SÃO PAULO – JBS released its fiscal second quarter results for 2024, reporting improvements in some of its business segments, including Pilgrim’s Pride, JBS USA Pork, and Seara but officials said challenges related to the cattle cycle continued to hinder its beef business.

“The strength of our diversification puts JBS in a unique position in the industry,” said Gilberto Tomazoni, chief executive officer of JBS. “While the market environment in the United States remains challenging, our beef businesses in Brazil and Australia are benefiting from favorable cycles in both countries.”

In the fiscal second quarter, ended June 30, 2024, net revenue for the quarter increased by 6.8% to $19.3 billion compared to the second quarter of 2023.

The company’s gross profit for the quarter was reported at $2.97 billion, up from $1.99 billion during the second quarter of fiscal 2023.  The net profit was reported as $329 million on the JBS earnings release.

JBS’ North American Beef segment reported net revenue of $5.99 billion during the quarter, up 3.1% from last year.

“Despite the more pressured margins due to the cattle cycle, JBS remains focused on its operational and commercial execution in order to protect its profitability,” JBS said. “Among the ongoing initiatives are the improvement of pricing, the optimization of the product mix, the increase in yield per carcass, greater capture of plant efficiency, among others. All of these implemented actions are fundamental to facing this most challenging cycle.”

Tomazoni added that JBS’ poultry and pork business has benefited from lower grain prices and a better balance between supply and demand, making for strong results in the United States, Mexico, and Europe.

Net revenues for the company’s US pork business increased by over 21% during the quarter to $2.16 billion compared to $1.77 billion during the same period last year.

“In addition to the improvement in commercial dynamics, profitability in the quarter was positively impacted by lower grain costs, continuous efforts aimed at expanding the value-added portfolio, in addition to the consistency of commercial, operational and logistical execution,” JBS said of the US pork business.

Pilgrim’s Pride Corp., a poultry business owned by JBS, exceeded its market expectations with net revenue of $4.55 billion, up 5.8% from the $4.3 billion in 2023.

“The global portfolio showed significant growth in profitability in the annual comparison,” JBS said of Pilgrim’s Pride. The company remained disciplined in executing its strategy and continued to expand relationships with key customers, further improving the level of service as market fundamentals became increasingly attractive.”

Pilgrim’s Pride also reported its highest quarterly EBITDA in history.

JBS’ Seara business recorded a net revenue of $2.2 billion, up 6.7% from last year. The company also saw a significant increase in the adjusted EBITA margin increase by 13.3% compared to the same period in 2023.  

JBS Australia revenue for the quarter was $1.65 billion, an increase of 9.5% year-over-year.

For the quarter, JBS exports totaled $3.9 billion, which is 2.4% higher than the second quarter of 2023.