May 13, 2022
JBS posts Q1 profit of nearly US$1 billion
Major Brazilian meatpacker JBS SA posted a Q1 profit of BRL 5.14 billion (~US$1 billion; BRL 1 = US$0.19), a 151% increase, surpassing projections thanks to its strong US business, Reuters reported.
The company's net sales was 20.8% up at BRL 90.8 billion (~US$17.6 billion), but in its financial statement, it said it remains affected by soaring worldwide grain prices, Brazil's sluggish economy, and declining pork exports to China.
North American beef operations remained robust, with net revenue up nearly 22% attributable to strong domestic demand, the revival of food service channels, and good retail sales, which also helped JBS' poultry business in the area. The US is a significant export platform for JBS.
Despite the slowness of some US port operations during the quarter, JBS said beef export volumes from the nation increased by more than 6%.
The company said Asia remains the most significant location for US beef exports, particularly China, which boosted beef import volumes by over 62% during this period.
In contrast, the firm said that US pork shipments to China have decreased, and that the US is currently the fifth largest pork exporter to China.
JBS said US Pork processors struggled as China recovered from African swine fever and may now be able to meet more of its own pork demand.
Despite a 5% decline in cattle processing due to China's temporary restriction on select Brazilian beef exporters, JBS's beef unit in Brazil was able to increase sales by 24.2% last quarter.
A rise in the price of domestic cattle, as well as a drop in local beef consumption, had a detrimental impact.
The company said about its Brazilian Seara processed foods division, that soaring corn and soymeal prices used as livestock feed were offset partly by the company's ability to raise product prices.