Signage outside the JBS beef facility in Greeley, Colo. (Michael Ciaglo/Bloomberg News)
JBS SA, the world’s largest meatpacker, posted earnings that beat expectations as strong demand for chicken and pork helped offset pressure in its U.S. beef business.
The Brazilian company posted earnings before items such as interest and taxes of 10.8 billion reais ($1.9 billion) in the fourth quarter, according to a March 25 statement. That’s more than double a year earlier and 9.4% higher than the average of estimates compiled by Bloomberg.
JBS has continued to benefit from strong demand for chicken, with its subsidiary Pilgrim’s Pride recording its best year ever. Pork demand also helped boost the company’s results as consumers sought cheaper alternatives to beef after prices surged, especially in the U.S.
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“This result is even more significant considering the context in which it was reached, with about a third of the business in a down cycle,” CEO Gilberto Tomazoni said, commenting on the downturn in the U.S. cattle herd and its Seara brand in Brazil, which is undergoing improvements in its operations.
JBS, which last week removed an important hurdle to list its shares in New York, is proposing to pay shareholders another 4.4 billion reais in dividends, pending board approval. That would be on top of the same amount paid out in October and another 2.2 billion in January.
The company also benefited from strong beef demand in Brazil and Australia, which helped offset lower margins in the U.S., where the herd fell to the lowest in more than 70 years.
JBS ranks No. 68 on the Transport Topics Top 100 list of the largest private carriers in North America.
