JBS more than doubles profit in 2014
March 14, 2015
Global beef producer JBS grew by double digits in all three U.S. protein units last year, noting that its U.S. beef unit more than doubled its earnings from 2013.
Company officials lauded lower energy prices in America as key to expected future growth.
"The reduction in the cost of energy and a consequent improvement in disposable income of American households should positively influence protein consumption in that market," reported JBS President and CEO Wesley Batista in the year-end earnings report for the global company, JBS SA, the umbrella company for JBS USA, headquartered in Greeley, Colo. "We believe that this dynamic will be extremely beneficial to our business."
Overall, the global company's net income grew 120 percent over 2013 to $632 million in U.S. dollars. Net sales for the global company were up 30 percent from 2013, according to a company earnings report, netting an 81 percent increase in earnings over the year to $3.5 billion.
» Pilgrim's Pride, the poultry business owned by JBS and headquartered in Greeley, reported earnings of $1.35 billion before interest, taxes and other expenses, a 67 percent increase from 2013.
"Pilgrim's Pride … performed really well in 2014, as a result of a management committed to reduced production costs, high levels of productivity and rationalization of its sales mix," Batista said in the report.
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» The U.S. beef unit for JBS, which includes operations in Australia and Canada, showed $21.6 billion in revenue, with earnings before interest, taxes and other expenses of $916.1 million, which more than doubled over 2013.
» JBS pork operations brought in $3.8 billion in revenues, and earnings before interest, taxes and other expenses of $406 million, a 78 percent increase over the year before.
Global exports totaled $16.2 billion, a growth of 38 percent over 2013.
"We feel confident that the market has an increasing better perception of our business and strategy," Batista said in the report. "Our results for 2014 show that we are going in the right direction."
Company officials reported they will continue to focus on efficiencies and costs savings this year, and stay away from further acquisitions.
-Bridgett Weaver, Reporter