JBS ends 2022 with record net revenues of R$ 375 billion consolidating its position as a global food leader
21 | 03 | 2023
JBS, the global food company, ended the year 2022 with the highest revenue in its history, R$ 374.9 billion, which represents a growth of 6.9% in comparison with the accumulated revenues of 2021. This result consolidates JBS as one of the global leaders in food production. Despite a challenging global scenario, the company once again demonstrated the correctness of its geographic diversification and protein strategy and attained resilient EBITDA scores that reached R$34.6 billion in 2022, and free cash flow generation of R$2.1 billion in the year – a much higher result than its sector competitors.
“Despite the current challenging global economic scenario and the normalization of margins in the US beef market, we begin 2023 with a comfortable cash position, stable debt profile and no significant debt maturities in the short term. This condition allows us to navigate the moment we’re in now with ease and position ourselves well to prepare for future market opportunities. We trust in our diversified global platform,” highlights Gilberto Tomazoni, Global CEO of JBS.
The macroeconomic scenario has not prevented JBS from continuing to invest to expand its production capacity and modernize its operations. In 2022, JBS invested R$ 13.1 billion in the expansion of its assets and in acquisitions. With this, the company strengthens the paths for future growth, since these investments were focused especially on expanding production in value-added items. Seara’s expansion in Brazil, in addition to the new units of pork-based prepared foods and Italian specialties in the United States, are examples of this strategy.
“We have a lot of value to capture from our recent investments, with ample potential to strengthen our growth and cash generation. Our diversified platform, experienced team, constant innovation, and focus on operational excellence are strengths to add value and meet the needs of our customers and consumers,” says Tomazoni.
Financial Health
In 2022, JBS consolidated its position as Full Investment Grade, investment grade by the three main rating agencies – S&P, Moody’s and Fitch. This allows JBS to enjoy lower interest rate funding conditions and was essential for the successful liability management moves made by the company during the year.
Some examples of this strategy include the issuances of US$ 6 billion in Senior Notes and US$ 2.8 billion in CRAs (Certificate of Agribusiness Receivables), in addition to early payments of Senior Notes in the amount of approximately US$ 2.3 billion. With these moves, JBS lengthened its debt to the average term of 10 years, with cheaper annual cost fixed 4.8%. Furthermore, there are no covenants for the debts nor significant amortization in the coming years, which preserves cash.
The company closed the year with a very healthy leverage ratio of 2.29x in Reais and 2.26x in dollars. “We ended the year with R$13.2 billion in cash and we have US$3.2 billion available in revolving credit lines – equivalent to R$16.7 billion, considering the exchange rate at the closing of the year. With this, the Company’s total availability is of R$30 billion, more than three times the short-term debt,” says Guilherme Cavalcanti, CFO of JBS.
Our financial strength has allowed JBS to continue to create value for shareholders. In 2022, the company distributed R$4.4 billion in dividends and, considering the repurchase of R$2.8 billion in shares last year, provided a total return of 15%. The Return on Invested Capital (ROIC) was of 18%. Last year, JBS calculated a net profit of R$15.5 billion, a decrease of 24.5% compared to 2021.
Quarterly results
The fourth quarter was especially challenging, with seasonal and external issues negatively impacting the performance of JBS’ operations. The Company closed the period with Net Profits of R$2.3 billion (-63.7% YoY), Net Revenues of R$92.9 billion (-4.5% YoY), Adjusted EBITDA of R$4.6 billion (-65.2% YoY), and Free Cash Generation of R$1.3 billion (-77.3% YoY).
“Our global multi-protein platform, our competitive operating cost structure, the strength and agility of our experienced global team, and our robust financial conditions bring us the confidence and certainty that JBS will continue on its path of growth with value creation for our stakeholders, expanding our business and fulfilling our purpose of feeding the world with the best,” says Tomazoni.
Escrito por: Oxigenweb