JBS Investor Day Takeaways

研报英文原文证据摘录

JBS Investor Day Takeaways

organic growth

projects remain underway across its portfolio including in the US (PPC value-added chicken capacity

expansion), Brazil (Seara fresh and value-added pork and chicken capacity expansions), Australia (Huon

salmon capacity expansion), and Oman (greenfield chicken, lamb and beef plant). JBS’s combined growth

investments could contribute +M-HSD% annual profit growth over the next several years. Fifth, JBS is

working to position itself for greater US stock fund and index inclusion.

Key takeaways from JBS’s Investor Day include the following:

• Operational improvements and eventual restart of Mexico feeder cattle supply creates

pathway for NA Beef segment to return to profitability without herd rebuilding. JBS does

not need the cattle herd to return to prior absolute levels because productivity has structurally

improved — each head now produces ~50% more beef than in the 1970s (peak US herd) given

higher weights. The near-term variable that matters most is reopening feeder cattle imports from

Mexico, which management equated to 2–3 years of herd rebuilding. Interestingly, with plant

closures announced by TSN and now JBS, re-opening to Mexico cattle imports would almost return

industry capacity utilization to typical levels even without herd rebuilding. First, JBS outlined a

plan to improve its North America Beef margin gap to the industry by 300bps by 2027 driven

entirely by operational improvements (from 60bps below peers in 2025 to 250bps above peers in

2027). This could drive a $500+mm improvement in EBITDA. Second, JBS announced the closure

of its Souderton, PA beef packing plant (~2% of total US slaughter capacity), while maintaining

plans for a $150mm investment in its much larger (and more favorably located) Cactus, TX plant