The following is a summary of the JBS SA (JBSAY) Q4 2023 Earnings Call Transcript:
Financial Performance:
JBS SA reported Q4 net revenue of $19.4 billion, adjusted EBITDA of $1 billion and a net profit of $16.7 million.
Despite a net loss of $200 million for the year, annual net revenues were $73 billion and annual adjusted EBITDA was $3.5 billion.
The company generated $875 million in free cash flow for Q4 and reduced its gross debt by $1.6 billion between Q3 and Q4.
The leverage ratio fell from 4.87x in Q3 to 4.42x in Q4, with continued reduction planned in 2024.
Business Progress:
JBS SA expects continued margin recovery in 2024, due to improved operational excellence and strategic initiatives.
Expansion strategies include the completion of a cultivated protein facility in Spain and an R&D biotechnology centre in Brazil.
JBS SA also opened two new factories in Brazil in 2023, with a focus on diversifying their geographic platform and protein style, and investing in value-added products and strategic partnerships.
They aim to manage cash generation similarly to previous years, aiming for reduced cash burn in Q1 2024 and an estimated free cash flow break-even point at an EBITDA of $3.5 billion.
There are plans for an overall positive year-end result, with the US chicken business and pork showing positive results, while improvements are expected for the underperforming US beef business.
The company plans to continue reducing its gross debt for 2024, aiming for a leverage ratio below 3.25x by the end of the year, and expects further decreases in the next few years.
More details: JBS SA SPON ADR EACH REP 2 ORD SHS IR
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