The Brazilian multinational meat packing business JBS has posted record third quarter earnings from its worldwide activities, benefiting from growing demand for protein foodstuffs.
The group posted an ebitda (earnings before interest, tax, depreciation and amortisation) of R$5.91bn on net revenues of R$52.2bn in the three months to end September 2019, compared to R$5.01bn and R$50.8bn in the same period of 2018. Gross debt is down by US$2.7bn.
Credit rating agency Standard and Poor has upgraded the group to BB stable, “highlighting the substantial improvement in leverage and low volatility,” states JBS.
The business has resumed its strategy of expanding through acquisition with agreement to purchase a number of businesses in the last quarter.
These included Tulip, the UK-based producer of pork and prepared foods from Danish Crown; the acquisition of a pork unit from Seberi in Brazil; and the purchase of Marba, a traditional cold cuts and sausage company in the Brazilian state of São Paulo, subject to closing conditions. The combined acquisitions will add R$5.3bn to annual revenues.
Global increase in protein consumption
JBS global chief executive Gilberto Tomazoni said the company’s diverse protein and geographic production and distribution platform has given it an important competitive advantage.
“We have created a global innovation team and prioritised global trends, including convenience, alternative proteins, healthiness and products that meet different moments of consumption and indulgence, while investing regionally in product development to meet local preferences,” he noted
Looking ahead, Mr Tomazoni said that growth in population, urbanisation and disposable income, among other factors, have contributed to an increase in protein consumption globally, principally in Asian markets.