In a press release dated November 13th JBS SA. (JBSAY) announced results for the 3rd Quarter of FY 2023 ending September 30th. The Company missed consensus estimates on earnings that declined by 85 percent from the 3rd Quarter of FY 2022.
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.)
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Third Quarter ending September 30th.
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2023
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2022
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Difference (%)
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Sales:
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$18,729,700
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$18,845,500
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-7.2
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Gross profit:
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$2,264,700
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$3,092,9000
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-26.8
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Operating income:
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$540,100
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$1,286,000
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-58.0
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Pre-tax Income/(Loss)
Net Income/(Loss)
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$162,100
$117,300
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$1,049,900
$746,600
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-84.5
-84.2
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Diluted earnings per share:
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$0.05
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$0.34
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-85.2
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Gross Margin (%)
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5.5
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16.4
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-66.5
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Operating Margin (%)
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<0.1
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0.7
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>100
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Profit/(Loss) Margin (%)
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<0.1
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4.0
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>100
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Long-term Debt: September 30th 2023/2022
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$19,744,000
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$15,543,000
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+27.0
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12 Months Trailing:
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|
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Return on Assets (%)
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1.8
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|
|
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Return on Equity (%)
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2.7
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|
|
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Operating Margin (%)
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2.9
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|
|
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Profit Margin (%)
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0.3
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|
|
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Total Assets: June 30th 2023/2022
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$42,902,911
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$41,622,126
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+7.5
|
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Market Capitalization
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|
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Segment Revenue ($ million) EBITDA ($ million)
JBS USA Beef $5,953 $103
JBS US Pork $2,027 $209
Pilgrim’s Pride Corp. $4,356 $450
SEARA $2,092 $116
JBS Brazil $2,959 $ 99
JBS Australia $1,575 $136
Others $ 141 $ (4)
52-Week Range in Share Price: $6.20 to $9.24 50-day Moving average $7.80
Forward P/E 3.9 Beta 0.3
JBS SA Exports from Brazil, Total Q3 2023, $5,400 million:
China 28.1%; Africa/MS, 12.2%; Japan, 10.1%; S.Korea, 8.1%; U.S., 9.2%;
E.U., 5.8%; Other, 26.6%.
In commenting on results Gilberto Tomazoni, CEO Global JBS stated, “The results in the third quarter of 2023 demonstrate that we are on a path of consistent recovery, as we have indicated in previous quarters. Thanks to the strength of our globally diversified platform across geographies and proteins, and the implementation of significant improvements in managing our operations in Brazil and the United States, we have nearly added one percentage point to our consolidated EBITDA margin compared to the second quarter of this year, reaching 5.9 percent. This evolution in our cash generation also reflects our commitment to the fundamentals of our debt policy”.
Addressing performance in operating segments Tomazoni said “We continue to work toward restoring the profitability of two of our businesses that were performing below potential. In Seara, we have executed the majority of our previously identified adjustments. This should positively impact our results in the coming quarters. There is still room for improvement in results with the ramp-up from the new facilities, which are not yet operating at full capacity. We are very optimistic about the prospects of this business”. He added “In our U.S. beef business, operational measures adopted since March this year in the commercial and industrial areas are helping us navigate through the lowest point of the cattle cycle. The margins of the operation are showing gradual recovery, even in a scenario of tighter spreads and reduced cattle supply, demonstrating our commitment to operational excellence”.
Tomazoni concluded, “Our chicken and pork businesses are already benefiting from the reduction in grain prices, as seen in the results of Pilgrim’s and U.S. pork. The margins of our U.S. pork business have shown strong evolution, increasing from 1.5 percent in the second quarter of 2023 to 9.5 percent in the third quarter, also boosted by strong consumer demand. Similarly, our beef operations in Brazil and Australia are increasingly ready to capture the opportunities presented by more favorable cycles in both markets, and this movement is expected to intensify from the next quarter onward”.