Poultry and pork drive financial records for JBS and BRF
In the last quarter, JBS and BRF, 2 giants in Brazil’s poultry and pork production sector, recorded their best ever financial results.
The reported results are a consequence of high global demand for animal protein, favourable exchange rates for exports, growing domestic consumption, the easing of sanitary restrictions, and lower input costs, such as corn and soybeans.
Industry experts indicate that if current conditions persist, both JBS and BRF have the potential to continue on an upward trajectory. But, they caution about possible challenges, such as exchange rate volatility, uncertainty in grain supply, and potential trade barriers that may arise in strategic markets.
JBS, the largest meat company in the world
JBS reported significant growth in its revenues and profits and achieved a net income of US$20.3 billion in the second quarter of 2024, which is an increase of 12.6% compared to the same period in 2023.
During the same period, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) almost doubled, reaching US$2 billion, while net profit was US$340 million.
These results were primarily driven by poultry and pork operations, which contributed 75% of the company’s EBITDA, with particular emphasis on Pilgrim’s, Seara, and JBS USA Pork units.
The company attributes this success to increased exports, especially to Asian markets, where demand for Brazilian pork has been growing due to post-pandemic economic recovery and the impact of African Swine Fever on local production.
BRF improved profitabilty for 6th year runing
Similarly, BRF celebrated its best second quarter of financial results in its history. The company posted one of its strongest performances between April and June, with a net profit of US$220 million and free cashflow of $340 million.
The company improved its profitability for the 6th consecutive quarter, achieving a margin of 17.6%, and a 22.3% revenue increase compared to the same period in 2023. BRF recorded an EBITDA of US$520 million, also the best result ever.
The company highlighted the strengthening of the domestic market, with increased consumption of poultry and pork, coupled with efficient cost management, which resulted in higher operating margins. Exports to the Middle East and Asia significantly contributed to the record performance.
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