SÃO PAULO, Brazil – JBS SA doubled its revenue for the fourth quarter. In its consolidated results the company reported net income of R140.7 million ($60.8 million), which compares to R66.4 million ($28.7 million) posted in the fourth quarter one year ago.
Revenues for the quarter climbed 24.6 percent above the comparable year-ago quarter to R2.72 billion ($1.18 billion). JBS attributed the gains to an increase in revenues from all its business units with Mercosul posting a strong performance.
EBITDA for the quarter was R1.87 billion ($808 million), while EBITDA margin advanced 6.9 percent compared to 5.4 percent a year ago.
"Our financial indicators are better every quarter," said Wesley Batista, CEO. "Each and every one of our business units without exception came up with better results last year when compared with the previous one.
"In 2013, we observed movements in the global economic scenario, which indicate a positive horizon for our business at JBS. The US economy continues to progress, Europe looks to have turned a corner and is entering a period of recovery and the increase in per capita income and urbanization in the emerging economies increases the demand for all meats."
On a segment basis, JBS USA Beef reported net revenue of $4.8 billion for the fourth quarter. Revenues advanced on rising domestic sales volume and a 2.8 percent increase in exports.
Revenues declined 5.3 percent in the company's pork unit to $904.9 million. Animals processed declined 8.8 percent which stifled sales volume in domestic and export markets, the company noted. Prices partially offset volume reduction.
Pilgrim's Pride, a subsidiary of JBS SA, reported net income of $143.2 million for the quarter. Revenues for the segment declined 6.5 percent to $2.04 billion on lower revenues from Mexico coupled with a 5 percent decrease in total volume of birds processed, the company said.
JBS Mercosul posted net revenue of $3.98 billion for the quarter on the consolidation of JBS Foods into Mercosul and a stronger performance of beef operations in Brazil, the company reported. JBS Foods includes the Seara business and the JBS poultry business in Brazil. The company said the JBS Foods segment "recorded a strong turn around in its first quarter of operation" and the company remains confident the segment will deliver solid results through the year.
"We have identified in our business that the word ‘convenience’ is more and more present," Batista said. "A tendency observed in many countries is that people look for more convenience and practicality in food. Translated for our business this means offering to our customers more customized products, easier to prepare and higher value-added.
"Based on this, we created JBS Foods last year. The new business unit combines our poultry and pork assets and processed products in Brazil together with the Seara operations taken over in October 2013,” he added. “In the first three months of this unified operation we have had good results. Strong brands and a portfolio of revitalized products that offer convenience to the consumer are the guidelines that will drive our growth strategy in these categories during the coming years."