August 14, 2020
JBS second-quarter net profits almost two times higher than analysts' estimates
Brazilian-based meat packer JBS SA posted second quarter net profits close to two times higher compared to analysts' projections thanks to its strong beef and pork sectors in Brazil and the United States, Reuters reported.
JBS, the biggest meat packer in the world reported a BRL 3.38 billion (~US$629 million; BRL 1 = US$0.19) net profit for the second quarter of the year, close to double compared to analysts' BRL 1.8 billion (~US$335 million) estimates from a Refinitiv poll.
COVID-19 had impacted the meat packing industry, with JBS reporting several temporary closures of its beef plants in the US due to COVID-19 outbreaks among workers. However, the company said demand remained strong for beef, pushing prices high.
JBS was sued by labour prosecutors in Brazil for allegedly not implementing measures to protect its workers from the pandemic.
But even after several JBS plants in three states in Brazil were closed temporarily, its Seara division which sells pork, poultry and processed foods reported 26% higher net sales at BRL 6.4 billion (~US$1.19 billion)
JBS said its Australian operations were not as affected by COVID-19. While there was an increase in cattle volume slaughtered compared to the prior quarter, cattle availability was an issue.
The company reported a 33% higher consolidated net revenue at BRL 67.58 billion (~US$12.5 billion), with all its business units reported increased sales.
JBS emphasised in its earnings statement the higher beef exports total from Brazil to China, with net revenue 53% up in dollar terms over the quarter.
JBS sells meat to 190 countries.