Latest news with #GilbertoTomazoni
Fast Company
23-05-2025
- Business
- Fast Company
Brazilian meat giant JBS gets closer to listing on the NYSE—despite ‘history of corruption'
Brazilian meat giant JBS came a step closer Friday to its long-held goal of trading its shares on the New York Stock Exchange. The company's minority shareholders voted to approve the company's plan to list its shares both in Sao Paulo and New York, casting aside opposition from environmental groups, U.S. lawmakers and others who noted JBS' record of corruption, monopolistic behavior and environmental destruction. JBS Global CEO Gilberto Tomazoni said the outcome showed shareholders were confident in the benefits a dual listing would bring. The company said before the vote that listing shares in the U.S. would boost its global profile and attract new investors. JBS said it expected to begin trading on the New York Stock Exchange on June 12. The U.S. Securities and Exchange Commission granted the company's request to list its shares in New York late last month. JBS is one of the world's largest food companies, with more than 250 production facilities in 17 countries. Half of its annual revenue comes from the U.S., where it has more than 72,000 employees. It's America's top beef producer and it's second-largest producer of poultry and pork. JBS's plan—which has been in the works for years—has generated significant pushback. Last fall, 20 environmental organizations—including Mighty Earth, Greenpeace and Rainforest Action Network—signed an open letter to JBS investors opposing the listing, saying it would put the climate at greater risk. Glass Lewis, an influential independent investor advisory firm, was also among those recommending that shareholders reject the plan. In its report, Glass Lewis said the recent return of brothers Joesley and Wesley Batista to the JBS board should concern investors. The brothers, who are the sons of JBS' founder, were briefly jailed in Brazil in 2017 on bribery and corruption charges. 'In our view, the involvement of the company and of Joesley and Wesley Batista in multiple high-profile scandals has tarnished the company's reputation, undermining stakeholder trust and posing a significant risk to its competitive position,' Glass Lewis said. Glass Lewis also objected to the company's plan for dual share classes, which would give the Batistas and other controlling shareholders more voting power. In its response to Glass Lewis' report, JBS said it has established more stringent controls and anti-corruption training at the company in recent years. It also said a U.S. listing would ensure more oversight from U.S. authorities. 'We believe this transaction will increase our visibility in global markets, attract new investors and further strengthen our position as a global food industry leader,' Tomazoni said in a statement last month when the company announced Friday's vote. Many U.S. lawmakers also aren't convinced JBS belongs on the New York Stock Exchange. In a letter sent last week to JBS, U.S. Sen. Elizabeth Warren, a Massachusetts Democrat, noted that Pilgrim's Pride —a U.S. company owned by JBS—was the largest single donor to President Donald Trump's inaugural committee, with a $5 million gift. The SEC's approval came just weeks after that donation, Warren said. 'I am concerned Pilgrim's Pride may have made its contribution to the inaugural fund to curry favor with the Trump administration,' Warren wrote in the letter, which asked the company why the donation was made. In a statement, JBS said it has a 'long bipartisan history of participating in the civic process.' Warren was also among a bipartisan group of 15 U.S. senators who sent a letter to the SEC in January 2024 urging the agency to reject a U.S. listing for JBS. The senators, a diverse group that rarely agrees on policy, included Republicans Marco Rubio of Florida and Josh Hawley of Missouri, Democrat Cory Booker of New Jersey and Independent Bernie Sanders of Vermont. The letter noted that in 2020, J&F Investments, a controlling shareholder of JBS that is owned by the Batista family, pleaded guilty to bribery charges in U.S. federal court and agreed to pay fines of $256 million. It also said Pilgrim's Pride pleaded guilty to price-fixing charges in 2021. And it said U.S. Senate investigations found that JBS is 'turning a blind eye' to rainforest destruction in the Amazon by its suppliers. 'Approval of JBS' proposed listing would subject U.S. investors to risk from a company with a history of blatant, systemic corruption, and further entrench its monopoly power and embolden its monopoly practices,' the letter said.
Globe and Mail
23-05-2025
- Business
- Globe and Mail
JBS shareholders approve US stock listing despite pushback from environmental groups and others
Brazilian meat giant JBS came a step closer Friday to its long-held goal of trading its shares on the New York Stock Exchange. The company's minority shareholders voted to approve the company's plan to list its shares both in Sao Paulo and New York, casting aside opposition from environmental groups, U.S. lawmakers and others who noted JBS' record of corruption, monopolistic behavior and environmental destruction. JBS Global CEO Gilberto Tomazoni said the outcome showed shareholders were confident in the benefits a dual listing would bring. The company said before the vote that listing shares in the U.S. would boost its global profile and attract new investors. JBS said it expected to begin trading on the New York Stock Exchange on June 12. The U.S. Securities and Exchange Commission granted the company's request to list its shares in New York late last month. JBS is one of the world's largest food companies, with more than 250 production facilities in 17 countries. Half of its annual revenue comes from the U.S., where it has more than 72,000 employees. It's America's top beef producer and it's second-largest producer of poultry and pork. JBS's plan — which has been in the works for years — has generated significant pushback. Last fall, 20 environmental organizations — including Mighty Earth, Greenpeace and Rainforest Action Network — signed an open letter to JBS investors opposing the listing, saying it would put the climate at greater risk. Glass Lewis, an influential independent investor advisory firm, was also among those recommending that shareholders reject the plan. In its report, Glass Lewis said the recent return of brothers Joesley and Wesley Batista to the JBS board should concern investors. The brothers, who are the sons of JBS' founder, were briefly jailed in Brazil in 2017 on bribery and corruption charges. 'In our view, the involvement of the company and of Joesley and Wesley Batista in multiple high-profile scandals has tarnished the company's reputation, undermining stakeholder trust and posing a significant risk to its competitive position,' Glass Lewis said. Glass Lewis also objected to the company's plan for dual share classes, which would give the Batistas and other controlling shareholders more voting power. In its response to Glass Lewis' report, JBS said it has established more stringent controls and anti-corruption training at the company in recent years. It also said a U.S. listing would ensure more oversight from U.S. authorities. 'We believe this transaction will increase our visibility in global markets, attract new investors and further strengthen our position as a global food industry leader,' Tomazoni said in a statement last month when the company announced Friday's vote. Many U.S. lawmakers also aren't convinced JBS belongs on the New York Stock Exchange. In a letter sent last week to JBS, U.S. Sen. Elizabeth Warren, a Massachusetts Democrat, noted that Pilgrim's Pride — a U.S. company owned by JBS — was the largest single donor to President Donald Trump's inaugural committee, with a $5 million gift. The SEC's approval came just weeks after that donation, Warren said. 'I am concerned Pilgrim's Pride may have made its contribution to the inaugural fund to curry favor with the Trump administration,' Warren wrote in the letter, which asked the company why the donation was made. In a statement, JBS said it has a 'long bipartisan history of participating in the civic process.' Warren was also among a bipartisan group of 15 U.S. senators who sent a letter to the SEC in January 2024 urging the agency to reject a U.S. listing for JBS. The senators, a diverse group that rarely agrees on policy, included Republicans Marco Rubio of Florida and Josh Hawley of Missouri, Democrat Cory Booker of New Jersey and Independent Bernie Sanders of Vermont. The letter noted that in 2020, J&F Investments, a controlling shareholder of JBS that is owned by the Batista family, pleaded guilty to bribery charges in U.S. federal court and agreed to pay fines of $256 million. It also said Pilgrim's Pride pleaded guilty to price-fixing charges in 2021. And it said U.S. Senate investigations found that JBS is 'turning a blind eye' to rainforest destruction in the Amazon by its suppliers. 'Approval of JBS' proposed listing would subject U.S. investors to risk from a company with a history of blatant, systemic corruption, and further entrench its monopoly power and embolden its monopoly practices,' the letter said.
Yahoo
15-05-2025
- Business
- Yahoo
Weight-Loss Drugs Providing a Boost to US Meat Demand, JBS Says
(Bloomberg) -- JBS SA said demand for meat is benefiting from an unlikely source: weight-loss drugs. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Maryland's Credit Rating Gets Downgraded as Governor Blames Trump Power-Hungry Data Centers Are Warming Homes in the Nordics NYC Commuters Brace for Chaos as NJ Transit Strike Looms People on GLP-1 medication seem to be adding more protein to their diets, further increasing demand for chicken and beef at a time when supplies are tight, Gilberto Tomazoni, chief executive officer of the world's largest meat supplier, said at the BMO Farm to Market conference in New York. The so-called Ozempic Revolution has wiped billions off the market value of food and drink companies as consumers under appetite-suppressing drugs cut down on grocery expenses. Still, some segments of the industry stand to gain. Danone SA said it was seeing a jump in demand for its high-protein, low calorie yogurts in the US as a result of the obesity-treatment craze. Tomazoni said consumers using GLP-1 drugs are likely increasing their protein intakes in order not to lose muscle mass. Meat companies including JBS have seen profits jump amid strong demand for chicken. Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Why Obesity Drugs Are Getting Cheaper — and Also More Expensive Tariffs Won't Reindustrialize America. Here's What Will ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
15-05-2025
- Business
- Bloomberg
Weight-Loss Drugs Providing a Boost to US Meat Demand, JBS Says
By and Erin Ailworth Save JBS SA said demand for meat is benefiting from an unlikely source: weight-loss drugs. People on GLP-1 medication seem to be adding more protein to their diets, further increasing demand for chicken and beef at a time when supplies are tight, Gilberto Tomazoni, chief executive officer of the world's largest meat supplier, said at the BMO Farm to Market conference in New York.
Mint
13-05-2025
- Business
- Mint
JBS Profits Jump as Chicken More Than Offsets Beef Downturn
(Bloomberg) -- JBS SA said quarterly profits rose more than expected, with chicken making up for the bulk of the increase as the world's largest meat supplier faces deepening losses at its US beef business. Adjusted net income for the three months ended in March rose 78% from a year earlier to 2.92 billion reais ($520.7 million), the Brazilian company said in a statement. That compares with the 2.79 billion real average of analyst estimates compiled by Bloomberg. The result underscores how chicken has become a lifeline for major meat suppliers including Tyson Foods Inc. and Cargill Inc. as a severe shortage of cattle in the US inflates their costs and wipes out profits from beef processing. Roughly 71% of JBS's earnings before items such as interest and taxes in the first quarter came from its chicken operations in North America and Brazil, which benefited from cheaper feed costs and strong consumer demand. That compares with 57% a year earlier. The boom in chicken won't be fading anytime soon, according to JBS Chief Executive Officer Gilberto Tomazoni. 'We've seen a very strong demand, I see a very positive year for chicken and pork,' he said in an interview Tuesday, also citing supply constraints. JBS said its North American beef business, the company's largest, had a loss of $112.9 million in the first quarter as surging prices for the meat it sells were more than offset by record cattle costs. Still, profits for JBS's beef operations in Brazil and Australia rose from a year earlier. The company, which is based in Sao Paulo, is in the final stages of a longstanding plan to trade its shares in New York after receiving a green light by US regulators last month. The meat producer will go to minority shareholders for a vote on May 23. JBS says the move will broaden its access to capital and give it more flexibility to use equity as a source of funding. JBS shares have soared 85% over the past year to record levels in April. JBS's free cash flow was negative 5.4 billion reais in the first quarter, from negative 3.1 billion reais a year ago, due mainly to higher tax payments. (Updates with CEO quote in fifth paragraph.) More stories like this are available on
