JBS Battles Margin Pressure Amid Record Revenue

Brazil's JBS, the world's largest meatpacker, reported a near-flat fourth-quarter net profit, with revenue offset by tighter margins due to higher U.S. cattle costs and a labor strike. Despite challenges, analysts noted strong demand and disciplined cost management. JBS announced $1 per share dividends, and record revenues of $23.06 billion.

Brazil's JBS, the world's largest meat producer, announced its fourth-quarter results on Wednesday, revealing a nearly unchanged net profit as record revenue was balanced by tighter margins, especially in its U.S. beef operations. The company recorded a net profit of $415 million for Q4, slightly below the $428 million forecast by analysts.

Higher livestock costs due to limited cattle supplies in the U.S. impacted the North American beef division, JBS's largest revenue sector. CEO Gilberto Tomazoni indicated challenging supply conditions would persist throughout the year. Meanwhile, a labor strike at a Colorado plant presents additional hurdles for the company.

Despite these challenges, JBS's North American beef sector outperformed expectations, maintaining robust U.S. demand and effective cost management amidst rising prices. The company declared dividends of $1 per share and announced a total adjusted EBITDA of $1.72 billion, surpassing predictions. Revenue rose 15% to $23.06 billion, supported by strong North American and Brazilian sales.

(With inputs from agencies.)