Annual and Sustainability Report | 2019
Headquarters in São Paulo (SP)

and perspectives

Business unit results


In 2019, Seara had net revenues of R$ 20.4 billion, rising 15.2% compared to 2018. The Company’s EBITDA during the year was R$ 2.3 billion, with a margin of 11.1%.

There is a growing preference for Seara among Brazilian consumers (99% Brand Knowledge), based on the quality of its products and its innovation. Throughout 2019, over 180 products were launched, notably in the Seara Nature (products made with natural ingredients and no artificial preservatives), Seara Rotisserie (offering convenience and products with clean label ingredients), and Incredible Seara (providing a range of 100% plant-based products), not to mention expansion of the Seara Gourmet range, with products focused on indulgent moments.

JBS Brasil

In 2019, JBS Brasil had revenues of R$ 32.0 billion, up by 15.9% year-over-year. EBITDA was at R$ 1.7 billion, representing a 39.1% increase over 2018.

JBS has invested in expanding partnerships with key customers through initiatives such as Top Grade Butcher and 1953 Friboi Gourmet Butchers, as well as with its mix of higher added-value products, such as the launch of the 1953 Friboi Hamburger and Steak Maturatta products and the Friboi Beef Skewers range, aimed at offering more convenience to consumers, delivering quality products in a ready-to-make format..


JBS USA Beef had net revenue of R$ 87.2 billion¹ in 2019, which is 10.9% more than in 2018, and EBITDA of R$ 8.0 billion, 27% higher year-over-year, with a margin of 9.2%. These results include the impact of depreciation in the average exchange rate (BRL vs USD) of 7.4%, which went from R$ 3.65 in 2018 t o R$ 3.95 in 2019.

The industry fundamentals in North America remain solid, supported by an ample supply of cattle in the US market as well as by favorable economic conditions, which have sustained demand for beef in the domestic and export markets. In addition, one highlight at JBS USA Beef was enhancement of the product mix, as a result of innovation in value added programs, such as Aspen Ridge Natural Beef, Grass Run Farms, Imperial Wagyu and Adaptable brand products.

In line with a strategy to expand value-added product offerings, JBS USA recently announced the acquisition of the Empire Packing Company, with case-ready production units in the United States, and the Ledbetter brand. Within the diversification strategy and to meet new consumer trends, the Company recently launched the OZO brand of plant-based protein products, adding to its portfolio of innovative and high-quality products.

In Australia, the highlight was performance of beef and lamb exports directly to China, which were 80% higher in 2019. Primo Foods, a leader in the prepared foods market in Australia and New Zealand, continued to drive consumer behavior through innovations during the year, such as: the “Stackers” line of appetizers and the “Balanced Blend” line of sausages, with a mix of animal and plant-based proteins..

¹Considering the results in IFRS and Brazilian reais.


JBS USA Pork had net revenue of R$ 23.5 billion² in 2019, 13% higher than in 2018, and EBITDA of R$ 2.6 billion, with a margin of 11.1% compared to 9.6% in 2018, considering the impact of a 7.4% depreciation in the average exchange rate (BRL vs USD), which went from R$ 3.65 in 2018 to R$ 3.95 in 2019.

In 2019, pork export volume in the United States grew by 10% in relation to 2018, highlighting the demand from China, which saw a substantial rise in the second half of the year. Larger export volumes, along with favorable economic conditions in the domestic market, sustained growth in demand for pork products.

JBS USA Pork remains focused on operational performance, with cost controls at production units and an outstanding capacity to convert primary products into products with greater added-value, contributing to better margins. Added to this context is the expansion of the case-ready business in the United States, with the acquisition of the Empire Packing Company.

Plumrose has continued to increase its presence in the prepared foods segment, by scaling up and developing innovative and branded products. In 2019, net revenue for the business was up by 10%. In line with a strategic plan to increase production capacity, especially in bacon, Plumrose opened a new production line in Ottumwa – Iowa in April 2020. The business unit will also begin construction on a new production plant for readyto- eat products in 2020, in the state of Missouri, in the United States

² Considering the results in IFRS and Brazilian reais.

Pilgrim’s Pride Corporation

Pilgrim’s Pride saw net revenue of R$ 45.0³ billion in 2019, up 12.9% compared to 2018, while EBITDA was at R$ 5.3 billion, with a margin of 11.8%. This result includes the impact of depreciation in the average exchange rate (BRL vs USD) of 7.4%, which went from R$ 3.65 in 2018 to R$ 3.95 in 2019.

In the United States, operational performance continued to move upward, driven by partnerships with key customers and by a focus on operational excellence. Strong market demand in the case-ready and small birds businesses continued to outpace supply. The commodities sector continues to pose challenges, despite improvement in market conditions compared to 2018. The prepared products operation in the USA continued to grow, as a result of investments made in recent years.

In Europe, results continue to be driven by greater operational efficiency, investments in automation, higher yields and mitigation of the costs of inputs. Integration of recently acquired operations in Europe is still moving forward and has already generated a positive EBITDA. Better results were driven by strong pork exports and good domestic demand, in addition to implementing operational improvements and capturing synergies.

In Mexico, more challenging conditions in the macroeconomic scenario over the last quarter of the year impacted consumer spending, affecting demand in traditional markets. Despite the market environment, operations saw good operating performance in relation to the sector and were able to generate an even better year-over-year result.

³Considering the results in IFRS and Brazilian reais.

the report