JBS first quarter goes well (+27.3%) despite virus effects

JBS first quarter goes well (+27.3%) despite virus effects

Net revenues amount to around 8.9 billion euros, therefore increasing by 27.3%. Estimated gross profits amount to 1.15 billion euros: they have risen by +24.6% compared to the same period of 2019. Finally, as regards EBITDA, earnings reached over 600 million euros, therefore growing, +22.6%, compared to last year. While examining the company’s financial results, one can see that JBS first quarter was positive, very positive actually. During Coronavirus full emergency, the meat multinational corporation can rely on considerable capital assets, 3.7 billion euros, “including a few credit lines formerly negotiated and settled”. Yet, nonetheless, they start facing the pandemic detrimental effects.

JBS first quarter

Early consequences can be observed, for example, while focusing on results achieved by JBS Brasil, the company in control over Couros division, which is up to leather tanning activities. As we said, in the period the overall turnover of the business has reached slightly less than 1.3 billion euros: that is, +20.6% on annual basis, but also -14.8% compared to the previous period, namely 2019 last quarter.

Looking at JBS Brasil revenues, 60% of them come from domestic market, while exports drive the others. Here the pandemic impact turns out to be most relevant. In fact, in their home country JBS sales have been rising, in terms of volumes and value as well; conversely, as regards international markets, they had to deal with a downturn in volumes of sales (-13.2%), offset exclusively by an average increase in prices (+27.3%), subsequently driving overseas revenues, which went up by 10.6%.

Reasons for confidence

“We are undoubtedly experiencing an unprecedented crisis, which is urging the whole society, therefore including all companies, to face and tackle some new challenges. Despite that, our primary aim is still to provide population with groceries while ensuring, at the same time, our employees and partners’ safety – commented Gilberto Tomazoni, JBS Global Chief Executive Officer –. We are striving hard to overcome current difficulties as best as we can. We keep working in our units, 400 in total, all around the world. Thanks to our culture, alongside our experience and our worldwide standing, we may well benefit from a competitive and long-term sustainable advantage”.

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