In the Brazilian domestic market, one of the highlights was fresh poultry sales and volume growth of 83.2% and 97.6%, respectively, compared to Q3 in 2014.
This success was primarily related to the incorporation of Big Frango, Tyson do Brasil and Céu Azul, in addition to an increase of volume sold of higher value added products.
However, the JBS beef, pork and poultry businesses in the US all experienced sales declines. The JBS USA Pork business unit reported net sales of $785.4 million in 3Q15, a decrease of 16.3% compared with 3Q14.
That was partly due to a drop in pork prices, as a consequence of an increase in supply during the period, the company said.
US poultry business Pilgrim’s Pride recorded a 6.9% decrease in net sales to $2.1 billion, due to lower chicken cut prices and lower volumes exported. This was partially compensated by a 30% increase in Mexican sales, related to the acquisition of Tyson’s operations there, JBS said.
Buoyed in Brazil
JBS clocked up sales of 43bn Brazilian Real, an increase of 39.8% compared with the same quarter in 2014.
Gross profit in Q3 was 6.2bn Real, 12.3% higher than the same period last year. Net profit for the period was 3.4bn Real.
2We had a quarter of sustainable sales growth, consistent operating results and robust cash generation and net income,2 said chief executive Wesley Batista.
JBS, which processes beef, pork, lamb, chicken and hides, and sells collagen and biodiesel, has more than 300 production facilities worldwide and over 216,000 employees. The company has dozens of brands in Brazil and abroad, such as Swift, Friboi, Seara, Maturatta, Cabaña Las Lilas, Pilgrim's Pride, Gold Kist Farms, Pierce and 1855. It has plants and offices in 22 countries and its products are sold in 150 countries.
'Invest in innovation'
"We have great confidence in our global food production platform which is being boosted by stronger an increased value added product portfolio and with well recognised brands," said Batista.
"We envisage several opportunities to expand our business in the prepared foods and value added segment. To achieve this goal, we will continue to invest in high quality products, innovation and brands," he added.
The acquisition of the US Cargill Pork business, concluded on 30 October 2015, would enable it to expand its customer base and enhance the portfolio of prepared and branded products, JBS said.
Other acquisitions in the quarter included Northern Ireland-based poultry processor Moy Park.