**JBS SA Reports Strong Quarterly Profits Driven by Chicken Sales**
JBS SA has announced that its quarterly profits exceeded expectations, primarily due to a significant increase in chicken sales, even as the company grapples with substantial losses in its U.S. beef sector. For the three months ending in March, the Brazilian meat giant reported an adjusted net income of 2.92 billion reais ($520.7 million), marking a 78% increase from the same period last year. This figure surpasses the average analyst estimate of 2.79 billion reais.
The results highlight the critical role that chicken has played for major meat suppliers, including Tyson Foods and Cargill, amid a severe cattle shortage in the U.S. that has driven up costs and diminished profits from beef processing. In the first quarter, approximately 71% of JBS’s earnings before interest and taxes came from its chicken operations in North America and Brazil, benefiting from lower feed costs and robust consumer demand, compared to 57% a year earlier.
JBS’s CEO, Gilberto Tomazoni, expressed optimism about the chicken market, stating, “We’ve seen a very strong demand, I see a very positive year for chicken and pork,” while also noting ongoing supply constraints. However, the company’s North American beef business, its largest segment, reported a loss of $112.9 million in the first quarter, as rising meat prices were outstripped by record cattle costs. Conversely, profits from JBS’s beef operations in Brazil and Australia showed improvement compared to the previous year.
Based in Sao Paulo, JBS is nearing the completion of a long-term plan to list its shares in New York, having received approval from U.S. regulators last month. The company plans to hold a vote with minority shareholders on May 23, aiming to enhance its capital access and increase flexibility in funding through equity. Over the past year, JBS shares have surged by 85%, reaching record highs in April. However, the company reported a negative free cash flow of 5.4 billion reais in the first quarter, up from a negative 3.1 billion reais a year earlier, largely due to increased tax payments.
**FAQ**
**What factors contributed to JBS SA’s increased profits in the latest quarter?**
JBS SA’s increased profits were primarily driven by a surge in chicken sales, which accounted for a significant portion of its earnings, offsetting losses in its U.S. beef business due to rising cattle costs.