Pork drives financial records for JBS and BRF

21-08 | Market trends/analysis | News

JBS and BRF recorded the best financial results in their histories in the second quarter of 2024. This was partly driven by their pork activities.

The record financial results stem from high global demand for animal protein, favourable exchange rates for exports, and growing domestic consumption, driven by economic recovery and the easing of sanitary restrictions.

Additionally, the pork and poultry chains benefited from lower input costs, such as corn and soybeans, which are essential for animal nutrition.

Continuing upward trajectory

Industry experts indicate that if current conditions persist, both JBS and BRF have the potential to continue on an upward trajectory, with promising growth prospects for the next quarter. However, they caution for possible challenges, such as exchange rate volatility, uncertainty in grain supply, and potential trade barriers that may arise in strategic markets.

JBS

JBS reported significant growth in its revenues and profits, highlighting robust performance in pork and poultry operations. JBS is the largest meat company in the world, and achieved a net income of $20.3 billion 2024 second quarter, an increase of 12.6% compared to the same period last year.

During the same period, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) almost doubled, reaching $2 billion, while net profit was $340 million.

These results were primarily driven by poultry and pork operations, which contributed 75% of the company’s EBITDA, with particular emphasis on Pilgrim’s, Seara, and JBS USA Pork units.

The company attributes this success to increased exports, especially to Asian markets, where demand for Brazilian pork has been growing due to post-pandemic economic recovery and the impact of African Swine Fever on local production.

BRF

Similarly, BRF celebrated its best second quarter of financial results in its history. BRF posted one of its strongest performances between April and June, with a net profit of $220 million and free cash flow of $340 million.

The company improved its profitability for the sixth consecutive quarter, achieving a margin of 17.6%, and a 22.3% revenue increase compared to the same period in 2023. BRF recorded an EBITDA of $520 million, also the best result ever.

The company highlighted the strengthening of the domestic market, with increased consumption of poultry and pork, coupled with efficient cost management, which resulted in higher operating margins. Exports to the Middle East and Asia significantly contributed to the record performance.

Daniel Azevedo Freelance journalist Brazil