Brazil's JBS Q2 profit falls almost 10%, but tops estimates (updated)

Pilgrims Pride

11/08/2022 22:45

(Recasts throughout)
    SAO PAULO, Aug 11 (Reuters) - JBS SA  JBSS3.SA , the world's
largest meatpacker, posted an almost 10% drop in net profits, to
$766 million, driven by the relative weakness of its U.S. beef
and pork units in the second quarter, according to an earnings
statement on Thursday.
    Still, it beat analysts forecasts nE6N2XO018.
    JBS reported a 4.6% fall in revenue for its U.S. beef
division, which is normally the company's cash cow, while
earnings before interest, tax, depreciation and amortization, a
measure of operating profitability known as EBITDA, slumped 55%
compared with the same year-ago quarter. 
    U.S meat processors are now reeling from the effects of
lower cattle availability in North America, where a drought is
leading ranchers to terminate animals rather than sending them
for processing.
    In the second quarter, overall U.S. pork exports fell 17.7%
due to a drop in demand from China, Japan and Canada, JBS said
citing USDA data.
    As such, results for its U.S. pork division were affected,
with JBS sales for that unit dropping 3.2% on an annual basis,
to 10.3 billion reais.      
    JBS' Pilgrims Pride  PPC.O  poultry united, however,
provided a silver lining in the United States, as its chicken
sales rose by 18.3% to 22.7 billion reais.
    In Brazil, likewise, JBS' Seara processed foods division did
well.
    Seara sells about 47% of its output in Brazil, and that
business brought in 5 billion reais  ($969.24 million) last
quarter, 20% more than a year ago, JBS said. 
    To fend off cost inflation, Seara was able to raise prepared
products prices by 19% on average, while increasing sales
volumes by 5%. 
    At the same time, Seara's export sales reached $1.1 billion,
a 27.9% rise from the same quarter a year ago.
    In Brazil, JBS beef products sales rose by almost 11% to
14.1 billion reais, in spite of a 12% fall in cattle processing
because China temporarily halted imports from a large plant.


($1 = 5.1587 reais)

 (Reporting by Ana Mano; Editing by Leslie Adler  and Marguerita
Choy)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
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