Net revenue was down by 4.6% year-on-year while adjusted EBITDA for the quarter fell by 78.6% to R$2.2 billion (US$447.34 million) and an adjusted EBITDA margin of 2.5% (down 8.6 percentage points. The company ended the quarter with a net loss of R$1.5 billion (US$304.93 million), down by 128%.

JBS Beef North America reported net revenue of R$27.4 billion (US$5.57 billion) for the quarter, falling by 5.6% year-on-year, while adjusted EBITDA was down by 97.2% to R$116 million (US$23.58 million) with a margin of 0.4%.

Meanwhile, JBS Australia achieved revenue of R$7.2 billion (US$1.46 billion), a drop of 2.3%, with adjusted EBITDA loss of R$18 million (US$3.66 million), down by 104% year-on-year, with a margin of 0.2%.

PPC had net revenue of R$21.6 billion (US$4.39 billion), falling by 2.5%, with adjusted EBITDA of R$1.4 billion (US$284.57 million) (down 56.5%) and a margin of 6.5%, down eight percentage points). Meanwhile, JBS Brasil had net revenue of R$12.2 billion (US$2.48 billion), down 14.9%, and adjusted EBITDA of R$297 million (US$60.37 million), down 32.3%. This unit’s adjusted EBITDA margin was 2.4%, down 0.6 percentage points.

The only business unit with a positive result, SEARA achieved net revenue of R$10.3 billion (US$2.09 billion), up by 8.9% year-on-year. However, adjusted EBITDA was down by 76.1% to R$147 million (US$29.88 million) and the margin fell to 1.4%.

Speaking on the results, Global CEO Gilberto Tomazioni said: “Beyond market conditions, two businesses were particularly impacted this quarter Beef USA and Seara. In the United States, we faced high cattle prices and a compression of margins. Additionally, commercial and industrial performance fell below our expectations, which are issues that have already been addressed.

“In Seara, we faced challenges of falling prices in exports, high grain costs, and low productivity in agriculture, which impacted costs and volume. We have taken measures to reverse productivity in the field, and the cost of grain is already showing more favourable results.”

Looking forward, he added: “The upcoming quarters in the U.S. market are historically stronger with the grilling season approaching, when the consumption of protein and value-added products is heightened. Global logistics conditions are also improving, with a reduction in container costs boding well for Asian exports. A significant decrease in cornmeal prices is ongoing in important producer markets, which has positive impacts on our poultry and pork facilities globally.

“In Australia, the cattle cycle is starting to show favourable signs, with continued improvement in supply expected throughout 2023. In Brazil, the resumption of China exports, new export authorizations in the U.S., Canada, the Philippines and Mexico, as well as strengthened domestic supplier relationship programs, provide the Brazilian business beef with a very strong outlook in the months ahead.”