JBS had a net revenue of BRL 87 billion in the first quarter
"We start 2023 facing many challenges, but our diversified global platform continues to be a strength. Operational management measures and a significant improvement in the scenario already point to a more positive performance and in line with our potential", highlights Gilberto Tomazoni, Global CEO of JBS.
JBS Brasil, which brings together the company's beef business in the country, posted Net Revenue of R$12.2 billion and a margin of 2.4% in the first quarter, despite the temporary suspension of exports to China, which affected the entire the sector and which has already been revoked. The Company follows its strategy of: (i) increasing the number of key customers through the Friboi+ loyalty program; (ii) grow the higher value-added portfolio; (iii) increase the number of customers in the food service channel; (iv) bringing the Friboi and Swift brands closer to retailers and end consumers; and (v) continue to improve commercial execution.
Seara had Net Revenue of R$10.3 billion (+8.9% y/y), but it was affected by a combination of external factors, especially in the poultry export business. This harmed the business margins in the period. It is important to note that the company continues to perform well in the domestic market, which accounted for half of the unit's revenue in the period, totaling R$ 5.2 billion, 13.5% more than in 1Q22. The prepared foods category grew 13% year-on-year and should continue to grow with all the industrial expansions and modernizations that are being inaugurated by the Company.
"At Seara, we faced the challenges of falling export prices, high grain costs and low agricultural productivity, which impacted costs and volume. We took measures to reverse productivity in the field and the cost of grains is already more favorable", says the global CEO of JBS.
In the United States, Pilgrim's Pride improved margins in relation to the immediately previous quarter, reaching 6.5%. A similar scenario can be seen in the JBS USA Pork business, where the Company continues to invest in innovation, expansion of the product portfolio with better margins and productivity actions, which should be reinforced with the consolidation of the new pork-based prepared food units and bacon, located in Missouri, and Italian specialties, built in Columbia. JBS USA Beef is going through a very challenging period. The company continues to focus on improving operational efficiency, increasing the share of higher value-added products, as well as on the global distribution of products, mainly through the main commercial partners.
"In the US beef operation, we face high cattle prices and a flattening margin. In addition, commercial and industrial performance was below our expectations, issues already addressed", reports Tomazoni.
The correct financial management has once again proved to be a differential that guarantees the solidity of JBS. Even with leverage closing the quarter at 3.14x in reais and 3.16x in dollars, the company remains at a controlled level of debt, as a result of the liability management initiatives carried out in previous quarters.
"In the last 12 years, this is the first quarter that we have faced adversity in almost all the countries where we operate. This makes us believe more than ever that our employees and our geographic and protein diversification, especially in challenging scenarios, are our great strength", adds Gilberto Tomazoni.
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