Detailed Narrative
Global Protein Demand & Strategy
JBS emphasizes the structural growth in global protein consumption, driven by demographics, health awareness, and demand for balanced diets. The company's strategy focuses on strengthening brands, expanding its value portfolio, and developing accessible protein solutions. This approach leverages its multi-protein and multi-geography platform to navigate industry cycles and capture growth opportunities across markets and channels.
US Beef Market Dynamics
The US beef sector faced significant pressure in Q4 FY25 due to limited supply and high costs, a trend expected to persist into coming quarters. The market has become highly volatile with fluctuations in cut-out and cattle prices. Management noted that the first quarter of 2026 has been particularly challenging, with negative spreads for January and February, though March showed signs of improvement.
Pilgrim's Pride & US Chicken Business
The US chicken business benefited from strong demand in both retail and food service, with Pilgrim's Pride achieving volume growth above industry average in segments like case-ready and small bird. Strategic investments in plant transformation to support prepared food production and retail growth are underway, aiming to capture margin from third-party processing and enhance quality control. The USDA forecasts 2% growth in chicken supply for 2026.
Brazil Beef & Seara Performance
Brazil's beef business operated within historical margin ranges, supported by strong exports and steady domestic demand, with Q4 sales growing 26% year-over-year. Seara continued to strengthen its brands and expand high value-added products, with innovation in high-protein, clean-label products driving faster growth than traditional offerings. The company is focused on export leadership and enriching its value-add mix in the domestic market.
Capital Market Position & Dual Listing
The dual-listing process completed in 2025 significantly improved market valuation and liquidity, with average trading volume up approximately 3x compared to prior levels. US-based investors now represent nearly 70% of the company's free float, reinforcing its global capital market position and supporting future growth phases. The company anticipates potential inclusion in the Russell index by June and S&P 400 by next year.
Commodity Cost Outlook
The corn market is expected to see an upward trend and higher costs in 2026 due to reduced global stock, solid demand, increased crude oil prices impacting ethanol margins, and fertilizer costs. Soybean meal prices are anticipated to remain stable due to positive crush margins and abundant supply, though US acreage and biofuel policies require monitoring. Management expects higher costs for corn.