Global meat processing giants increase their profits

JBS, which is the world’s number one beef processor and also the biggest poultry meat processor and second largest for pork, has recorded an adjusted EBITDA (earnings before interest, taxation, depreciation and amortization) of $2.1bn (€2bn), a margin of 10.8% on global revenue of $19.9bn (€18.8bn).

EBITDA, the most consistent performance measure when assessing company results, was almost double the $1.1bn (€1bn) it was in the same period in 2023.

In its comment on the results, JBS highlighted that the improved performance was very much driven by the poultry and pork divisions of the business performing above expectations in the US and Brazil.

It also flagged that the US beef business was still feeling the effects of prolonged high cattle prices and it was the only part of the business that hadn’t showed improved results on last year.

It posted a very small EBITDA of $29m (€27.3m) or 0.5% on revenue of $6.3bn (€5.9bn) compared with EBITDA of $103m (€97m) on revenue of just under $6bn (€5.7bn) the previous year.

The former meat and meals business of Kerry, including the Galtee and Denny brands plus the Moy Park poultry business in Northern Ireland, are part of the JBS portfolio through Pilgrim’s Pride in which JBS has the majority shareholding.

Marfrig, the second largest beef processor in the world after JBS, posted an EBITDA for the third quarter of BRL 3.9bn (€636m) on revenue of BRL37.7bn (€6.1bn). The North American part of the business which reports in US dollars, reported an adjusted EBITDA of $79m (€75m) or 2.4% on revenue of $3.2bn (€3bn). This compares with adjusted EBITDA of $150m (€141m) on $3.4bn (€3.2bn) in the same period last year.