Top Meat Producer JBS Sinks as Loss Shows Diversification Still Has Risks
- Analyst sees ‘perfect storm’ keeping investors on sidelines
- CEO says this is the first time all units are facing adversity
Cattle at a JBS SA facility in Tucuma, Para state, Brazil.
Photographer: Jonne Roriz/BloombergThis article is for subscribers only.
JBS SA, the world’s largest meat producer, plunged the most in three years as an unexpected loss in the first quarter showed that its strategy of producing different proteins in several geographies doesn’t make it immune to risk.
“This is the first time in 12 years we face adverse conditions in all the countries we operate,” Chief Executive Officer Gilberto Tomazoni said during an earnings call. That means JBS earnings have showed stability in the long term, supporting the company’s diversification strategy, he said.