HORRIFIC trading conditions for the company’s United States beef division were offset by strong results in Australia and Brazil in JBS’s first quarter results posted overnight.

For the first quarter ended 31 March, JBS’s global protein business produced net sales of US$21.6 billion, up 11 percent on the same period last year, while adjusted pre-tax earnings fell by a dramatic 30pc, to US$916 million, over the same period.

JBS operates enormous beef, pork and chicken operations in the United States, as well as large beef and value-adding divisions in South America and Australia. The Australian division covers beef, lamb and pork processing, plus smallgoods and aquaculture businesses.

All six global divisions (US beef, US chicken, US pork, JBS Brazil, JBS Australia and the Seara value-added products business) posted sales growth last quarter, however in terms of profitability, results were mixed, to say the least.

JBS Australia reported net sales worth US$2.145b for the quarter, up 32pc on last year, driven by higher red meat prices in both domestic and export markets.

The beef segment in Australia delivered strong revenue growth, supported by higher prices and volumes, shareholders were told. Strong commercial dynamics, combined with continued operational efficiency gains, more than offset 30pc year-over-year increase in Australian cattle costs, JBS global chief executive Gilberto Tomazoni said in commentary.

Adjusted pre-tax earnings in the Australian business reached US$152m, down 10pc year-on-year from $169m. Beyond the beef segment in Australia, EBITDA improved, particularly in pork and aquaculture, driven by operational execution and higher productivity, JBS said.

Results when reported in Australian dollars remained stable compared to the same period last year, however the adverse movement of the US dollar against the A$ impacted the conversion of the results into US$.

Elsewhere, in JBS’s Brazil beef operations, record sales were reported for the first quarter, reaching US$3.79b, up 19.5pc on last year. The revenue growth reflected mainly higher beef prices, shareholders were told.

In Brazil’s export market, strong revenue growth was driven by higher prices and volumes, supported by robust global demand and JBS’s geographic diversification strategy, which boosted sales across several strategic regions, including China.

Live cattle prices in Brazil rose 6pc compared with the same quarter last year. Despite the improvement in net revenue, profitability in the company’s Brazilian beef operations was pressured by elevated cattle costs, with EBITDA of US$172m.

Tough conditions in US business

In sharp contrast, JBS’s US Beef division continued to struggle under the burden of acute slaughter cattle shortage as the national beef herd hits 75 year lows.

JBS Beef North America reported record sales for a first quarter, with cutout values (and retail beef prices) remaining at historically high levels, reaching US$7.16b, up 11pc on the same time last year. Resilient US consumer demand supported this performance, the company said.

However the dramatic increase in US live cattle prices outpaced the change in cutout values, reflecting the low cattle availability. Additionally, live cattle imports from Mexico remained suspended due to concerns over Screwworm Fly, further constraining cattle supply in the US market.

In this context, industry spreads remained significantly pressured, particularly in January and February, JBS said.

As a result, adjusted pre-tax earnings in the US beef business fell by 103pc compared with last year, to negative US$230m – somewhat worse than the US$113m loss recorded in the first quarter last year.

In further evidence of the tough US processing environment this year, JBS’s major rival Tyson last week adjusted its forecast for its full-year US beef  division results to include an operating loss of $350-$500 million in fiscal ‌2026.