Despite the challenging global geopolitical and trading environment which put pressure on some of its business units, global protein giant JBS delivered solid financial results in its second quarter ended 31 June announced overnight.

Net revenue across the company’s diverse operations in North and South America and Australia grew 9pc to a new record, just short of US$21 billion, and net income was 61pc higher compared to the same period last year, at US$528 million.

Performance in JBS’s Australian division (covering beef, lamb, pork, value-added and aquaculture operations) benefited from a favourable livestock cycle, shareholders were told. Net revenue in Australia for the quarter was US$1.972b, up 19.4pc on the same period last year. Adjusted pre-tax earnings were $250m, up 24pc on last year.

The solid growth in JBS’s Australian division net revenue was driven by increased sales volume in both the domestic and export markets. The Australian business maintained a high EBITDA margin, reflecting operational efficiency gains, cost reduction initiatives and higher processed volumes driven by increased slaughter animal availability.

JBS’s Primo Australian prepared food unit reported a slight increase in net revenue in the quarter compared to 2Q24. The 8pc growth in sales volume compared to the same period last year was offset by lower prices, as consumer demand continues to be pressured by inflation.

Overall profitability for the global JBS business reflected the still-challenging US beef cycle and the global geopolitical environment, which primarily impacted the results of JBS North America Beef and JBS US Pork divisions, JBS told shareholders.

In contrast, the JBS North American beef business produced net revenue of US$6.8b in the second quarter, a surprisingly strong 14pc increase compared to 2Q24, and a negative adjusted EBITDA of US$264.4m. Revenue growth in the US business was driven by strong domestic demand, even with beef cutout prices at record highs.

“The US industry is facing possibly the worst moment of its cycle, with low availability of animals for slaughter,” shareholders were told.

In addition to the current livestock cycle, the US temporarily suspended imports of Mexican cattle during the quarter due to animal health concerns. With cattle supplies at restricted levels, live cattle prices also remained at historically high levels, and therefore cattle prices had outpaced wholesale price growth.

The US industry also faced additional challenges related to accessing international markets, reflecting changes in the North American regulatory landscape. Principal among these were the access issues for US beef into China, with hundreds of beef plants still awaiting renewed China access.

In June, JBS completed its dual public listing process, joining the bourse on the New York Stock Exchange.

Global chief executive Gilberto Tomazani said the company’s US listing set a clear path to long-term value creation, anchored in operational excellence, diversification, innovation, value-added products, and strong brands.

“In the coming years, we will continue to invest consistently in expanding our platform and preparing the company to meet future global demand for protein,” he told shareholders.

The company outlined a series of strategic investments in its US businesses in the first half of the year, including $200 million for upgrades at its beef plants in Cactus (Texas) and Greeley (Colorado), and $400 million for a new prepared foods facility in Georgia; a new fresh facility in Iowa, totaling $135m and a further $100m investment to acquire and expand a facility in Iowa, which will be transformed into the largest ready-to-eat sausage and bacon plant in the company’s US operations.

“Even amid a challenging macroeconomic environment and ongoing pressures in some of our business units, our second quarter performance once again reflected the resilience of our diversified global platform,” global chief executive Gilberto Tomazoni told shareholders.

Results also reflected continued growth in the company’s prepared foods portfolio, stronger relationships with key customers, and solid performance across the fresh and case-ready segments.

“In the US, our beef business continued to face pressure from an unfavourable cattle cycle, as the spread between livestock costs and beef prices narrowed,” Mr Tomazoni said.

“Diversification remains one of our greatest strengths. The Brazil beef business delivered solid results, driven by new export approvals and productivity gains. In Australia, we continue to benefit from a favorable livestock cycle, with export growth and operational improvements contributing to another quarter of consistent performance,” he said.

“With a stronger, more balanced and more innovative global platform, JBS is well prepared for the next phase of global opportunities. We remain confident in our team and ability to create long-term value,” Mr Tomazoni said.