JBS posts record net income in 2019

Brazil
Published:  01 April, 2020
Credit: JBS USA

The Brazil headquartered meat packing giant said it has recorded the best year in its history, thanks to a combination of positive business performance in the U.S., the surge in Chinese demand and a substantial reduction in financial expenses.

JBS has posted a record net revenue of R$204.5 billion (US$51.7 billion) for full 2019, and R$57.1 billion (US$13.9 billion) for the fourth quarter of 2019. Adjusted EBITDA for the year was a record R$19.9 billion (US$5 billion), with EBITDA margin of 9.7%. In the fourth quarter, adjusted EBITDA was R$5.7 billion (US$1.4 billion), with 9.9% margin. Net income for the year stood at R$6.1 billion (US$1.16 billion). Gilberto Tomazoni, CEO, JBS Global, said the results reflect “the strength of our production platform diversified by product type; beef, pork, chicken, sheep and processed products, and by geography. We have production operations in several countries on four continents; U.S., Brazil, Canada, Mexico, Australia, UK, France and Italy.”

JBS Brazil, which includes the JBS Couros tanning Group, posted a net revenue of R$32 billion (US$6.14 billion) in 2019, a 15.9% increase compared with 2018. In the fourth quarter, net revenue was R$9.6 billion (US$1.84 billion), 28.4% higher year-on-year.

COVID-19 update

JBS USA is temporarily reducing beef production at its Souderton, Pennsylvania, facility as a precautionary measure amid coronavirus concerns. The site is said to employ over 1,000 workers and is the largest beef facility east of Chicago. Allegedly, the facility will continue to run “fabrication and ground beef operations” and JBS expects full operations to resume April 14. More than 75% of the plant’s production is finished cattle; the remaining being cull cows and bulls. Normally, the plant processes about 2,500 head of cattle daily.