For the January–March period, the company posted a net profit of $221 million, below analysts’ expectations of $236 million. At the same time, adjusted EBITDA fell by 26% year-on-year to $1.13 billion.
The main factor behind the decline was challenges in the North American segment, which includes beef production and the operations of poultry subsidiary Pilgrim’s Pride. High livestock prices in the United States, combined with limited supply, significantly pressured margins, while adverse weather conditions and temporary plant shutdowns negatively impacted poultry output.
In particular, the North American beef division, which accounts for about one-third of the company’s revenue, reported a negative EBITDA of $267 million, despite a 12% increase in revenue to $7.17 billion. A three-week strike at a processing plant in Colorado also added further pressure.
JBS’s total quarterly revenue increased by 11% to $21.61 billion, exceeding market expectations.
Meanwhile, the company’s operations in Brazil showed strong performance. EBITDA in the beef segment rose by 28% to $168 million, supported by higher export prices and increased volumes amid strong global demand. Revenue in this division reached a record first-quarter level of $3.79 billion.
Overall, JBS’s results reflect continued pressure on its North American business, while its Brazilian operations are helping to partially offset these challenges thanks to favorable global market conditions.
PigUA.info, based on reuters.com