JBS held a conference for investors on the company’s outlook for this year, focusing especially on the increase in planned investments. It indicated it intends to allocate about US$1 billion for expansion and the same amount for maintenance, totaling US$2 billion. This figure surprised the market, which had been working with a lower estimate and began to fear that the strategy could affect cash flow and dividend distribution.
With a total planned investment of US$3.1 billion when also considering biological assets and leases, Bradesco BBI analysts believe JBS will continue to prioritize the distribution of cash, maintaining a balance between growth and shareholder returns.
One reason for this more positive outlook from the bank is that JBS’s appetite for mergers and acquisitions has waned. The company took part in the bidding process to acquire Oscar Mayer, which could have cost around US$3 billion, but it did not move forward with the purchase. With no major acquisition moves in the short term, according to BBI, JBS is likely to focus its resources on organic expansion. Analysts say this approach could even lead to a lower-than-expected capital allocation if the company adjusts its growth rate over the course of the year, Infomoney reported.
Another relevant factor for the market is the possible listing of JBS shares in the United States, a project investors have anticipated for years. In the conference, the company stated that this process could conclude soon, potentially creating new opportunities for share appreciation.
