May 14, 2021
JBS reports profitable Q1 thanks to strong US meat operations
The world's biggest meatpacker, JBS, returned to profitability in the first quarter of this year thanks to the strong performance of its meat operation in the United States, the company said in its latest earnings statement, Reuters reported.
JBS reported a net profit of BRL 2 billion (~US$377 million; BRL 1 = US$0.19) in the first quarter ended March 31, compared to a BRL 5.93 billion loss (~US$ 1.11 billion) in the same period in 2020.
The company said its operating performance in the United States was exceptionally good, thanks to strong meat demand as restaurants have begun to reopen following the COVID-19 pandemic.
JBS also said there was increased exports from the United States to Asian countries.
Margins at JBS' Seara food division in Brazil was affected by high feed prices, declining from 16.9% in 2020 to 11.9% this year as soymeal and corn prices surge to record levels recently.
JBS reported a BRL 3.5 billion (~US$659 million) cash burn in the first quarter following a settlement with authorities in the United States for corruption and antitrust fines that amounted to BRL 1.1 billion (~US$207 million) in the first quarter of this year.