Brazilian meatpacker and hide processor JBS SA has reported its fourth quarter and full 2022 financial results, with revenue up by almost 7% but net income falling dramatically, reports ILM.

The company reported net revenue of R$375 billion (US$71.7 billion) in 2022, an increase of 6.9% year-on-year. Adjusted EBITDA for the period was R$34.6 billion (US$6.62 billion), which was down by 24.3%, while net income was down by 24.5% to R$15.5 billion (US$2.96 billion).

Looking at revenues for the company’s business units during 2022, JBS Beef North America saw revenue drop by 1.4% year-on-year to R$114 billion (US$21.8 billion) while JBS Australia was up by 13.1% to R$32.6 billion (US$6.23 billion) and JBS Brazil was up by 9.6% to R$58.9 billion (US$11.26 billion).

PPC was up by 13% year-on-year to R$90.1 billion (US$17.23 billion), SEARA increased revenue by 17.6% to R$43 billion (US$8.2 billion) and JBS USA Pork was up by 2.5% to R$42.1 billion (US$8.05 billion).

In the fourth quarter of 2022 alone, net revenue totalled R$93 billion (US$17.78 billion) and was down by 4.5% year-on-year. Adjusted EBITDA was R$4.6 billion (US$879.63 million), down 65.2%, and net income fell by 63.7% to R$2.3 billion (US$439.88 million).

In the fourth quarter, revenue for JBS Beef North America dropped by 12.3% to R$28.7 billion (US$5.49 billion), while JBS Australia fell by 4.8% to R$8.2 billion (US$1.57 billion) and JBS Brasil was up by 1.4% to R$14.3 billion (US$2.73 billion). Meanwhile, PPC was down by 3.8% year-on-year to R$21.7 billion (US$4.15 billion), SEARA was up by 9% to R$11 billion (US$2.1 billion) and JBS USA Pork was down by 0.3% to R$10.6 billion (US$2.03 billion).

Gilberto Tomazoni, Global CEO of JBS, said: “We observe that the challenging market conditions that impacted our performance in the fourth quarter of 2022 continue into the first quarter of 2023. which is traditionally a weaker period for the global protein industry. In addition to margin compression in U.S. beef, high inflation in important markets is weakening consumption, causing an imbalance between supply and demand.

“At the same time, we are facing persistent pressure on production costs. Despite the short-term scenario, we have confidence in the medium and long-term results based on our geographical and protein diversification strategy, which has historically delivered superior outcomes.”