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JBS Profit Flat Despite Record Revenue
26 Mar
Summary
- JBS reported a nearly flat net profit of $415 million for the quarter.
- Net revenue reached a record $23.06 billion, a 15% increase.
- Tighter cattle availability in the U.S. squeezed margins in its beef division.
JBS, the world's largest meat company, announced its fourth-quarter financial results. The company posted a net profit of $415 million for the October-to-December period. This figure represents a marginal increase of 0.5% compared to the same period in the previous year.
Despite the modest profit growth, JBS achieved a record net revenue of $23.06 billion, marking a 15% rise year-over-year. This revenue surge was primarily driven by historically high sales volumes in both its North American and Brazilian beef operations.
However, the company's largest revenue-generating segment, its North American beef division, experienced tighter margins. This was attributed to increased cattle prices in the United States resulting from limited cattle availability.
Overall adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 7% decline, settling at $1.72 billion. The adjusted EBITDA margin also decreased by 1.8 percentage points, reaching 7.4%.
