JBS S.A. JBS ENDS 2Q23 WITH
NET REVENUE OF US$18.1 BILLION
AND EBITDA OF US$903 MILLION
São Paulo, August 14, 2023 - JBS S.A. (B3: JBSS3; OTCQX: JBSAY), announces today its 2Q23 results. The comments made herein are in US dollars, in accordance with international accounting standards (IFRS), unless otherwise specified.
2Q23 HIGHLIGHTS
JBS (JBSS3)
Price on 14.08.2023 US$3.90
Market Cap on 08.14.2023 US$8.7 Billion
Total Shares: 2.218.116.370
Conference Call JBS S.A. & JBS USA Tuesday 15.08.2023
Portuguese
9h BRT | 08h EST
English
11h BRT | 10h EST
Dial-in
Brazil:
+55 11 3181-8565
+55 11 4090-1621
International:
+1 844 204-8942
+1 412 717-9627
IR Contacts Guilherme Cavalcanti Christiane Assis Pedro Bueno Felipe Brindo
Vitor Figueira Amanda Narihisa ri_ir@jbs.com.br
CONSOLIDATED
- Net Sales: US$18.1 bi (-3.6% y/y)
- Adjusted EBITDA:US$902.8 mi (-57.1% y/y)
- Adjusted EBITDA Margin: 5.0% (-6.2 p.p. y/y)
- Net Loss: US$53.2 mi
OPERATIONAL AND FINANCIAL HIGHLIGHTS IN IFRS
JBS BEEF NORTH AMERICA
Net Sales: US$5.8 bi (+5.2% y/y)
Adjusted EBITDA:US$87.5 mi (-85.9% y/y)
Adjusted EBITDA Margin: 1.5% (-9.7 p.p. y/y)
JBS AUSTRALIA
Net Sales: US$1.5 bi (-9.9% y/y)
Adjusted EBITDA:US$143.5 mi (-0.9% y/y)
Adjusted EBITDA Margin: 9.5% (+0.9 p.p. y/y)
JBS USA PORK
Net Sales: US$1.8 bi (-15.8% y/y)
Adjusted EBITDA:US$78.0 mi (-43.5% y/y)
Adjusted EBITDA Margin : 4.4% (-2.2 p.p. y/y)
PPC
Net Sales: US$4.3 bi (-7.0% y/y)
Adjusted EBITDA:US$375.3 mi (-49.2% y/y)
Adjusted EBITDA Margin: 8.7% (-7.2 p.p. y/y)
SEARA
Net Sales: US$2.1 bi (-4.1% y/y)
Adjusted EBITDA:US$84.8 mi (-72.3% y/y)
Adjusted EBITDA Margin : 4.1% (-10.0 p.p. y/y)
JBS BRASIL
Net Sales: US$2.8 bi (-1.5% y/y)
Adjusted EBITDA:US$136.5 mi (-16.4% y/y)
Adjusted EBITDA Margin: 4.8% (-0.9 p.p. y/y)
- Announcement of the dual listing plan in Brazil (B3) and the US (New York Stock Exchange) with the aim of increasing the Company's market value, attracting a wider range of investors, and expanding the investment capacity.
- JBS obtained with the SEC (Securities and Exchange Commission) the effectiveness to register its eleven senior notes.
- Payment of interim dividends in the amount of US$448 million, corresponding to US$0.20 per share, that may be netted against mandatory minimum dividends for the fiscal year ending December 31, 2023.
MESSAGE FROM THE CEO
The results of this 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.
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.
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.
The results in Australia show an improvement in the cattle supply cycle, which is reflected in the increase of our margin in the region, reaching 9.5%. In Brazil, in the beef segment, the consistent work to expand sales of higher value-added products, strengthening of partnerships with suppliers and customers, increasing domestic market demand, and opening of new foreign markets reinforce our perception of a positive situation for the upcoming quarters. In the United States, the challenges for beef will continue.
Even with market challenges, investing in the expansion of our operations and distributing R$ 2.2 billion 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.
These factors also reinforce our view that JBS has a unique position in the global protein industry, and we believe we have not yet captured all the value this platform offers. Therefore, we understand that our dual listing proposal, announced this quarter, is a transformational move to build the company's new growth avenues.
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.
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.
Gilberto Tomazoni, CEO Global JBS
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2Q23 CONSOLIDATED HIGHLIGHTS
18,735
18,052
2Q222Q23
ADJUSTED EBITDA
$902.8Mn
11.2%
NET REVENUE
$18.1Bn
NET LOSS
-$53.2Mn
2,106
5.0%
803
903
2Q222Q23
FREE CASH FLOW
$366.2Mn
2Q23
2Q22-53
366
77
2Q222Q23
Note: graphs in millions | 3 |
2Q23 CONSOLIDATED RESULTS
CONSOLIDATED NET REVENUE
2Q23 | 1Q23 | ∆% | 2Q22 | ∆% | LTM 2Q23 | |||||
US$ Million | US$ | % NR | US$ | % NR | 2Q23 vs 1Q23 | US$ | % NR | 2Q23 vs 2Q22 | US$ | % NR |
Net Revenue | 18,052.1 | 100.0% | 16,687.2 | 100.0% | 8.2% | 18,735.2 | 100.0% | -3.6% | 71,254.0 | 100.0% |
Cost of Goods Sold | (16,055.2) | -88.9% | (15,221.5) | -91.2% | 5.5% | (15,445.4) | -82.4% | 3.9% | (62,664.8) | -87.9% |
Gross Profit | 1,996.9 | 11.1% | 1,465.8 | 8.8% | 36.2% | 3,289.8 | 17.6% | -39.3% | 8,589.1 | 12.1% |
Selling Expenses | (1,146.9) | -6.4% | (1,111.8) | -6.7% | 3.2% | (1,160.3) | -6.2% | -1.2% | (4,680.5) | -6.6% |
General and Adm. Expenses | (510.8) | -2.8% | (514.2) | -3.1% | -0.6% | (563.6) | -3.0% | -9.4% | (2,144.4) | -3.0% |
Net Financial Income (expense) | (336.9) | -1.9% | (299.2) | -1.8% | 12.6% | (510.5) | -2.7% | -34.0% | (1,327.0) | -1.9% |
Equity in earnings of subsidiaries | 3.0 | 0.0% | 2.8 | 0.0% | 9.2% | 4.2 | 0.0% | -28.5% | 10.5 | 0.0% |
Other Income (expense) | (31.2) | -0.2% | 42.9 | 0.3% | - | (1.6) | 0.0% | 1900.6% | 229.9 | 0.3% |
Profit (loss) before taxes | (25.9) | -0.1% | (413.7) | -2.5% | -93.7% | 1,058.1 | 5.6% | n.a. | 677.5 | 1.0% |
Income and social contribution taxes | (14.2) | -0.1% | 138.5 | 0.8% | - | (187.5) | -1.0% | -92.5% | 240.9 | 0.3% |
Minority interest | (13.2) | -0.1% | (4.4) | 0.0% | 197.3% | (67.4) | -0.4% | -80.4% | (39.6) | -0.1% |
Net Income (Loss) | (53.2) | -0.3% | (279.6) | -1.7% | -81.0% | 803.2 | 4.3% | -106.6% | 878.8 | 1.2% |
Adjusted EBITDA | 902.8 | 5.0% | 416.3 | 2.5% | 116.9% | 2,106.0 | 11.2% | -57.1% | 4,007.9 | 5.6% |
Earnings per Share | n.a. | n.a. | - | 0.36 | - | 0.40 |
NET REVENUE
In 2Q23, JBS recorded consolidated net revenue of US$18.1 billion, which represents a decrease of 3.6% compared to 2Q22.
For the period, approximately 74% of JBS global sales were made in the domestic markets in which the company operates and 26% through exports.
In the last 12 months, net revenue reached US$ 71.3 billion.
ADJUSTED EBITDA
In 2Q23, JBS adjusted EBITDA was US$902.8 million, a decrease of 57.1%, compared to a very strong EBITDA disclosed in 2Q22, but there was also an important improvement compared to the last quarter. Adjusted EBITDA margin was 5.0% in the quarter.
In the last 12 months, adjusted EBITDA reached US$4.0 billion, with an adjusted EBITDA margin of 5.6%.
US$ Million | 2Q23 | 1Q23 | ∆% | 2Q22 | ∆% | ||
Net income for the period (including minority interest) | (40.0) | (275.2) | - | 870.6 | - | ||
Financial income (expense), net | 336.9 | 299.2 | 12.6% | 510.5 | -34.0% | ||
Current and deferred income taxes | 14.2 | (138.5) | - | 187.5 | -92.5% | ||
Depreciation and amortization | 536.7 | 499.1 | 7.5% | 478.4 | 12.2% | ||
Equity in subsidiaries | (3.0) | (2.8) | 9.2% | (4.2) | -28.5% | ||
(=) EBITDA | 844.7 | 381.9 | 121.2% | 2,042.7 | -58.6% | ||
Other income / expenses | 34.5 | 8.2 | 320.2% | 6.9 | 402.8% | ||
PPC Insurance Indemnity | 0.0 | (19.1) | - | 0.0 | - | ||
PPC Europe Reestructuring | 0.0 | 8.0 | - | 0.0 | - | ||
Impairment Planterra Assets | 0.9 | 20.8 | -95.6% | 0.0 | - | ||
Net indemnity J&F* | 0.0 | 0.0 | - | 0.0 | - | ||
Antitrust Agreements | 18.0 | 13.7 | 31.4% | 48.5 | -62.9% | ||
Fund for the Amazon | 0.0 | 0.0 | - | 0.0 | - | ||
Donations and social projects | 4.7 | 2.7 | 70.5% | 8.0 | -41.6% | ||
(=) Adjusted EBITDA | 902.8 | 416.3 | 116.9% | 2,106.1 | -57.1% | ||
* Value Net of PIS/COFINS |
LTM 2Q23
918.4
1,327.0
(240.9)
1,999.9
(10.5)
3,994.0
16.7
(19.1)
8.0
21.7
(93.8)
67.7
0.5
12.1
4,007.9
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2Q23 CONSOLIDATED RESULTS
NET FINANCIAL RESULTS
In 2Q23, net debt financial expense was US$265 million.
US$ Million | 2Q23 | 1Q23 | ∆% | 2Q22 | ∆% | LTM 2Q23 |
Exchange rate variation | 3.4 | 53.9 | -93.8% | (102.2) | - | 70.6 |
Fair value adjustments on derivatives | 15.2 | (14.7) | - | (8.5) | - | (105.4) |
Interest expense¹ | (422.6) | (395.1) | 6.9% | (347.4) | 21.6% | (1,532.8) |
Interest income¹ | 79.6 | 67.6 | 17.7% | 63.6 | 25.1% | 307.8 |
Taxes, contribution, fees and others | (12.5) | (10.9) | 14.8% | (116.1) | -89.3% | (86.2) |
Finance income (expense) | (336.9) | (299.2) | 12.6% | (510.5) | -34.0% | (1,346.1) |
Interest expenses from loans and financings | (284.6) | (280.7) | 1.4% | (238.9) | 19.2% | (1,339.9) |
Interest income from investments | 19.9 | 17.5 | 13.8% | 18.5 | 7.5% | 93.3 |
Net debt financial expense¹ | (264.8) | (263.2) | 0.6% | (220.4) | 20.1% | (1,246.6) |
¹¹Includes the interest expenses from loans and financings which are included in the interest expense and interest income lines..
NET RESULT
In 2Q23, JBS recorded a net loss of US$ 53.2 million.
CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH FLOW
In 2Q23, cash flow from operating activities was US$1.1 billion, an important evolution when compared to the previous quarter. Free cash flow, after adding property, plant and equipment, interest paid and received, was US$366 million, highlighting the improvement of the working capital of US$355 million, mainly due to the reduction in inventories and the improvement in accounts receivable.
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES
In 2Q23, the total amount of cash flow from JBS investment activities was US$373 million, with the main investment being the addition of fixed assets (CAPEX) in the amount of US$394 million in the quarter.
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JBS SA published this content on 14 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2023 21:34:34 UTC.
