File Photo
JBS SA, the world's largest meatpacker, is bullish on the
prospect of beef sales in Asian countries, mainly China, as per capita beef
consumption in the region is low.
Speaking on a conference call to discuss second-quarter
results, Chief Executive Gilberto Tomazoni said JBS, with its many export
platforms, was in a good position to cater to that demand.
“The rise in beef imports is structural in Asia given the
improvement in (consumers’) purchasing power,” Tomazoni said.
JBS exports beef from plants in Brazil, Australia and the
United States. The company also processes pork, chicken and fish products in
multiple countries.
On Thursday(August 11, 2022), JBS reported a fall in net
profit, citing a relative weakness of its U.S. beef and pork businesses.
Its hares were down 1.57% to 30.72 reais in mid-morning
trading on Friday(August 12, 2022).
“The fall of margins in U.S. beef operations was almost
entirely compensated by the other business units,” Tomazoni said.
JBS reported net revenue almost 8% higher at 92.2 billion
reais for the last quarter, while overall operating margins remained in the
double digits.
U.S. beef operations were partly affected by a lack of
animal supply for processing, though beef exports from the United States are
expected to be a record this year, Tomazoni said.
Pork sales, on the other hand, are expected to reflect lower
demand from China, where hog herds are growing again after an outbreak of
African Swine Fever in 2018.
In Brazil, JBS’ Seara division was able to increase prepared
foods products prices, boosting profitability.
“Seara surprised even the most upbeat,” Credit Suisse said
in a note to clients. Seara’s 14.1% operating margin was a record, analysts
said.
JBS executives said Sierra's price increase helped offset
cost inflation, but also reflected a better product mix for sales.
Brazil's ongoing government cash transfer programs should
also boost food sales in JBS's home country, executives noted.
|Source: Online/SZK
Comment Now