Meat & Livestock News

JBS SA Postpones New York Stock Exchange Listing Amidst Various Challenges

JBS SA, a major player in the global meat processing industry, has decided to postpone its planned listing on the New York Stock Exchange. This announcement was made by CEO Gilberto Tomazoni during a recent call with analysts discussing the company’s third-quarter earnings, as reported by Reuters.

The delay in listing, according to Tomazoni, is primarily due to American Depositary Receipt holders desiring a vote on the proposal for JBS’ stock listing. Additionally, the U.S. Securities and Exchange Commission is currently reviewing the proposal. However, a specific timeline for when JBS might proceed with its stock listing has not been disclosed.

Complicating matters further, JBS faces opposition from over a dozen advocacy groups. These groups are challenging the company on its environmental impact, adding another layer of complexity to the stock listing process.

JBS’ decision to delay its NYSE listing comes amidst a series of recent challenges for the company. In its latest financial report, JBS revealed a significant 85.7% drop in Q3 profit compared to 2022, with its adjusted EBITDA also falling by 43.3%. In the United States, JBS USA Pork saw an 11.3% decrease in revenue, while revenue for Pilgrim’s Pride, a subsidiary of JBS, declined by 9.3%.

Adding to the company’s woes, JBS and other meat packers are currently facing two new lawsuits. One lawsuit alleges fixing prices since 2015, and the other accuses the company of fixing worker wages. These legal challenges add to the already complex situation JBS is navigating in its business operations.

The postponement of the NYSE listing and the array of challenges highlight the intricate and often turbulent nature of the global meat processing industry, where financial, legal, and environmental factors intertwine to impact major players like JBS SA.