JBS SA Falls Short of Analyst Expectations in Q4 2023 Profit Report

JBS SA, the leading Brazilian meat processor, released its fourth-quarter financial results for 2023, revealing profits that fell significantly below analysts’ forecasts. The company attributed the disappointing figures to a challenging global landscape characterized by excess meat supplies and soaring grain prices during the initial six months of the year. Analysts had anticipated fourth-quarter profits to reach 800.2 million reais, but JBS recorded a net profit of only 82.6 million reais.

Although the fourth-quarter earnings before interest, tax, depreciation, and amortization (EBITDA) aligned closely with analysts’ projections at 5.104 billion reais, the full-year adjusted EBITDA plummeted by 50% compared to the previous year, amounting to 17.1 billion reais. Despite these setbacks, JBS experienced a turnaround in the latter half of 2023. The company witnessed improved market dynamics for pork and poultry products in North America and Brazil, its home turf. Moreover, the decline in grain prices during the latter part of the year offered a glimmer of hope for JBS.

For the entire fiscal year of 2023, JBS reported an adjusted EBITDA margin of 4.7%. The company’s performance underscores the challenges faced in the meat processing industry amidst global market fluctuations and volatile input prices.