JBS revenue jumps 32% amid labour shortages

Published:  12 November, 2021

Brazilian meatpacking and leather processing giant JBS SA exceeded expectations with net revenue growth of 32% in the third quarter of the financial year to R$92.62 billion (US$17.1 billion).

During the company’s earnings call, Andre Nogueira, head of JBS SA’s U.S. division, said: “Labour shortages are holding back production growth. This is a key issue for the industry.”

Despite this, the company saw a profit of R$7.58 billion (US$1.83 billion) and EBITDA of R$13.92 billion (US$2.6 billion).

Meanwhile, in the United States, the availability of cattle remained stable, but cattle prices rose by up to 22% compared to the same quarter last year. Margins of JBS' beef business were the highest among all divisions at 21.8%.

Alongside its positive financial results, JBS signed a joint declaration at the COP26 summit in Scotland, articulated by the U.K. and U.S. to develop an industry roadmap to contain global warming by 1.5°C. At the same event, JBS signed a partnership with Royal DSM to implement a project with the goal of reducing the emission of cattle enteric methane on a global scale.