Asia's growing appetite for beef helps Brazil's JBS to earnings beat

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SAO PAULO :The world's largest meat company JBS SA posted third-quarter net income that exceeded analysts' expectations on the strength of its United States meat business, exports to China and higher domestic food sales.According to a financial statement on Wednesday, JBS profited 7.58 billion reais (US$1.8 b

SAO PAULO :The world's largest meat company JBS SA posted third-quarter net income that exceeded analysts' expectations on the strength of its United States meat business, exports to China and higher domestic food sales.

The company showed double-digit margins in its U.S.-based beef, poultry and pork units, and also at its Seara unit in Brazil. In the United States, cattle availability remained stable, but cattle prices rose by up to 22per cent compared to the same quarter last year, pressuring costs on its biggest market by sales.

In Brazil, JBS said a Chinese ban on beef imports from the country affected slaughtering. However, as the company operates in many markets, it can use the United States or other origins to sell meat to China.

 

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