JBS posts nearly 64% decline in Q4

U.S. beef operations, global oversupply of chicken were largest contributing factors.

Krissa Welshans, Livestock Editor

March 23, 2023

2 Min Read
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Reporting a net income 24.5% lower than in 2021, JBS Chief Executive Officer Gilberto Tomazoni said the company’s 2022 financial results demonstrate the importance of responsible financial management as well as the company’s ability to anticipate the natural cycles of in the global animal protein industry. Net income for Q4 2022 was sharply lower at 2.3 billion reals ($437 million), a 63.7% decline from the same period in 2021. Performance of U.S. beef operations as well as a global oversupply of chicken were the largest contributing factors to the decline, the company said.

“We observe that the challenging market conditions that impacted our performance in the fourth quarter of 2022 continue into the first quarter of 2023, which is traditionally a weaker period for the global protein industry,” he said. “In addition to margin compression in U.S. beef, high inflation in important markets is weakening consumption, causing an imbalance between supply and demand.”

Further, he said the company is also facing persistent pressure on production costs.

In the U.S., the company reported JBS Beef North America declined by 12.3% year over year in Q4 2022. JBS USA Pork sales declined 0.3% and Pilgrim’s Pride sales decline by 3.8% year over year in the quarter.

Despite the current challenging global economic scenario and the normalization of margins in the U.S. beef market, Tomazoni said the company is entering 2023 “with a comfortable cash position, stabilized debt, and no significant short-term debt maturities, which allows us to navigate with resilience and positions us well to prepare for future market opportunities.”

Tomazoni said the company is confident in its medium and long-term results based on its geographical and protein diversification strategy, “which has historically delivered superior outcomes.”

“Our globally diversified and multi-protein platform, which is unparalleled in the global protein industry, was built to mitigate the impacts of natural cycles on our business and maintain a healthy cash generation, allowing the company to reinvest in its growth, continue innovating, and deliver returns to shareholders,” he said.

About the Author(s)

Krissa Welshans

Livestock Editor

Krissa Welshans grew up on a crop farm and cow-calf operation in Marlette, Michigan. Welshans earned a bachelor’s degree in animal science from Michigan State University and master’s degree in public policy from New England College. She and her husband Brock run a show cattle operation in Henrietta, Texas, where they reside with their son, Wynn.

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