SAO PAULO, May 12 (Reuters) – Brazil’s JBS, the world’s largest meatpacker, posted a 56% decline in its first-quarter net profit on Tuesday, missing market estimates as the firm grappled with challenges across its beef and poultry operations in North America.
The company, whose products include beef, poultry and pork, reported a net profit of $221 million in the January-March period, compared to a forecast of $236 million from analysts polled by LSEG.
JBS attributed the results to operational challenges in North America, which includes JBS Beef North America and poultry subsidiary Pilgrim’s Pride, offsetting a positive performance in the Brazilian market.
High livestock prices amid a low cattle availability in the United States kept margins pressured during the quarter, while weather-related challenges and temporary plant stoppages affected poultry output, JBS said in an earnings report.
“In the U.S. cycle, business remains tough, and the first quarter is always a challenging period,” Chief Executive Gilberto Tomazoni told Reuters in an interview. “This quarter was worse than last year due to cyclical conditions.”
North American beef operations represent a third of JBS’s net sales, which stood at $21.61 billion, an 11% increase from a year earlier. Analysts had forecast the figure at $21.29 billion.
The firm’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) fell 26% year-on-year to $1.13 billion in the quarter, below analysts’ estimate of $1.27 billion.
(Reporting by Roberto Samora and Fernando Cardoso, Editing by Iñigo Alexander)
