August 21, 2023

JBS SA reports Q2 net income loss amid global meat market challenges

Major global meat company JBS SA has disclosed a net income loss of BRL 263.6 million reals (~US$53.2 million; BRL 1 = US$0.20) for the fiscal second quarter that concluded on June 30, 2023, due to an oversupply within the global poultry market and tighter profit margins within its beef operations in the US, Meat + Poultry reported.

The company's consolidated net revenue for the first quarter experienced a decline of 3.6%, amounting to BRL 18.1 billion (~US$3.6 billion) compared to the first quarter of 2022.

Despite these challenges, Gilberto Tomazoni, the global chief executive officer of JBS, emphasised the company's ongoing efforts to enhance efficiency in its major markets of Brazil and the US.

He said that the poultry supply is projected to become more balanced in the coming months, potentially influencing sector prices positively. Tomazoni also highlighted the company's ability to incorporate the decrease in corn prices into its cost structure, which benefits its pork business.

Taking a closer look at the business segments in the second quarter, JBS Beef North America reported net revenue of US$5.81 billion in 2023, indicating a notable 5.2% increase compared to the same period in 2022.

JBS USA Pork experienced a decline in revenue, reporting US$1.78 billion in the second quarter, which represents a decrease of 15.8% compared to the same quarter last year. The company pointed out that wholesale pork prices observed a significant year-over-year drop of approximately 21% during the second quarter of 2023.

Regarding its subsidiary, Pilgrim's Pride Corp, the poultry operation posted US$4.30 billion in revenue for the second quarter, indicating a decrease of 7% from the same quarter in 2022.

-      Meat + Poultry