Thursday, March 31, 2011

JBS Company Profile

by Stine Olsen Berntsen


JBS is a Brazilian company founded in 1953, and is today one of the largest companies in the food processing sector. The company's brand portfolio includes Friboi, Sola, Swift, Maturatta, Tama and Anglo, among others.  Currently the company is operating in all continents and has more than 120 000 employees. The market capitalization of the company is estimated to approximately R$ 16,040 million, and in the fiscal year ending 2009 total revenues amounted to R$ 55 224 million and EBITDA R$ 3058 million. Last quoted share price is R$ 6,25.

The main shareholders of the company are the following:
  • FB Participações S.A (54,52%) – The Batista (founding) family
  • Minority Stockholders (17,55%)
  • BNDES Participações S.A. – Brazilian development bank (17,02%)
  • PROT – FIP (8%)
  • Shares in Treasury (2,91%) 

Over the last decade the company pursued an external growth strategy after which they have bought up and acquired numerous other companies, and diversified into new business segments. The company merged horizontally with other beef producers and exporters to gain access to the American and Australian market, and increased production capacity substantially. The acquisition of Pilgrim’s Pride marked the company’s diversification into the poultry market. While the acquisition of Bertin Ltda added up to the continuing diversification efforts by taking over divisions such as leather, products for domestic animals, milk and dairy products, recycling, biodiesel fuels, petrochemical products, personal hygiene and beauty products, collagen, and canning, among others. The capital sources used to finance this acquisition spree has mainly been debt, which has led to a very high leverage where long term debt to equity amounts to 93%.

JBS is organized along the following business units:
  • Mercosul beef à conduct domestic and international beef processing in Brazil, Argentina, Uruguay and Paraguay, as well as dairy, leather, pet, biodiesel, collagen, hygiene and cleaning products.
  • USA/Australia beef à conduct international beef processing in the United States and Australia, as well as Australian lamb and sheep businesses.
  • USA porkà conduct international pork and lamb processing in the United States
  • USA Chickenà conduct international chicken processing in the United States and Mexico.
  • Europe beef à conduct international beef processing in Europe.

 Sources:
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