Jbs NV (JBS.N): PPC 2Q26 Read Across: Weak Commodity Pricing Continued to Weigh on Results

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Jbs NV (JBS.N): PPC 2Q26 Read Across: Weak Commodity Pricing Continued to Weigh on Results

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30 Jul 2026 07:00:52 ET │ 11 pages

Jbs NV (JBS.N)

PPC 2Q26 Read Across: Weak Commodity Pricing Continued to Weigh

on Results

CITI'S TAKE Buy

Price (29 Jul 26 16:00) US$14.23 PPC (JBS listed subsidiary; not rated) reported 2Q26 with adjusted

Target price US$20.00 EBITDA falling 48%YoY to US$360mn (3% below consensus) as industry

oversupply continued to pressure commodity chicken pricing. The key Expected share price return 40.5%

miss was gross margin, which contracted 770bpsYoY to 7.3%, reflecting a Expected dividend yield 6.7%

sharp decline in U.S. commodity chicken prices, particularly jumbo cuts, Expected total return 47.2%

and continued weakness in Mexico. While execution improved Market Cap US$15,782M

sequentially through higher productivity, completed plant upgrades and

stronger Prepared Foods performance, these positives were insufficient to

offset unfavorable market fundamentals. Overall, we view the read across

for JBS as modestly negative, reinforcing that a more meaningful recovery Renata CabralAC

in poultry earnings will likely depend on tighter industry supply rather than +55-11-4009-7561

further operational improvements. renata.cabral@citi.com

Gross Margin Drove the Miss. Net sales declined 3%YoY to US$4.63bn, 2% below

consensus, while COGS increased 6%YoY, driving gross profit down 53%YoY and

gross margin to 7.3%, 140bps below expectations. The deterioration was driven

primarily by weaker U.S. commodity chicken pricing, particularly a more than 25%YoY

decline in jumbo cutout values, as industry supply continued to outpace demand.

Mexico also remained under pressure, with higher domestic chicken production,