In a press release dated August 14th JBS SA. (JBSAY) announced results for the 2nd Quarter of FY 2023 ending June 30th.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS.)
|
Second Quarter
|
2023
|
2022
|
Difference (%)
|
|
Sales:
|
$18,052,000
|
$18,735,000
|
-3.6
|
|
Gross profit:
|
$1,997,000
|
$3,290,000
|
-33.3
|
|
Operating income:
|
$340,000
|
$1,566,000
|
-78.2
|
|
Pre-tax Income/(Loss)
Net Income/(Loss)
|
$(26,000)
$(53,000)
|
$1,058,000
$803,000
|
-102.5
-106.6
|
|
Diluted earnings per share:
|
Neg.
|
$0.36
|
Neg.
|
|
Gross Margin (%)
|
11.1
|
17.6
|
-36.9
|
|
Operating Margin (%)
|
1.9
|
8.4
|
-77.4
|
|
Profit/(Loss) Margin (%)
|
(0.3)
|
4.3
|
-107.0
|
|
Long-term Debt: June 30th 2023/2022
|
$18,855,000
|
$17,579,000
|
+7.3
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
3.3
|
|
|
|
Return on Equity (%)
|
10.5
|
|
|
|
Operating Margin (%)
|
2.9
|
|
|
|
Profit Margin (%)
|
1.3
|
|
|
|
Total Assets: June 30th 2023/2022
|
$41,157,000
|
$39,886,000
|
+3.2
|
|
Market Capitalization
|
|
|
|
Segment Revenue ($ million) EBITDA ($ million)
JBS USA Beef $5,811 $83
JBS US Pork $1,777 $27
Pilgrim’s Pride Corp. $4,308 $249
SEARA $2,082 $85
JBS Brazil $2,825 $137
JBS Australia $1,509 $130
52-Week Range in Share Price: $6.20 to $ 12.46 50-day Moving average $7.68
Forward P/E 3.9 Beta 0.3
Capex, $394 million, of which 48 percent for expansion.
JBS SA Exports from Brazil, Total Q2 2023, $4,800 million:
China 30.3%; Africa/MS, 1.3%; Japan, 8.8%; S.Korea, 8.8%; U.S., 8.3%;
E.U., 6.6%; Other, 26.9%.
In commenting on results Gilberto Tomazoni, CEO Global JBS stated, “The second quarter of 2023 once again demonstrated the strength of our diversified global platform and our ability and agility to implement operational management measures to improve our commercial and industrial performance, even in an adverse scenario. Our promising prospects for 2023 have begun to materialize. Although the global context remains challenging for the protein sector, we have confidence that we have started a gradual recovery of our margins.”
Responding to market challenge Tomazoni noted, Facing a situation of increased supply of poultry in the global market and tighter margins in the beef business in the United States, in the second quarter we executed a series of measures aiming to increase the efficiency of our businesses in Brazil and the United States. These initiatives have already started to have an effect on our operations, as shown by the improvement of our margins, reinforcing our belief that we should focus on what we control to achieve superior financial performance in challenging scenarios like the current one for the global protein industry.”
Expressing optimism he observed, “In the coming months, we also see a scenario of a more balanced poultry supply, with potential positive impacts on sector prices, and we are already capturing the decrease in corn prices in our cost structure, a situation that also benefits our pork business.”
Tomazoni added, Even with market challenges, investing in the expansion of our operations and distributing $440 million in dividends, we kept our net dollar debt stable compared to the first quarter of 2023. We are prepared to navigate the current scenario safely, having extended the average term of our debts, increased liquidity and reduced the cost of our debt.”
With regard to the intended IPO on the NYSE Tomazoni stated “Our dual listing strategy will give us more flexibility to finance our growth and de-leverage, in addition to reducing capital costs. We will have access to a broader investor base, with great financial capacity, favoring the unlocking of value of our shares and expanding our investment capacity. With the registration of our bonds in the United States, we are already a company regulated by the Securities and Exchange Commission (SEC) and will also disclose our financial results in dollars. This is aligned with our investors ´ wishes for an easier comparison of our performance against our global peers. It also more accurately represents the company's operational framework, given that a significant portion of our revenue is in dollars”.
He concluded “As JBS celebrates its 70th anniversary, we look to the future with confidence that our global platform, coupled with our culture and strong team, will allow us to continue generating value for our stakeholders, and create opportunities for both the communities where we operate and our more than 260,000 employees around the world.”