JBS Swung to Net Loss in 2Q on Higher Beef Cost

By Jeffrey T. Lewis

SÃO PAULO--JBS swung to a net loss in the second quarter after an oversupply of poultry in world markets hit retail prices and the reduced availability of cattle in the U.S. raised costs.

JBS posted a net loss of 263.6 million reais, the equivalent of $53 million, compared with net income of BRL4.0 billion in the year-earlier period. Net revenue fell to BRL89.4 billion from BRL92.2 billion.

The glut of chicken made it more difficult for JBS and rivals to raise prices, while the reduced availability of cattle for processing in the U.S. meant higher costs.

JBS's cost of goods sold for its North American beef business jumped 19% from a year earlier to BRL22.8 billion, the company said.

Write to Jeffrey T. Lewis at [e-mail]

(END) Dow Jones Newswires

08-14-23 1757ET