JBS Faces Flat Profits Amid Tight US Beef Margins

Brazil's JBS, the globe's leading meatpacker, has reported an almost flat net profit for the fourth quarter, with record-breaking revenue being countered by compressed margins, particularly in its U.S. beef sector.

The meatpacking giant announced a net profit of $415 million for the October-December period, marking a 0.5% increase from the previous year but falling short of the $428 million projection by analysts in an LSEG survey. Notably, net revenue soared 15% to reach a remarkable $23.06 billion, surpassing analysts' expectations of $22.38 billion, fueled by outstanding sales in its beef operations in North America and Brazil.

JBS pointed out that diminished cattle supplies in the United States have contributed to increased livestock costs, thus narrowing margins in its North American beef division, which is the company's largest by revenue. CEO Gilberto Tomazoni informed Reuters that the outlook for U.S. cattle supply will remain challenging this year amid an ongoing downturn in the livestock cycle.