JBS SA (JBSAY) Q2 2024 Earnings Call Highlights: Strong Revenue Growth and Improved Margins

GuruFocus News
4 min read

In This Article:

  • Net Revenue: USD 19.3 billion for the second quarter of 2024.

  • Consolidated EBITDA Margin: 9.8%, an increase of 5 percentage points compared to Q2 2023.

  • Adjusted EBITDA: USD 1.9 billion.

  • Free Cash Flow: USD 1.1 billion.

  • Net Income: USD 329 million.

  • Adjusted Net Profit: USD 470 million, after adding back non-recurring effects.

  • US Pork Margin: Increased from 4.4% to 11.1% year over year.

  • Pilgrim's Pride EBITDA: USD 782.8 million, with a margin of 17.2%.

  • Seara EBITDA Margin: 17.4%.

  • CapEx Expenditure: Approximately USD 346 million, 63% for maintenance.

  • Net Debt: USD 14.8 billion, a reduction of USD 1.1 billion from the previous quarter.

  • Leverage Ratio: Decreased from 3.66 times to 2.77 times in the second quarter.

  • Interim Dividends: USD 0.37 per share announced.

  • Seara Net Revenue Growth: 6.7% year over year.

  • JBS Brazil Net Revenue Growth: 5% higher than Q2 2023.

  • JBS USA Pork Net Revenue: 22% higher than Q2 2023.

  • Pilgrim's Pride Net Revenue Growth: 6% increase compared to Q2 2023.

Release Date: August 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • JBS SA (JBSAY) reported a strong second quarter with net revenue of USD19.3 billion and a consolidated EBITDA margin of 9.8%, up 5 percentage points from the previous year.

  • The company generated a positive free cash flow of USD1.1 billion and announced a dividend distribution of USD0.37 per share.

  • JBS SA's global multi-protein platform, particularly its poultry and pork operations, contributed 75% of the EBITDA, showcasing the effectiveness of its diversification strategy.

  • The US pork division saw a significant margin increase from 4.4% to 11.1% year over year, driven by operational improvements and favorable market conditions.

  • The company's leverage ratio decreased from 3.66 times to 2.77 times in one quarter, indicating strong financial management and a path towards further deleveraging.

Negative Points

  • JBS Beef North America faced challenges due to a difficult cattle cycle, impacting profitability despite increased revenue.

  • The company is still navigating export restrictions due to the Newcastle disease outbreak, which could impact future quarters.

  • Despite strong results, the market environment in the United States remains challenging, particularly for the beef business.

  • The company is experiencing volatility in treasury markets, which could affect future financial strategies.

  • The NYSE listing process is ongoing and subject to delays, which could impact investor sentiment and market positioning.

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