Higher meat prices hike up JBS’ domestic sales

By Ashley Williams contact

- Last updated on GMT

JBS paid tribute to its Brazilian units for its successful sales quarter
JBS paid tribute to its Brazilian units for its successful sales quarter
JBS’ Brazilian units have been highlighted in the company’s positive third quarter results, as consolidated net revenue grew by 20.1% in comparison to last year.

The business reported a net revenue of R$49.4bn (US$13bn) for the third quarter compared to R$41.1bn (US$10.8bn) during last year’s quarter. JBS said its Brazilian units – JBS Brazil and Seara – had contributed significantly to the sales jump, growing revenue by 37.2% and 8.8% respectively.

The company chalked up adjusted pre-tax profit of R$4.4bn (US$1.2bn), up 2.6% on the same period in 2017, hailing this as the highest profit it had ever recorded in a single quarter.

Seara revealed that higher sales prices in the domestic and export markets had ramped up its revenues, but admitted it was still feeling the effects of a truckers strike as total volumes fell by 6.7%.

Average sales prices in the domestic market increased by 11.9% for fresh poultry and 8.4% for prepared foods. In export markets, sales prices of fresh poultry increased by 25.1% and 21.6% in prepared foods.

As a result of lower poultry production, volumes had been prioritised according to profitability to markets such as Europe, Saudi Arabia, Japan and South Korea.

Brazilian pork prices also declined by 11.1% due to Russia’s temporary ban on pork from the country.

In contrast, JBS Brazil reported a 29.3% increase in the number of animals it processed, particularly for the domestic market. Revenue grew by 23.2% thanks to an increase of 18.1% in volume and 4.4% sales prices.

Devaluation of the Brazilian real was a major factor for JBS Brazil’s net revenue for the export market. Net revenue for the export market grew by 54.1% as a result of 30.5% higher volumes and 18.1% higher sales prices.

For the quarter, approximately 73% of JBS global sales came from markets where the company operates and 27% from exports.

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