SAO PAULO (Reuters) — Brazil’s JBS SA, the world’s largest meat packer, said its divisions that process chicken and pigs lifted financial results in the last quarter, including poultry unit Pilgrim’s Pride, JBS USA Pork and Seara in Brazil.
Performance there compensated for a slump in the Beef USA division, which accounts for about a third of JBS’s revenue, the company’s second-quarter results showed.
JBS reported a net profit of US$315.2 million for the quarter, it announced Aug. 13.
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The adjusted earnings before interest, tax, depreciation and amortization, a measure of operating income, were $1.8 billion for the quarter from April to June.
Gilberto Tomazoni, global chief executive officer of JBS, said in an interview that the results were boosted by favourable supply and demand dynamics, as well as lower prices of grains for animal feed and operational improvements.
Tomazoni added that the company’s processed food, poultry and pork unit in Brazil, Seara, had overcome past operational challenges, and while improvements had been incorporated, more adjustments would be made.
He said a dual share listing plan was still an important strategy for the company to unlock value in the U.S., one of its biggest markets. It is pending authorization from the U.S. Securities and Exchange Commission.
“When we have SEC approval for the registration, we’ll call the shareholder meeting and put it to a vote,” he said, adding that executives were still in talks with SEC officials.
While exports to China were down, Tomazoni said those to the United States, Chile and the Middle East were holding up.
“Brazil’s animal processing volumes grew significantly, and domestic consumption was greater than exports,” he said.
JBS increased free cash generation to $1 billion in the second quarter, which gave room to deleverage debt.
Guilherme Cavalcanti, chief financial officer, said reduced debt will allow the company to maintain its growth plans.
Total revenue, for the first time, exceeded $18.25 billion in a quarter.
