Brazil-based JBS, the world's largest meat packer, reported a significant increase in net profit for the final quarter of 2024, despite challenges in its U.S. beef division due to high cattle prices.
The company posted a fourth-quarter profit of 2.412 billion reais ($423.57 million), a rise from approximately 83 million reais in the same quarter last year.
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) reached 10.789 billion reais, exceeding analysts' expectations of 9.888 billion reais.
In an interview, CEO Gilberto Tomazoni highlighted the resilience of the U.S. beef business, noting that while the market faces challenges with cattle scarcity and rising costs, the company was still able to maintain growth in margins.
The U.S. beef division reported EBITDA of 647.1 million reais last quarter, a substantial improvement from a negative EBITDA of 488.5 million in the same period of 2023, with margins rising to 1.7% from -1.6%.
Tomazoni acknowledged that the operating environment in the U.S. was more challenging compared to the previous year but emphasized the company's ability to enhance margins.
He also commended the turnaround of Seara, JBS’s processed foods division in Brazil, which has achieved high double-digit margins in the last two quarters, with EBITDA reaching 2.627 billion reais in the final three months of 2024, a remarkable 292% increase from the previous year.
JBS recorded consolidated net revenue of 116.7 billion reais in the fourth quarter, representing a 21% increase from the same period last year.
For the entirety of 2024, JBS' adjusted EBITDA was 39 billion reais, with an adjusted margin of 9.4%, up 4.7 percentage points from the previous year, reflecting improved profitability across all business units.
The company reported a net profit of 9.615 billion reais for the year, recovering from a net loss of about 1 billion reais in 2023.