JBS, a global food company, ended 2022 with the highest revenue in its history, R$375 billion, which represents a growth of 6.9% compared to 2021. This result consolidates JBS as one of the global leaders in the food industry. Even in the face of the globally challenging scenario, the company once again demonstrated the success of its geographic and protein diversification strategy, with resilient adjusted EBITDA that reached BRL 34.6 billion in 2022, and free cash generation of BRL 2.1 billion in the year.
“Despite the current challenging global economic scenario and the normalization of margins in the U.S. beef market, we entered 2023 with a comfortable cash position, stabilized debt and no significant debt maturities in the near term, which allows us to navigate resiliently at this time and leave us well-positioned to prepare for future market opportunities. We are confident in our diversified global platform,” said Gilberto Tomazoni, Global CEO of JBS.
The macroeconomic scenario has not prevented JBS from continuing to invest to expand its production capacity and modernize its operations. In 2022, JBS allocated R$13.1 billion to the expansion of its assets and acquisitions. With this, the company strengthens the growth avenues for the future, since these investments were especially focused on expanding production in value-added items. Seara’s expansion in Brazil, as well as the new units of pork-based prepared foods and Italian specialties in the United States, are examples of this strategy.
“We have a lot of value to capture from our recent investments, with ample potential to strengthen our growth and cash generation. Our diverse platform, our experienced team, our constant innovation and our focus on operational excellence are strengths to add value and meet the needs of our customers and consumers,” says Tomazoni.
Financial health
In 2022, JBS consolidated its position as Full Investment Grade, investment grade by the three main credit rating agencies – S&P, Moody’s and Fitch. This allows JBS to enjoy lower interest rates and was essential for the company’s successful liability management moves during the year.
Some examples of this strategy were the issuance of US$ 6 billion in Senior Notes and CRA (Agribusiness Receivables Certificate) in the amount of R$ 2.8 billion, in addition to advance payments of Senior Notes in the amount of approximately US$ 2.3 billion. With these moves, JBS extended its debt to an average maturity of 10 years, keeping the cost at lower levels. In addition, there are no covenants for the debts or significant amortization in the coming years, which preserves cash.
The Company ended the year with a very healthy level of leverage of 2.29x in reais and 2.26x in dollars. “We ended the year with R$13.2 billion in cash and US$3.2 billion available in revolving credit lines, equivalent to R$16.7 billion at the year’s closing exchange rate. As a result, the company’s total availability is R$30 billion, more than three times higher than its short-term debt,” said Guilherme Cavalcanti, CFO of JBS.
Our financial strength has allowed JBS to continue to create value for shareholders. In 2022, the company distributed BRL 4.4 billion in dividends and, considering the repurchase of BRL 2.8 billion in shares last year, provided a total return of 15%. Return on Invested Capital (ROIC) was 18%. Last year, JBS posted a net profit of BRL 15.5 billion, down 24.5% from 2021.
Quarterly results
The fourth quarter of 2022 was especially challenging, with seasonal and external issues negatively influencing the performance of JBS’s operations. The Company closed the period with Net Income of R$2.3 billion (-63.7% y/y), Net Revenue of R$93 billion (-4.5% y/y), adjusted EBITDA of R$4.6 billion (-65.2% y/y) and Free Cash Generation of R$1.2 billion (-78.8% y/y).
“Our global multi-protein platform, our competitive operating cost structure, the strength and agility of our experienced global team and our robust financial condition give us confidence and certainty that JBS will continue to follow its growth trajectory with value creation for our stakeholders, expanding our business and fulfilling our purpose of feeding the world with the best”, says Tomazoni.
