SÃO PAULO – Led by the global performance of its beef segment, JBS SA reported on net income for the fiscal third quarter ended Sept. 30, totaled 3.13 billion reals ($581.2 million), equal to 1.17 reals per share on the common stock, and a spike of 778% from 357 million reals during the same period the previous year, equal to 0.13 reals per share. Revenue for the quarter rose to 70.1 billion reals, up more than 34% from the previous year’s 52.18 billion reals.
JBS USA Beef’s net revenue for the quarter was $28.8 billion reals, a 28.7% increase over the previous year. Its US-based pork unit posted net revenue of 7.7 billion reals, up 28% over last year.
Beef production in the United States and Canada surpassed Q2 levels this year, which were hindered by COVID-19-related challenges, and volumes rebounded to pre-COVID levels. Beef prices exceeded Q3 of 2019 due to growing demand as cattle supply was steady and increased slaughter numbers pushed finished cattle prices higher compared to last year.
“Additionally, North America exports grew over 2Q 2020, not only in volume, but also in quality and product diversity, increasing their contribution to this business’ results,” according to JBS.
The company noted its pork production levels returned to pre-COVID levels, which offset the year’s lower volumes caused by an interruption in slaughtering operations caused by the temporary closure of its main processing plant earlier in the year.
The announcement of a new bacon processing plant in Missouri, which broke ground in April is on schedule to become operational in 2021, adding more than 24 million lbs of capacity each year. Plumrose also recently announced the company is also planning to build a $200 million ready-to-eat plant designed to produce charcuterie style meat products.
“This unit posted a solid performance in the quarter as a result of its business strategy and operation efficiency. The greater focus and investments in value added products, in operational improvements and also in the establishment and maintenance of relevant commercial partnerships in the domestic and export markets have differentiated the unit's performance,” the company said.
Noting the challenges presented by the global pandemic, the company remains committed to protecting workers and the communities it serves.
“We believe we are on the right path, both in terms of our financial performance and our commitment to society,” said Gilberto Tomazoni, chief executive officer of JBS Global. “JBS understands that no company is truly prosperous without a serious commitment to social responsibility. The company has invested over $520 million in enhanced safety measures to keep our team members safe and to support the local communities during the pandemic.”