Brazil's JBS Q4 net profit falls almost 64% (updated)

Pilgrims Pride

21/03/2023 22:02

(Adds details from earnings statement, adds to headline)
    By Ana Mano
       SAO PAULO, March 21 (Reuters) - JBS SA  JBSS3.SA , the
world's biggest meatpacker, reported a nearly 64% fall in net
profits for the fourth quarter, blaming its U.S. beef operations
and an oversupplied global market for chicken meat that affected
its Pilgrims Pride unit. 
    JBS's U.S. beef operations is its biggest unit by sales,
followed by Pilgrims Pride. Both recorded a fall in net revenue
over the fourth quarter, with the U.S. beef unit selling some
12% less, at almost 29 billion reais ($5.53 billion). 
    Pilgrims sales dropped almost 4% to just below 22 billion
reais, JBS said.
    Overall, quarterly net profit was 2.35 billion reais, while
adjusted earnings before interest, tax, depreciation and
amortization (EBITDA) was 4.6 billion reais, 65% below the
result in the fourth quarter of 2021.
    "We note that the challenging market conditions that
pressured our performance in the fourth quarter of 2022 remains
in the first quarter of 2023, traditionally a weaker period for
the protein industry globally," said CEO Gilberto Tomazoni in a
note addressing investors.
    China, always an important driver for growth, remained the
main destination of JBS' meat exports in 2022, accounting for
26.2% of the company's total sales internationally. In 2021,
that share was a higher 27.1%, the company said.
    On a brighter note, JBS said sales to the affluent Middle
Eastern market were 12.1% of total exports last year, up from
10.7% in 2021. 
        In its home market, JBS posted healthy results at its
Seara division, which processes pork and chicken, driven by its
ability to raise average domestic product prices. 
    Seara also benefited from a 15.4% jump in dollar-denominated
export sales, JBS said.
    But while Seara's overall revenue jumped 9% from the same
quarter in 2021, margins suffered because of cost inflation, in
particular higher livestock feed prices in Brazil.
    JBS said extreme volatility in the international market
affected its results in 2022, citing the global increase in the
supply of poultry, as well as avian flu and the conflict between
Russia and Ukraine.
    Still, the company had net sales of 375 billion reais in
2022, a 7% rise from 2021.
    ($1 = 5.2340 reais)
  

 (Reporting by Ana Mano; Editing by Lincoln Feast)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
+55-119-4470-4529; Reuters Messaging:
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