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JBS net revenues up by 7.7% in 2Q22

19 | 08 | 2022

JBS net revenues up by 7.7% in 2Q22
The more favorable performance by Seara and Pilgrim’s Pride as well as the recovery of the margins in the beef industry in Brazil and Australia, boosted the global results of JBS in the second quarter of 2022. The Company saw a 7.7% increase in its net revenues in comparison with the same period of 2021, to R$ 92.2 billion. The company ended the quarter with a net result of R$ 4 billion. “This quarter was important proof, once again, that our strategy of diversification in terms of geographical location and proteins is the right one. We have successfully prepared for the upturn in the beef cycle in the USA and our results have remained strong thanks to our significant participation in every leading type of protein and our presence in the main consumer markets, in addition to our strong brands”, points out Gilberto Tomazoni, Global CEO of JBS. The business results of Pilgrim’s Pride showed significant growth, with net revenues of R$ 22.8 billion thanks to the higher demand for poultry, especially in the United States and Mexico, following the recovery in the foodservice sector and consolidation of demand from the retail sector for value-added products and prepared meals. The performance of JBS USA Beef has remained healthy, with net revenues of R$ 27.2 billion, and with profitability exceeding historical levels. In turn, JBS Australia has embarked on a more positive cycle, with the increase in the supply of cattle, although prices remain high. The margin of the JBS Australia business rose from 4.4% to 6.3% YoY. The company’s results in Brazil are also expanding and have become increasingly important in the aggregate global figures. JBS Brazil, the umbrella company for the beef business in the country, posted net revenues of R$ 14.1 billion, capturing the potential for growth with greater availability of raw materials and the results of loyalty schemes targeting key customer for the business. Lead by Friboi, JBS Brazil saw its margin jump from 3.4% to 5.7% when comparing the second quarter of 2022 with the same period of 2021. Seara also posted a significant performance in the second quarter of 2022. The business margin grew from 9.0% to 14.1% year-on-year, achieving the third-best margin its history. This result is the product of careful management of the product mix, firmly establishing the company as synonymous with quality on the domestic market, while capturing opportunities on the overseas market, with access to important consumer countries. On the domestic market, Seara has increased its market share in key segments, especially in value-added products and prepared meals. Today, the company is among the five brands most chosen by Brazilian consumers, according to the tenth edition of Brand Footprint Brazil 2022, a ranking drawn up by Kantar and published in April of this year. On the overseas market, Seara has been establishing its position as a global leader in exports of chickens and one of the leading players in pork sales. Thanks to this status, the company has been expanding its presence in key markets such as Europe and the Middle East, while obtaining new certifications to increase access to key centers like the United States and Mexico. In the second quarter of 2022, Seara posted net revenues of R$ 10.7 billion. Financial health continues to improve In addition to the excellent operating result, JBS also ended the quarter in a comfortable financial condition. The Company’s leverage remained under control at 1,65x in US dollars and 1,64x in Reais at the end of June 2022. The company also closed the quarter with net debt of R$ 78.1 billion and cash and cash equivalents of R$ 30.9 billion, including revolving credit facilities in the United States. This positive picture has been recognized by the global capital markets. In June, S&P raised the risk rating of JBS to investment grade, the rating rising from BB+ para BBB-. As a result, JBS has consolidated its Full Investment Grade status, having been rated investment grade by S&P, Moody's and Fitch, the leading market agencies. Progress in the ESG agenda In the second quarter, JBS pushed ahead with its ESG strategy and the commitment to be Net Zero by 2040. The period saw the launch of No Carbon, the first company to lease 100% electric trucks in Brazil, operating a refrigerated vehicles fleet that already serves the operations of JBS nationwide. Where the circular economy is concerned, the Mafra (SC) unit of JBS Biodiesel was inaugurated and the activities of Campo Forte came on stream, the organomineral fertilizer company that uses waste from the Company’s production. The evolution in sustainable livestock farming continues to be a fundamental priority. Together with Silvateam, the Company organized the first Forum on Methane in Livestock Farming in Brazil, reflecting its strategy of fostering the global reduction in enteral methane emissions. Overall, JBS has invested R$ 1.5 billion in expanding and modernizing our manufacturing units at the global level, having allocated around R$ 450 million to ESG initiatives. In the United States, construction is in progress of the Center for Innovation in Feedlots at the University of Nebraska, financed by JBS USA, for research into initiatives that reduce emissions in livestock farming. This project is supplemented by the partnership between JBS USA and Colorado State University in the study into carbon sequestration technology. For further details about the results of JBS in the second quarter of 2022, the release filed with the CVM is attached.
The 2Q22 results were important to prove, once again, the success of JBS’s strategy of geographic and protein diversification. [JBS]

The more favorable performance by Seara and Pilgrim’s Pride, as well as the recovery of the margins in the beef industry in Brazil and Australia, boosted the global results of JBS in the second quarter of 2022. The Company saw a 7.7% increase in its net revenues in comparison with the same period of 2021, to R$ 92.2 billion. The company ended the quarter with a net result of R$ 4 billion.

“This quarter was important proof, once again, that our strategy of diversification in terms of geographical location and proteins is the right one. We have successfully prepared for the upturn in the beef cycle in the USA and our results have remained strong thanks to our significant participation in every leading type of protein and our presence in the main consumer markets, in addition to our strong brands”, points out Gilberto Tomazoni, Global CEO of JBS.

The business results of Pilgrim’s Pride showed significant growth, with net revenues of R$ 22.8 billion thanks to the higher demand for poultry, especially in the United States and Mexico, following the recovery in the foodservice sector and consolidation of demand from the retail sector for value-added products and prepared meals. The performance of JBS USA Beef has remained healthy, with net revenues of R$ 27.2 billion, and with profitability exceeding historical levels.

In turn, JBS Australia has embarked on a more positive cycle, with the increase in the supply of cattle, although prices remain high. The margin of the JBS Australia business rose from 4.4% to 6.3% YoY.

The company’s results in Brazil are also expanding and have become increasingly important in the aggregate global figures. JBS Brazil, the umbrella company for the beef business in the country, posted net revenues of R$ 14.1 billion, capturing the potential for growth with greater availability of raw materials and the results of loyalty schemes targeting key customer for the business. Lead by Friboi, JBS Brazil saw its margin jump from 3.4% to 5.7% when comparing the second quarter of 2022 with the same period of 2021.

Seara also posted a significant performance in the second quarter of 2022. The business margin grew from 9.0% to 14.1% year-on-year, achieving the third-best margin its history. This result is the product of careful management of the product mix, firmly establishing the company as synonymous with quality on the domestic market, while capturing opportunities on the overseas market, with access to important consumer countries.

On the domestic market, Seara has increased its market share in key segments, especially in value-added products and prepared meals. Today, the company is among the five brands most chosen by Brazilian consumers, according to the tenth edition of Brand Footprint Brazil 2022, a ranking drawn up by Kantar and published in April of this year.

On the overseas market, Seara has been establishing its position as a global leader in exports of chickens and one of the leading players in pork sales. Thanks to this status, the company has been expanding its presence in key markets such as Europe and the Middle East, while obtaining new certifications to increase access to key centers like the United States and Mexico. In the second quarter of 2022, Seara posted net revenues of  R$ 10.7 billion.

 

Financial health continues to improve

In addition to the excellent operating result, JBS also ended the quarter in a  comfortable financial condition. The Company’s leverage remained under control at 1,65x in US dollars and 1,64x in Reais at the end of June 2022. The company also closed the quarter with net debt of R$ 78.1 billion and cash and cash equivalents of R$ 30.9 billion, including revolving credit facilities in the United States.

This positive picture has been recognized by the global capital markets. In June, S&P raised the risk rating of JBS to investment grade, the rating rising from BB+ para BBB-. As a result, JBS has consolidated its Full Investment Grade status, having been rated investment grade by S&P, Moody’s and Fitch, the leading market agencies.
 

Progress in the ESG agenda

In the second quarter, JBS pushed ahead with its ESG strategy and the commitment to be Net Zero by 2040. The period saw the launch of No Carbon, the first company to lease 100% electric trucks in Brazil, operating a refrigerated vehicles fleet that already serves the operations of JBS nationwide. Where the circular economy is concerned, the Mafra (SC) unit of JBS Biodiesel was inaugurated and the activities of Campo Forte came on stream, the organomineral fertilizer company that uses waste from the Company’s production.

The evolution in sustainable livestock farming continues to be a fundamental priority. Together with Silvateam, the Company organized the first Forum on Methane in Livestock Farming in Brazil, reflecting its strategy of fostering the global reduction in enteral methane emissions. Overall, JBS has invested R$ 1.5 billion in expanding and modernizing our manufacturing units at the global level, having allocated around R$ 450 million to ESG initiatives.

In the United States, construction is in progress of the Center for Innovation in Feedlots at the University of Nebraska, financed by JBS USA, for research into initiatives that reduce emissions in livestock farming. This project is supplemented by the partnership between JBS USA and Colorado State University in the  study into carbon sequestration technology.

For further details about the results of JBS in the second quarter of 2022, the release filed with the CVM is attached.

Escrito por: Oxigenweb

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