November 12, 2020

JBS reports near nine-times increase in third-quarter net profit

Brazilian-based meatpacker JBS SA reported close to nine-times increase in its third-quarter net profit, surpassing market projections thanks to strong demand from China, the United States and its domestic market, Reuters reported.

Profit for the July to September period was BRL 3.133 billion (~US$581.2 million; BRL 1 = ?) compared to BRL 357 million (~US$ ) in the same period last year. Refinitiv's average compiled projections from three analysts was BRL 2.870 billion.

The company's net revenue increased 34% to BRL 70 billion, All of the company's business units recorded growth.

JBS said its US beef, pork and chicken businesses boosted its earnings, as well as its Brazilian Seara processed foods division. Seara also exports pork and poultry products.

The company said pork production in the US has returned to pre-pandemic levels, with prices set to increase above year-earlier levels because of strong demand in the US and from export markets.

JBS said it was able to increase pork exports to China, Mexico, and Canada from the US. Almost a third of its exports of meat was shipped to China.

The company said its poultry business is improving in Europe, as consumer demand steadily recovers from the COVID-19 pandemic.

In addition, JBS said its "Incrível" brand of vegan products was well-received in Brazil, reaching 60% market share.

-      Reuters