By Ana Mano and Roberto Samora
SAO PAULO (Reuters) -Brazil-based JBS, the world’s largest meat packer, posted a sharp rise in net profit in the final quarter of 2024, even as the company’s U.S. beef division grapples with high cattle prices.
The company said fourth quarter profit came in at 2.412 billion reais ($423.57 million), up from about 83 million reais the year earlier.
The company said adjusted earnings before interest, tax, depreciation and amortization, a measure of operating income known as EBITDA, came in at 10.789 billion reais, higher than the 9.888 billion reais predicted by analysts.
In an interview, CEO Gilberto Tomazoni said its U.S. beef business remained strong despite U.S. challenges of cattle becoming scarce and expensive, pressuring margins in the market where the company derives most of its sales.
That division’s EBITDA was 647.1 million reais last quarter, up from a negative EBITDA of 488.5 million in the same period of 2023. Margins stood at 1.7% for the division, up from -1.6% in the fourth quarter of 2023.
Tomazoni said the operating environment in the U.S. was more challenging last year than the previous year, but the company was still able to raise margins.
He also praised what he called the “turnaround” of Seara, the company’s processed foods division in Brazil, which has recorded high, double-digit margins in the last two quarters and registered EBITDA of 2.627 billion reais in the final three months of 2024, a 292% increase from the previous year.
JBS recorded consolidated net revenue of 116.7 billion reais in the fourth quarter, up 21% from the same year ago quarter.
For 2024, JBS’ adjusted EBITDA reached 39 billion reais, with an adjusted margin of 9.4%, up 4.7 percentage points from the previous year and driven by improved profitability across all business units.
Net profit last year was 9.615 billion reais, reversing a net loss of about 1 billion reais in 2023, the company said.
(Reporting by Ana Mano and Roberto Samora; Editing by Chris Reese and Deepa Babington)
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