Latest news with #GuilhermeCavalcanti
Yahoo
a day ago
- Business
- Yahoo
US beef prices could be higher for next two years: JBS global CFO
Beef prices are expected to remain elevated as US cattle supply faces years-long pressure from herd rebuilding delays. Guilherme Cavalcanti, JBS (JBS) global CFO and investor relations officer, joins Market Catalysts to discuss how the company's diversified protein portfolio and global footprint are helping offset weakness in US beef. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts. Joining me now, Gilherme Cavalcanti, JBS's global chief financial officer. Guilherme, good to see you once again. Good to see you, Julie. Um, talk to me about US beef. What is going on with cattle in the US that caused this shortage, and how long do you expect it to last? Uh yes, so, basically the the herd of US in the lowest level in decades, uh, for many reasons, I think we passed through a a lot, uh, through a good moment, uh, in 2020, 2021, uh, that was followed by, uh, three years of droughts. So, the cattle rebuild herd, uh, took longer than expected. Basically, because we had again, uh, droughts in the last years. Uh, this year, uh, we have moisture, we have, uh, rain and snow, uh, so pasture conditions, uh, are good for cattle rebuild. Uh, but this in the short term, uh, already impacts. Because in order to rebuild the herd, you have to retain cow. When you retain cow, is the less cows for slaughter and then more pressure, uh, on the supply of cattle. How long? We've already seen beef prices go up here in the United States. How long do you expect those prices to be elevated? Yeah, so basically, on the cattle side, uh, as you mentioned we still expect. So if we start the cattle, uh, rebuild, uh, this year, uh, we will have the, the cycle of the cattle is two years. So we will be, uh, starting the inflection point in 2027 and seeing results in 2028. During this period, most likely, uh, beef prices will continue to be pressured because of the supply of cattle. Wow, that's a long time to have those higher, uh, beef prices. Um, luckily you guys have the chicken business as well. And that business is been performing better. Um, and when we last spoke, which was on the day that your listing, uh, your primary listing came to here in the US and this is your first earnings report since then, we should mention. You talked about that balance in the business, right, that diversification in the business. So, um, how much did chicken make up for some of the weakness in beef? Yeah, so yeah, the beef is is 30% of our business is the US beef in terms of revenues. Uh, the chicken, uh, US chicken PPC is around 25%, uh, of our, uh, global business. So, uh, the chicken going, uh, going, uh, on a on a tailwind, uh, offsets great part of the, the US beef. But also, the Brazil beef and the Australia beef is also offsetting, uh, the, the US beef. So again, our, basically, in our platform, um, basically all business units except the US beef, they are all performing well, helping to offset what one third of our business is in this challenging period. Um, since we last spoke, we have seen more tariff headlines. I know the bulk of your, uh, business, you know, is in, you do production in the countries where then you are selling into. Um, but, or is there any sort of cross border tariff exposure that you have? Yes, you, you were exactly right. So, more than 50% of our sales are in the US, which is mostly local. Uh, US exports around 15%, uh, of their revenues. Uh, and then the other regions of the world, because of this, our global footprint. And that's the idea of this geographic diversification, is that we can rearrange trade flows, uh, to offset this impact. We always have an impact, but looking globally to JBS will not be relevant, uh, because again, is rearrangement of trade flows. Basically, we can export more from Australia, we can export less from US, and then offsetting and balancing this to minimize the impact. Related Videos Tapestry stock sinks: Why Kate Spade needs to catch up to Coach Deere tariff outlook, mortgage rates hit 2025 low, Li downgrade Apple Watch blood oxygen, Klarna users, Tapestry stock plunges Investors shouldn't 'overreact' to hot PPI data, strategist says 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
Mint
30-06-2025
- Business
- Mint
Meat Giant JBS Says Investor Demand for Its Bonds Undercuts ESG Concerns
(Bloomberg) -- JBS NV's New York listing was met with fierce opposition from activist groups and politicians over the meat producer's ESG record. Many investors, however, seem willing to look the other way. A $3.5 billion bond sale earlier this week drew demand totaling five times the offering, slashing borrowing costs and providing strong evidence of investors' confidence in JBS, Chief Financial Officer Guilherme Cavalcanti said Wednesday during a conference with journalists in New York. 'The main funds were all there, eager to be allocated,' Cavalcanti said, after being asked how criticism of the company impacted investor perception. The issuance was well oversubscribed less than three hours after launch, he added, without naming any of the buyers. The deal's success suggests investors are inclined to look past activists' criticism over issues such as the past scandals involving the brothers who control JBS and the company's alleged role in deforestation, placing more emphasis on the company's ability to grow and keep its finances under control. JBS has taken steps to boost its environmental, social and governance credentials. The company has done 'transformative' work to slash cattle ranching-related deforestation in the Amazon region, Chief Executive Officer Gilberto Tomazoni said during the same conference. And it has now a 'very robust' compliance program in place, Cavalcanti said in a Bloomberg TV interview. The company said in a statement that investors have repeatedly demonstrated confidence in JBS's actions to mitigate risks in areas such as governance and the environment 'thanks to the robust programs JBS has implemented.' The bond sale was the first since the meat producer listed its shares on the New York Stock Exchange earlier this month in a move aimed at attracting a broader pool of investors and reducing capital costs. Bondholders demanded a premium of 1.25 percentage points over Treasuries for its $1.25 billion in 10-year bonds — a record low for JBS offerings with similar maturities, and comparable to the levels required from high-grade US issuers such as Energy Transfer LP and NextEra Energy Inc. Borrowers rushed to tap debt markets this week amid improved risk sentiment. Mexico, Chile and Latam Airlines Group SA are among those who came out with bond issuances this week. JBS said earnings before items such as interest and taxes have potential to grow at an annual rate of as much as 7% over the next five years as the company seeks to expand into branded, value-added food products. Sales are projected by analysts at a record $82.5 billion this year. The stock is headed for a 10% gain this week, the most among main peers. To be sure, JBS still faces scrutiny from activist groups. Earlier this month, Greenpeace International Program Director Carmen Gravatt said the organization will do its part to make sure that JBS — which relocated its corporate address to the Netherlands — operates within Dutch law. The non-profit also urged investors not to invest in the company. (Updates with company statement in sixth paragraph, and share move in 11th paragraph.) More stories like this are available on ©2025 Bloomberg L.P.
Bloomberg
26-06-2025
- Business
- Bloomberg
Meat Giant JBS Says Investor Demand for Its Bonds Undercuts ESG Concerns
JBS NV 's New York listing was met with fierce opposition from activist groups and politicians over the meat producer's ESG record. Many investors, however, seem willing to look the other way. A $3.5 billion bond sale earlier this week drew demand totaling five times the offering, slashing borrowing costs and providing strong evidence of investors' confidence in JBS, Chief Financial Officer Guilherme Cavalcanti said Wednesday during a conference with journalists in New York.
Yahoo
25-06-2025
- Business
- Yahoo
JBS moves primary listing to US: CFO explains why
Brazilian meatpacking company JBS (JBS) has moved its primary listing to the US to tap into a wider investor base and pursue index inclusion. Guilherme Cavalcanti, JBS CFO, joins Market Domination co-host Julie Hyman at the NSYE to outline the company's growth plans and its message to US investors. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Indeed, I'm here with uh, Calvacante who is the global CFO of JBS which now has its primary listing here in the United States. Thank you so much for joining us. Thank you. For people who are in the US who might not be familiar with JBS, they're certainly familiar with your products. You're one of the biggest meatpackers in the world. You own an 80% stake in Pilgrim's Pride, the poultry company, mostly poultry company here in the US. What do you hope to achieve with this primary listing, which the company has been working on for quite some time? Yeah, well, first of all, um, the the first thing that we want to achieve is to get uh, an access to a much broader investor base. So basically the the investor base that can invest uh with the SEC as our regulator is like four to five times larger, the whole emerging markets together. So first is to get access to the much broader investor base. And because again, as you mentioned, we are a big global company, we have more than 50% of our sales here in US. The second thing that we want to achieve having our primary listing here because part of that we could achieve the investor base through an ADR program, but the reason for having a primary listing here is that with that and having again a bigger presence here in US, we can also start to apply to be part of the main indexes like Russell, Crispy, Footsie and then one day S&P 500. Yes, aspirations, right? Your CEO told analysts today that you expect sales to rise at an annual pace of about 4 to 6% over the next five years. Where does that growth come from? What does that growth trajectory look like for JBS? Yeah, basically this is what's an exercise, first based on the past. So if you look at our the last 10 years, we'll grow an average of four to six percent or revenue. So it's basically to continue the trajectory. We are also investing around $1 billion per year in growth capex. So this is also part of the reason of this growth. And we are also investing the last years, we invested $3.3 billion since 2019 acquisitions. So also part of these growth will come from acquisitions as well. Well, I was going to I'm glad that you mentioned that because um, I know that you continue to look around. You also spoke to analysts today and you said nothing was on your radar in the short term. Um, why not? And where would you be looking for opportunities? What kind of opportunities are you looking for in acquisition? Okay. So first, we are looking acquisition all over the world. So mainly here in US and Europe in the prepared food segments because we want to downstream our production, get closer to the customer, more value-added brands. So that's one of our priorities. We started in the salmon business in Australia. So we can want to be relevant in salmon as we are in the other proteins. So those are also and then we start just very recently, we bought biggest South American company of eggs. So eggs is another venue of growth. So that's that's a lot of things and again as I mentioned there's nothing on the radar. Given evaluation is still high in terms of multiples and I think we have to be right to buy what I used to say, right asset for the right price. So and that's why so if has an opportunity again at the right price, then we will go for it, but now there's nothing on the radar. I'm curious since you all are so heavily in the beef business and we know there has been increased price sensitivity, at least here in the United States with inflation and really globally as well. Have you seen any demand shifts and changes as a result of those beef prices going higher? No, first, the demand even even with the higher prices, the demand for beef continues to be very strong if you look. Uh, but of course with the higher price, what we're seeing is uh, chicken sales are increasing. So I think last year was a record sales of chicken in US. So there's always this downtrend when the price of beef goes up. But I would say that the demand for all proteins are very strong. And finally, Guilherme, I want to ask you about the the company's recent history a little bit because there have been some scandals in Brazil that you all are moving past at this point. But what is your message to US investors who perhaps are familiar with the company's recent history that you are clear of those kinds of issues? Yeah, first again, this is not recently, uh, lots things happened eight, nine years ago. So I think this is history. Uh, since then, we start a very robust compliance program all over the world, training, so just to make sure that anything like that or that like that will never happen again.
Yahoo
25-06-2025
- Business
- Yahoo
JBS moves primary listing to US: CFO explains why
Brazilian meatpacking company JBS (JBS) has moved its primary listing to the US to tap into a wider investor base and pursue index inclusion. Guilherme Cavalcanti, JBS CFO, joins Market Domination co-host Julie Hyman at the NSYE to outline the company's growth plans and its message to US investors. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Sign in to access your portfolio
