reuters.

 

In the company's earnings statement, it reported a 2.43 billion BRL (~US$482.5 million; 1 BRL = US$0.20) fourth-quarter net profit, which beat analysts' projections of 2.19 billion BRL (~US$435 million).

 

Gilberto Tomazoni, JBS chief executive officer said China will remain a key market as it is still grappling with domestic pork supply issues caused by the African swine fever.

 

Lockdowns in China due to the COVID-19-outbreak have eased, which may boost meat demand.

 

Tomazoni said the company is prepared for COVID-19 with its diversified production base and management seniority.

 

He added that there are plans to list JBS in the United States, not timeline was provided.

 

JBS reported a 5.67 billion BRL (~US$1.12 billion) in the fourth quarter before interest, taxes, depreciation and amortization, more than the 5.53 billion BRL (~US$1.09 billion) projected by analysts from Refinitiv.

 

The earning statement showed net revenues were at 57 billion BRL (~US$11.3 billion), a 21% rise.

 

JBS said its beef exports to China almost doubled, with 61% increase in volumes and 23% surge in average prices.

 

In Seara, the company's processed foods division, net sales reached 5.7 billion BRL (~US$1.13 billion) in quarter four, up 23.9% compared to the year prior because of increased domestic and foreign market demand.

 

-      Reuters