SAO PAULO, March 25 - Brazil-based JBS, the world's largest meat company, posted a marginally higher fourth-quarter net profit even as revenue hit a record high, according to the company's quarterly results released on Wednesday.
Net profit for the October-to-December period was $415 million, up 0.5% from the same quarter a year earlier. That figure, however, was slightly below the $428 million forecasted by analysts polled by LSEG. The company delivered a historically high top line, with net revenue rising 15% year-on-year to $23.06 billion, exceeding analyst estimates of $22.38 billion. The revenue increase was driven by record sales in both the company's North American and Brazilian beef operations.
While sales volumes and revenue reached new highs, profitability was constrained by tighter cattle availability in the United States. JBS said reduced cattle supply in the U.S. lifted cattle prices, which weighed on margins in its North American beef division - the firm's largest business by revenue. The pressure from higher input costs contributed to an overall decline in profitability metrics.
Total adjusted earnings before interest, taxes, depreciation and amortization - adjusted EBITDA - decreased by 7% to $1.72 billion. That result, however, came in above analysts' projections of $1.56 billion. The adjusted EBITDA margin slipped 1.8 percentage points to 7.4%, reflecting the combined effect of stronger revenue but higher cattle costs and compressed margins in core operations.
Investment tool mention included in results release
The company's report also included an investor-focused note asking whether investors should be buying JBSS32 now and described the use of an AI-based evaluation tool called ProPicks AI. That text outlined that ProPicks AI assesses JBSS32 alongside thousands of other companies each month using more than 100 financial metrics to generate stock ideas. The note stated the AI evaluates fundamentals, momentum, and valuation without bias and cited prior winners identified by the tool, naming Super Micro Computer and AppLovin with listed past performance figures.
What this means for markets
- JBS delivered record revenue but limited bottom-line growth as cost pressures offset higher sales.
- The North American beef business experienced margin compression tied to higher U.S. cattle prices and tighter cattle availability.
- Adjusted EBITDA fell year-on-year despite beating analyst projections, and the adjusted EBITDA margin declined to 7.4%.
The company's results highlight the tension between top-line expansion and input-cost-driven margin pressure in large protein processors. The figures underscore the sensitivity of margins in meat processing to livestock supply dynamics and commodity price movements.