Company reports a net income of R$ 3.84 billion, with growth across all business segments
JBS, one of the world’s largest animal protein companies, reported a net income of R$ 3.84 billion for the third quarter, a 571% increase compared to the R$ 572.7 million reported in the same period of 2023. The stronger-than-expected result led the company to raise its projections for revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the year.
In a report, JBS Global CEO Gilberto Tomazoni stated that the company’s strong performance in the quarter was driven by global demand for proteins, lower grain prices, and improvements in the management of product mix and markets. “In the third quarter of 2024, we saw growth across all our business units. Once again, our strategy of geographic diversification and multi-protein platforms was highlighted, driven by investments in innovation and the development of strong brands, consolidating a portfolio with higher added value,” said Tomazoni.
JBS’ adjusted EBITDA rose 120.7% to R$ 11.94 billion, while the adjusted EBITDA margin increased by 4.9 percentage points to 10.8%. Revenue totaled R$ 110.5 billion, representing a 20.9% growth compared to the third quarter of 2023. During the period, 74% of JBS’ global sales occurred in markets where the company operates, while 26% came from exports. Net financial expenses totaled R$ 1.1 billion, down 17% from the same quarter last year.
According to JBS, its poultry and pork businesses in Brazil and the United States exceeded expectations. The Seara and Pilgrim’s Pride Corporation units performed above expectations, with increased domestic and export sales, reduced costs, and a drop in grain prices. In Brazil and the U.S., the pork business grew, mainly driven by value-added products from JBS Pork and Seara.
Seara saw a 19.2% increase in revenue to R$ 12.17 billion, and a 351.6% rise in adjusted EBITDA to R$ 2.56 billion. Pilgrim’s Pride reported a 19.5% increase in revenue to R$ 25.40 billion and a 96% rise in adjusted EBITDA to R$ 4.30 billion. JBS noted that the performance was favored by portfolio diversification and, in the case of Seara, by the return on investment in new chicken breading units. JBS USA Pork grew 14.5% in revenue to R$ 11.33 billion, with adjusted EBITDA increasing by 34% to R$ 1.37 billion.
In the beef segment, the market remains balanced in Brazil, where protein prices are favorable, while the cattle cycle in the United States continues to face challenges.
JBS Brazil closed the quarter with net revenue of R$ 18.1 billion, a 25% increase. Adjusted EBITDA surged 332%, reaching R$ 2.1 billion. In international markets, net revenue from beef grew by 34%, driven by a 20% increase in volume. In addition to strong international demand, geographic diversification also helped sustain the results, the company said. During the quarter, sales to the Middle East, the U.S., and the Philippines increased. Domestic market sales also showed growth.
JBS Australia reported a 28.7% rise in net revenue to USD 9.9 billion and a 45.5% increase in adjusted EBITDA to R$ 966.8 million. JBS Beef North America saw a 20.5% rise in revenue to R$ 35 billion, with adjusted EBITDA up by 29.4% to R$ 650.7 million.
Cash flow from operating activities was R$ 10.3 billion, compared to R$ 6.3 billion in the previous year, reflecting improved operational performance across almost all business units. Free cash flow grew by 88%, reaching R$ 5.5 billion.
JBS’ net debt stood at R$ 74.75 billion, a 7% decrease from the same period in 2023. In U.S. dollars, the decrease was 14.5%, to USD 13.72 billion, driven by strong cash generation during the quarter. The leverage ratio (net debt to EBITDA) stood at 2.15x in dollars, down from 2.77x a year earlier. As a result, JBS brought forward its projected deleveraging for the end of the year.
The company emphasized its focus on growth through diversification, innovation, value-added products, and strong brands, particularly noting the recent announcement of an investment to expand salmon production at Huon Aquaculture in Australia. In Jeddah, Saudi Arabia, the company is completing the construction of a new Seara facility that will quadruple its capacity to produce value-added products in the country. JBS also mentioned its focus on improving operational and commercial execution to protect profitability.
Outlook
As a result of the third-quarter performance, JBS has raised its full-year projections. The company now expects revenue of USD 412 billion (R$ 77 billion), compared to its previous estimate of R$ 409 billion (USD 76 billion), a 0.7% increase. The adjusted EBITDA estimate has been revised to a range of R$ 37 billion (USD 6.9 billion) to R$ 38 billion (USD 7.1 billion), up from the previous forecast of R$ 33 billion (USD 6.2 billion) to R$ 36 billion (USD 6.7 billion), representing a 2.8% to 5.6% increase.
Dividends
JBS’ Board of Directors approved the distribution of R$ 2.221 billion in interim dividends from retained earnings as of December 31, 2023. The payment will be made on January 15, 2025.
According to JBS, the dividend amount per share is estimated and may vary due to changes in the number of shares in treasury.
