Pilgrim’s Pride, the company controlled by JBS, reported a 16% increase in net profit in the second quarter, with net revenue of US$ 4.75 billion (up 4.3%) and Ebitda of US$ 687 million, exceeding market expectations (between US$ 630 and 640 million).
However, analysts warn that the chicken boom in the US may be peaking. Chicken spreads in the US are narrowing, suggesting that Pilgrim’s Pride’s margins may have already reached their peak. Leonardo Alencar (XP) said, “We see concerns about increasing supply and falling prices.” Gustavo Troyano (Itaú BBA) noted that the future demand for chicken in the US is the most frequent question from investors: recent data shows a decline in spreads in July, which could indicate a normalization of margins for Pilgrim’s Pride, reported TheAgriBiz.
On the stock market, Pilgrim’s shares on Nasdaq rose as much as 3% after the results but closed down 0.65%. Over the last 12 months, they have gained almost 15%, and the company is valued at US$ 11.2 billion. JBS shares also rose about 3% on the New York Stock Exchange.
