JBS closes 2nd quarter of 2024 with record Net Revenue of R$100 billion
JBS also recorded EBITDA of R$9.9 billion , compared to R$4.5 billion recorded in the same period last year, while Net Income was R$1.7 billion. The EBITDA Margin closed at 9.8% , almost double the margin recorded in 2Q23.
As evidence of the strength of the Company's global multi-protein platform, 75% of EBITDA comes from poultry and pork operations, with emphasis on Pilgrim's, Seara and JBS USA Pork. In addition, Australia and JBS Brazil also recorded excellent performance.
"JBS’s results in the second quarter of 2024 reinforce our global diversification strategy, which is driven by investments in innovation and the construction of strong brands, consolidating a more resilient and higher value-added portfolio", says Gilberto Tomazoni, Global CEO of JBS .
The good performance of poultry and pork is due to an increase in sales, with strong demand, less pressured costs and stable grain prices, based on the operations of the Pilgrim's Pride Corporation, Seara and JBS USA Pork business units. In the beef segment, the market remains balanced with the favorable phase of protein in Brazil and Australia, while the livestock cycle in the United States remains challenging.
In the second quarter of 2024, JBS brought forward its planned deleveraging by six months. Between 1Q24 and 2Q24, dollar leverage fell from 3.66x to 2.77x (net debt/EBITDA) . The Company ended the quarter with R$21.4 billion in cash and has US$3.3 billion available in revolving credit lines equivalent to R$18.6 billion at the closing exchange rate for the period. The company's net debt was US$14.8 billion (R$82 billion), a reduction of approximately US$1.9 billion when compared to the closing of 2Q23.
"The results for the second quarter of 2024 reaffirm our confidence in JBS’s long-term strategy, which focuses on expanding our global platform and consolidating our portfolio of strong brands and value-added products. This allows us to invest in new types of protein, repeating the good results we have had in the segments in which we operate", says Tomazoni .
Pilgrim 's Pride Corporation reported its best quarterly EBITDA in history, which was R$4.1 billion in 2Q24 - 119.7% higher year-over-year. The EBITDA margin grew 8.5 pp in one year, closing the quarter at 17.2%. Net Revenue grew 11.5% in 12 months and closed at R$23.8 billion in the period. Between April and June 2024, the Company continued to execute its strategy and continued to expand its relationship with key customers, further improving the level of service in a more attractive market.
For JBS USA Pork, the quarter presented Net Revenue of R$11.3 billion, with a growth of 28.2% compared to the same quarter of the previous year. EBITDA in 2Q24 was R$1.3 billion, an increase of 224.4% compared to the value in 2Q23. In the same comparison, the EBITDA margin grew 6.7 pp in one year and closed at 11.1%. The figures come from the growth in average wholesale prices (17% per year) and the boost from strong demand in a seasonally stronger period. Operations in the period included the expansion of the value-added portfolio and improvements in commercial, operational and logistics execution.
JBS Australia reported Net Revenue of R$8.6 billion in the second quarter of 2024, a 15.3% increase in 12 months. EBITDA for the period was R$1.2 billion, with a margin of 13.7%. The result reflects the growth of the beef business, in the domestic and international markets.
In the second quarter of 2024, JBS Beef North America had Net Revenue of R$31.3 billion. During the period, the Company worked to improve pricing, optimize the product mix, increase yield per carcass and improve manufacturing efficiency.
Strong brands in Brazil
Seara continues with its innovation and execution strategy, strengthening the brand with consumers, achieving good results through indicators such as penetration and repurchase in the domestic market. The result was a Net Revenue of R$ 11.6 billion in 2Q24, a growth of 12.5% in one year. EBITDA grew 381% in 12 months and closed the second quarter at R$ 2 billion. The adjusted margin in the period was 17.4%, 13.3 pp more than the same quarter of the previous year.
The performance is still a reflection of the operational actions implemented throughout the production chain, which resulted in better operational indicators, lower grain costs, better price management and expansion of the value-added portfolio. In the domestic market, all categories showed growth, with emphasis on fresh chicken, whose sales growth was approximately 30% in the space of one year.
JBS Brasil , in 2Q24, closed with Net Revenue of R$15.5 billion, an increase of 11.2% compared to 2Q23. EBITDA for the second quarter of 2024 increased 74.7%, compared to the second quarter of 2023, in the amount of R$1.2 billion. The adjusted margin for the second quarter of this year was 7.6%, an increase of 2.8 pp compared to the same period last year.
The quarterly result reflects higher sales volumes. In the domestic market, revenue in the fresh beef category grew 12% year-on-year during 2Q24. During the period, the Company maintained its focus on commercial execution, increasing and improving the level of service to partners, and expanding the portfolio of value-added products.
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