JBS’s global footprint pays off in solid full-year financial result
by Jon Condon, BEEF Central (Australia)
17 March 2017
THE diversified global nature of the world’s largest meat processor, JBS, paid dividends with a set of solid financial results reported this week for the company’s full year ended December 31.
Whereas a year earlier, JBS’s Australian operations were one of the star performers, the cycle has turned somewhat and the company’s US beef operations are now benefiting from greater access to slaughter cattle and lower US cattle prices.
Across the company’s entire beef, pork and chicken processing, and value-added operations in North and South America, Australia and Europe, JBS reported pre-tax earnings last year of A$4.75 billion (down 15.1pc), net revenue of A$71.57 billion (up 4.6pc), and net income of A$158 million. Gross profit was A$8.94 billion, 5pc lower year-on-year.
JBS global chief executive, Wesley Batista, said the company’s 2016 year was focused on consolidating recent acquisitions and implementing the company’s strategy to generate value through the expansion and diversification of its portfolio of value-added products. Attention also continued to focus on enhancing the recognition of JBS brands in each business segment and region.
Moves to diversify the company’s production platform, proved once again to be an important competitive advantage...
US beef division results, including Australia
Within the JBS USA Beef division (which includes operations in Australia and Canada, which are not reported separately) net revenue last year totalled A$26.72 billion, down 7.1pc compared to 2015. Pre-tax earnings were A$614 million, 20pc lower than the previous year, as a consequence of the challenging results recorded during the first half of the year in the US operations, offset by a positive performance during the second half of the year.
In the US beef business, the increase in cattle availability and the reduction in cattle prices contributed...
Australia’s ‘significant relevance’ ...
Progress in sustainability drive ...
Shift in export focus
One of the points of interest in statistics in JBS’s 2016 financial results was the distinct shift in destinations for the company’s export meat trade.
In the pie chart published here...
more, including chart
JBS Longford employees suspended for another four weeks
Johanna Baker-Dowdell, The Examiner (Australia)
17 Mar 2017
JBS Swift’s Longford abattoir employees awaiting the news they could go back to work were disappointed yesterday when the company extended their suspension for a further four weeks.
This announcement comes after 130 employees were suspended in late February.
The company cited a sheep and lamb shortage as the reason and JBS representative John Berry said the situation had remained the same since the initial announcement.
“It’s happening across the whole east coast of Australia,” Mr Berry said.
JBS will review its position next month and make further decisions about the suspension then.
“We will talk more closer to the four-week mark,” he said.
The Australian Meat Industry Employees Union (AMIEU) Tasmanian state secretary Troy Baker said the suspension meant the JBS abattoir workforce was in limbo.
“Obviously it’s disappointing,” Mr Baker said...