Brazil's JBS and MBRF post mixed Q1 earnings as North America drags

Brazilian meat giant JBS reported a 56% drop in first‑quarter profit to $221 million, missing analysts' forecasts. Adjusted EBITDA fell 26% to $1.13 billion as high livestock prices, weather‑related plant stoppages and a three‑week strike at its Greeley, Colorado beef plant squeezed North American margins. North American operations, which account for a third of JBS sales, posted a negative adjusted EBITDA of $267 million despite revenue rising 12% to $7.17 billion. Brazil’s domestic beef segment performed strongly, with EBITDA up 28% to $168 million and sales reaching a record $3.79 billion.

In the same period, fellow Brazilian processor MBRF saw net profit rise 27% to 111 million reais, driven by a 28% surge in South American beef exports that lifted revenue 23% to 6.15 billion reais. Adjusted EBITDA improved 35% to 616 million reais. However, its North American beef business was hit by extreme weather and cattle shortages, cutting volume by 6%, while poultry and pork divisions posted flat results. Both firms highlighted that robust South American demand helped offset the weakness in North America.