Brazil JBS's Q1 profit rises to nearly $1 billion
Brazilian meatpacker JBS SA posted a first-quarter profit that beat expectations on the back of strength in its United States business, according to a financial statement on Wednesday.
Ana Mano and Nayara Figueiredo, Reuters
via Nasdaq - May 11, 2022
SAO PAULO, May 11 (Reuters) - Brazilian meatpacker JBS SA JBSS3.SA posted a first-quarter profit that beat expectations on the back of strength in its United States business, according to a financial statement on Wednesday.
Despite posting a 151.4% increase in profit, high global grain prices and Brazil's sluggish economy challenged the world's biggest meat company, in addition to an expected drop in pork exports to China.
JBS made 5.14 billion reais ($1.00 billion) in profit after reporting net sales 20.8% higher at 90.8 billion reais.
Beef operations in North America remained strong, with net revenue rising almost 22% thanks to heated domestic demand, the recovery of food service channels and healthy retail sales, which also bolstered JBS's chicken business in the region.
The United States is also a major export platform for JBS.
During the quarter, and despite the slowness of some U.S. port operations, the company said beef export volumes rose by more than 6% from the country.
JBS also said Asia continues to be the most important region for exports of U.S. beef, notably China, which in the period increased beef import volumes by almost 62%.
On the other hand, the company said U.S. pork exports to China slumped, with the United States now ranking fifth as the main supplier of that type of meat to the Asian country.
U.S.-based pork processors reeled because China recovered from African Swine Fever, and may now supply more of its own needs, JBS said.
JBS's beef unit in Brazil was able to raise sales by 24.2% last quarter...