JBS S A : Reports Margin Expansion and Net Profit of R$ 573 Million in Q3

JBS's operating cash flow hit R$ 6.3 billion in Q3 2023, up 20% from Q2

JBS, one of the world's leading food companies, wrapped up Q3 of 2023 with a net profit of R$ 573 million, bouncing back from the previous quarter's losses, and net revenue of R$ 91 billion, a 2.3% increase over Q2 2023. These figures reflect the successful outcome of the company's initiatives across various regions and business units, aimed at overcoming challenging external conditions.

"The third quarter of 2023 shows we're on a solid track to recovery, following the trajectory we had indicated in previous quarters," states Gilberto Tomazoni, Global CEO of JBS. In this vein, JBS has honed its strategies on business segments that started the year below expectations.

Diversification Remains a Competitive Edge

The company's global presence across key producer and consumer markets proved its strategic value this quarter. "Our long-term vision for JBS is unchanged. Our unique multi-geographic and multi-protein platform makes us more resilient against challenges in any specific geography or line of business. We'll keep driving growth through diversification, innovation, high-value products, and strong brands," Tomazoni emphasizes.

Strong Cash Flow and Debt Under Control

JBS's operational cash flow reached R$ 6.3 billion, marking a 20% increase from the previous quarter. Free cash flow nearly doubled to R$ 3.4 billion, with a notable improvement in working capital by R$ 1.7 billion. In the prior quarter, free cash flow was at R$ 1.8 billion, and R$ 380 million in the first quarter.

JBS closed the quarter with R$ 27.7 billion in cash and has US$ 3.3 billion available in unsecured revolving credit lines, including US$ 2.9 billion for JBS USA and US$ 450 million for JBS Brazil, equivalent to R$ 16.8 billion at the period's closing exchange rate. Thus, the company's total availability stands at R$ 44 billion. The firm's net debt settled at US$ 16.1 billion (R$ 80.4 billion), a reduction of around US$ 600 million compared to the end of Q2 2023.

"This once again proves that we are well-equipped to navigate this period safely. We've extended the average term of our debt to 12 years, increased liquidity, and reduced borrowing costs, reaffirming our commitment to financial discipline and reducing our debt. Starting from the last quarter of 2023, we'll begin a structural deleveraging process for the company," says Gilberto Tomazoni.