JBS Reports Strong Q2 Earnings with Higher Profit and Sales

JBS, a Brazilian meatpacking conglomerate, reported Q2 profit of $528.1 million, up from $328.8 million YoY, and revenue of $21 billion, a 9% increase. The company's diversified global business drove growth, despite challenges in the macroeconomic environment. JBS plans to invest in expanding its platform to meet future demand for protein. The company also agreed to buy a production facility in Iowa, which it plans to expand into a ready-to-eat bacon and sausage plant.

JBS, the world's largest meatpacking conglomerate, has reported a robust Q2 profit of $528.1 million, up from $328.8 million year-over-year (YoY). The company's revenue reached $21 billion, marking a 9% increase compared to the same period last year [2].

The company's diversified global business, including its operations in Brazil, the United States, and Australia, drove this growth. Despite challenges posed by macroeconomic factors and geopolitical tensions, JBS's resilience was evident in its ability to maintain profitability.

The performance was particularly notable in subsidiary Pilgrims Pride, which posted earnings before interest, tax, depreciation, and amortization (EBITDA) of $817.7 million. The Seara processed food business also demonstrated resilience amid an outbreak of bird flu in Brazil.

However, JBS's U.S. beef business struggled, posting a negative EBITDA of $233 million in the last quarter. The company's Brazilian and Australian beef operations remained strong, contributing significantly to overall performance.

CEO Gilberto Tomazoni acknowledged the challenges, including a 50% U.S. tariff on Brazilian products, which led to temporary production halts at certain JBS factories in Brazil. These factories later resumed operations to redirect products to other markets.

Looking ahead, JBS plans to invest in expanding its platform to meet future demand for protein. The company has also agreed to buy a production facility in Iowa, which it plans to expand into a ready-to-eat bacon and sausage plant.

References:
[1] https://www.marketscreener.com/quote/stock/WH-GROUP-LIMITED-17083222/
[2] https://ca.finance.yahoo.com/news/jbs-turns-q2-profit-despite-224842956.html