JBS ended 2022 with the highest revenue in its history
JBS, a global food company, ended 2022 with the highest revenue in its history, BRL 375 billion (1 BRL=0,18 EUR), which represents a 6.9% growth compared to the accumulated result for 2021. This result consolidates JBS as one of the global food leaders. 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 R$ 34.6 billion in 2022, and free cash generation of R$ 2 .1 billion in the year.
"Despite the current challenging global economic scenario and the normalization of margins in the US beef market, we enter 2023 with a comfortable cash position, stabilized debt and no significant debt maturities in the short term, which allows us to navigate with resilience at this time and leave us well-positioned to prepare for future market opportunities. We trust in our diversified global platform", highlights Gilberto Tomazoni, Global CEO of JBS.
The macroeconomic scenario did not prevent JBS from continuing to invest in expanding its production capacity and modernizing its operations. In 2022, JBS invested R$13.1 billion in expanding its assets and in acquisitions. With this, the company strengthens the growth avenues for the future, as these contributions were focused especially on expanding production in value-added items. The expansion of Seara in Brazil, in addition to the new units of pork-based prepared foods and Italian specialties in the United States, are examples of this strategy.
"We have a lot of value to capture from our recent investments, with ample potential to strengthen our growth and cash generation. Our diversified platform, our experienced team, our constant innovation and our focus on operational excellence are strengths to add value and meet the needs of our customers and consumers", says Tomazoni.
In 2022, JBS consolidated its position as Full Investment Grade , investment grade in the three main risk rating agencies - S&P, Moody's and Fitch. This allows JBS to enjoy funding conditions at lower interest rates and was essential for the successful liability management initiatives carried out by the company during the year.
Some examples of this strategy were the issuance of US$ 6 billion in Senior Notes and CAR (Certificate of Agribusiness Receivables) 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 lengthened its debt to an average term of 10 years, keeping the cost at lower levels. In addition, there are no debt covenants or significant amortization over the next few years, which preserves cash.
The Company ended the year with leverage at a very healthy level, 2.29x in reais and 2.26x in dollars. "We ended the year with R$ 13.2 billion in cash and we have US$ 3.2 billion available in revolving credit lines, equivalent to R$ 16.7 billion at the year-end exchange rate. As a result, the company's total availability is R$ 30 billion, more than three times greater than the short-term debt", highlights Guilherme Cavalcanti, CFO of JBS.
Our financial strength has allowed JBS to continue to create shareholder value. 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%. The Return on Invested Capital (ROIC) was 18%. Last year, JBS recorded a net profit of BRL 15.5 billion, a decrease of 24.5% compared to 2021.
The fourth quarter of 2022 was especially challenging, with seasonal and external issues that negatively influenced the performance of JBS operations . The Company ended 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 multiprotein global 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 tread its path of growth with generation of value for our stakeholders, expanding our business and fulfilling our purpose of feeding the world with the best there is", says Tomazoni.
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