Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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JBS SA (JBSAY) reported a record net revenue of $772 billion, reflecting a 6% growth compared to 2023.
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The company achieved a net income of $1.8 billion and an EBITDA of $7 billion with a consolidated margin of 9.3%.
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JBS SA (JBSAY) successfully reduced its leverage ratio from 4.42 times to 1.89 times EBITDA in US dollars.
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The company distributed $850 million in dividends in October 2024 and proposed an additional $773 million equivalent to $0.35 per share.
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JBS SA (JBSAY) is investing in innovation and brand development, including the construction of the JBS Biotech Innovation Center in Brazil.
Negative Points
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The US market faced headwinds, with JBS Beef North America operating at break-even levels.
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Brazil is experiencing cost pressures due to high corn prices, which could impact margins.
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The Australian operations faced operational disruptions due to weather conditions, affecting margins.
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The company's free cash flow was impacted by receivable discounts, which, if excluded, would have been lower.
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Tariff changes and trade flow uncertainties pose potential risks to JBS SA (JBSAY)'s global operations.
Q & A Highlights
Q: Can you provide insights on the current market conditions in Brazil, particularly regarding cost pressures from Brazilian corn and meal prices? A: (Gilberto Tomazoni, Global CEO) Brazil is currently experiencing high corn prices due to tariff discussions, causing producers to hold back sales. However, this is expected to be a temporary situation. If weather conditions remain favorable, we anticipate a strong crop, which should stabilize or potentially lower corn costs. We are confident in managing these costs through operational efficiency and strategic product and channel mix, as demonstrated by our recent performance in Brazil.
Q: What is the timeline for JBS's dual listing in the US, and what are the key milestones? A: (Iermi Cavalcante, Global CFO) We filed with the SEC recently. Once the SEC approves, we can call a General Assembly, which requires a 45-day notice. Post-approval, there is an implementation period, which we estimate to be around 30 days. We anticipate the US listing to be completed by Q3 2025, assuming everything proceeds smoothly.
Q: How do tariffs impact JBS's global business, and have you seen any changes in trade flows? A: (Wesley Batistafio, CEO of JBS USA) Tariffs are complex, involving multiple variables like counter-tariffs and exchange rates. While it's challenging to predict their exact impact, JBS's diverse global operations position us well to capitalize on any benefits and mitigate risks. Our primary focus remains on the US domestic market, which is less affected by export tariffs.