.Strong cattle prices in the US in 2022 meant lower factory profits following records in 2021
ADVERTISEMENT
JBS has posted reduced profits in 2022 compared with the record results of the previous year despite revenue increasing by 6.9% to BRL375bn (€67bn). Earnings before interest, taxation, depreciation and amortisation (EBITDA) were down 24.3% to BRL34.6bn (€6.2bn), with net income down 24.5% to BRL15.5bn (€2.8bn).
The North American beef division is the biggest part of the JBS group, which is headquartered in Brazil and is the world’s largest beef and poultry processor through its subsidiary Pilgrim’s Pride.
Pilgrim’s Pride owns Moy Park poultry and acquired the Kerry Meat and Meals Division in 2021.
ADVERTISEMENT
It was a return to more normal profit margins on beef in the US that had the biggest effect on JBS in 2022. While revenue was only down a marginal 1.4% to BRL114bn (€20.4bn), this was a 56% drop in EBITDA to BRL10.7bn (€1.9m) and an 11.6% drop in EBITDA margin to a still very healthy 9.4% following what had been a truly exceptional year in 2021. It was a particularly difficult fourth quarter for JBS in North America, with revenue down 12.3% compared with the same period in 2021 to BRL2837bn (€5.1bn) and EBITDA down 85.5% to BRL1bn (€178.6m), though this is a still respectable 3.6% EBITDA margin.
The company referenced the “current challenging market conditions” with “high inflation weakening consumption causing an imbalance between supply and demand”. Production costs are also a problem for JBS as US cattle prices have been consistently above €5/kg for carcases, with a 60% kill-out for much of 2022.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
JBS has posted reduced profits in 2022 compared with the record results of the previous year despite revenue increasing by 6.9% to BRL375bn (€67bn). Earnings before interest, taxation, depreciation and amortisation (EBITDA) were down 24.3% to BRL34.6bn (€6.2bn), with net income down 24.5% to BRL15.5bn (€2.8bn).
The North American beef division is the biggest part of the JBS group, which is headquartered in Brazil and is the world’s largest beef and poultry processor through its subsidiary Pilgrim’s Pride.
Pilgrim’s Pride owns Moy Park poultry and acquired the Kerry Meat and Meals Division in 2021.
It was a return to more normal profit margins on beef in the US that had the biggest effect on JBS in 2022. While revenue was only down a marginal 1.4% to BRL114bn (€20.4bn), this was a 56% drop in EBITDA to BRL10.7bn (€1.9m) and an 11.6% drop in EBITDA margin to a still very healthy 9.4% following what had been a truly exceptional year in 2021. It was a particularly difficult fourth quarter for JBS in North America, with revenue down 12.3% compared with the same period in 2021 to BRL2837bn (€5.1bn) and EBITDA down 85.5% to BRL1bn (€178.6m), though this is a still respectable 3.6% EBITDA margin.
The company referenced the “current challenging market conditions” with “high inflation weakening consumption causing an imbalance between supply and demand”. Production costs are also a problem for JBS as US cattle prices have been consistently above €5/kg for carcases, with a 60% kill-out for much of 2022.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS