Latest news with #GuilhermeCavalcanti
Mint
30-06-2025
- Business
- Mint
Meat Giant JBS Says Investor Demand for Its Bonds Undercuts ESG Concerns
(Bloomberg) -- JBS NV's New York listing was met with fierce opposition from activist groups and politicians over the meat producer's ESG record. Many investors, however, seem willing to look the other way. A $3.5 billion bond sale earlier this week drew demand totaling five times the offering, slashing borrowing costs and providing strong evidence of investors' confidence in JBS, Chief Financial Officer Guilherme Cavalcanti said Wednesday during a conference with journalists in New York. 'The main funds were all there, eager to be allocated,' Cavalcanti said, after being asked how criticism of the company impacted investor perception. The issuance was well oversubscribed less than three hours after launch, he added, without naming any of the buyers. The deal's success suggests investors are inclined to look past activists' criticism over issues such as the past scandals involving the brothers who control JBS and the company's alleged role in deforestation, placing more emphasis on the company's ability to grow and keep its finances under control. JBS has taken steps to boost its environmental, social and governance credentials. The company has done 'transformative' work to slash cattle ranching-related deforestation in the Amazon region, Chief Executive Officer Gilberto Tomazoni said during the same conference. And it has now a 'very robust' compliance program in place, Cavalcanti said in a Bloomberg TV interview. The company said in a statement that investors have repeatedly demonstrated confidence in JBS's actions to mitigate risks in areas such as governance and the environment 'thanks to the robust programs JBS has implemented.' The bond sale was the first since the meat producer listed its shares on the New York Stock Exchange earlier this month in a move aimed at attracting a broader pool of investors and reducing capital costs. Bondholders demanded a premium of 1.25 percentage points over Treasuries for its $1.25 billion in 10-year bonds — a record low for JBS offerings with similar maturities, and comparable to the levels required from high-grade US issuers such as Energy Transfer LP and NextEra Energy Inc. Borrowers rushed to tap debt markets this week amid improved risk sentiment. Mexico, Chile and Latam Airlines Group SA are among those who came out with bond issuances this week. JBS said earnings before items such as interest and taxes have potential to grow at an annual rate of as much as 7% over the next five years as the company seeks to expand into branded, value-added food products. Sales are projected by analysts at a record $82.5 billion this year. The stock is headed for a 10% gain this week, the most among main peers. To be sure, JBS still faces scrutiny from activist groups. Earlier this month, Greenpeace International Program Director Carmen Gravatt said the organization will do its part to make sure that JBS — which relocated its corporate address to the Netherlands — operates within Dutch law. The non-profit also urged investors not to invest in the company. (Updates with company statement in sixth paragraph, and share move in 11th paragraph.) More stories like this are available on ©2025 Bloomberg L.P.
Bloomberg
26-06-2025
- Business
- Bloomberg
Meat Giant JBS Says Investor Demand for Its Bonds Undercuts ESG Concerns
JBS NV 's New York listing was met with fierce opposition from activist groups and politicians over the meat producer's ESG record. Many investors, however, seem willing to look the other way. A $3.5 billion bond sale earlier this week drew demand totaling five times the offering, slashing borrowing costs and providing strong evidence of investors' confidence in JBS, Chief Financial Officer Guilherme Cavalcanti said Wednesday during a conference with journalists in New York.
Yahoo
25-06-2025
- Business
- Yahoo
JBS moves primary listing to US: CFO explains why
Brazilian meatpacking company JBS (JBS) has moved its primary listing to the US to tap into a wider investor base and pursue index inclusion. Guilherme Cavalcanti, JBS CFO, joins Market Domination co-host Julie Hyman at the NSYE to outline the company's growth plans and its message to US investors. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Indeed, I'm here with uh, Calvacante who is the global CFO of JBS which now has its primary listing here in the United States. Thank you so much for joining us. Thank you. For people who are in the US who might not be familiar with JBS, they're certainly familiar with your products. You're one of the biggest meatpackers in the world. You own an 80% stake in Pilgrim's Pride, the poultry company, mostly poultry company here in the US. What do you hope to achieve with this primary listing, which the company has been working on for quite some time? Yeah, well, first of all, um, the the first thing that we want to achieve is to get uh, an access to a much broader investor base. So basically the the investor base that can invest uh with the SEC as our regulator is like four to five times larger, the whole emerging markets together. So first is to get access to the much broader investor base. And because again, as you mentioned, we are a big global company, we have more than 50% of our sales here in US. The second thing that we want to achieve having our primary listing here because part of that we could achieve the investor base through an ADR program, but the reason for having a primary listing here is that with that and having again a bigger presence here in US, we can also start to apply to be part of the main indexes like Russell, Crispy, Footsie and then one day S&P 500. Yes, aspirations, right? Your CEO told analysts today that you expect sales to rise at an annual pace of about 4 to 6% over the next five years. Where does that growth come from? What does that growth trajectory look like for JBS? Yeah, basically this is what's an exercise, first based on the past. So if you look at our the last 10 years, we'll grow an average of four to six percent or revenue. So it's basically to continue the trajectory. We are also investing around $1 billion per year in growth capex. So this is also part of the reason of this growth. And we are also investing the last years, we invested $3.3 billion since 2019 acquisitions. So also part of these growth will come from acquisitions as well. Well, I was going to I'm glad that you mentioned that because um, I know that you continue to look around. You also spoke to analysts today and you said nothing was on your radar in the short term. Um, why not? And where would you be looking for opportunities? What kind of opportunities are you looking for in acquisition? Okay. So first, we are looking acquisition all over the world. So mainly here in US and Europe in the prepared food segments because we want to downstream our production, get closer to the customer, more value-added brands. So that's one of our priorities. We started in the salmon business in Australia. So we can want to be relevant in salmon as we are in the other proteins. So those are also and then we start just very recently, we bought biggest South American company of eggs. So eggs is another venue of growth. So that's that's a lot of things and again as I mentioned there's nothing on the radar. Given evaluation is still high in terms of multiples and I think we have to be right to buy what I used to say, right asset for the right price. So and that's why so if has an opportunity again at the right price, then we will go for it, but now there's nothing on the radar. I'm curious since you all are so heavily in the beef business and we know there has been increased price sensitivity, at least here in the United States with inflation and really globally as well. Have you seen any demand shifts and changes as a result of those beef prices going higher? No, first, the demand even even with the higher prices, the demand for beef continues to be very strong if you look. Uh, but of course with the higher price, what we're seeing is uh, chicken sales are increasing. So I think last year was a record sales of chicken in US. So there's always this downtrend when the price of beef goes up. But I would say that the demand for all proteins are very strong. And finally, Guilherme, I want to ask you about the the company's recent history a little bit because there have been some scandals in Brazil that you all are moving past at this point. But what is your message to US investors who perhaps are familiar with the company's recent history that you are clear of those kinds of issues? Yeah, first again, this is not recently, uh, lots things happened eight, nine years ago. So I think this is history. Uh, since then, we start a very robust compliance program all over the world, training, so just to make sure that anything like that or that like that will never happen again.
Yahoo
25-06-2025
- Business
- Yahoo
JBS moves primary listing to US: CFO explains why
Brazilian meatpacking company JBS (JBS) has moved its primary listing to the US to tap into a wider investor base and pursue index inclusion. Guilherme Cavalcanti, JBS CFO, joins Market Domination co-host Julie Hyman at the NSYE to outline the company's growth plans and its message to US investors. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Sign in to access your portfolio
Yahoo
13-06-2025
- Business
- Yahoo
The World's Largest Meatpacker Is Finally Set for Its NYSE Debut
The world's biggest meat company is set to debut on the New York Stock Exchange, riding strong earnings and American consumers' fixation on protein. Ordinarily, such a deal would draw a crowd of banks, a big roadshow and a traditional listing-day bell-ringing ceremony. JBS is going a different route, simply making its shares available to trade and letting the market take it from there. The Case for Rate Cuts Is Growing Inside ABC News's Decision to Oust a Longtime Correspondent Boeing Crash in India Is First Fatal Incident Involving a 787 Jet Chime Financial Is the Latest IPO to Soar in Debut Aerospace Startup JetZero to Start Building Futuristic Planes in North Carolina The São Paulo-based company on Friday will directly list its shares on the Big Board, aiming to cement its image as an American meat conglomerate. JBS last week delisted its shares from Brazil's São Paulo Stock Exchange, where they had traded for almost two decades. 'This step will mark a new chapter in the company's journey,' JBS Chief Executive Gilberto Tomazoni said last month. The $15 billion Brazilian meatpacking conglomerate brings to U.S. markets a sprawling global operation—and some baggage. A corruption case in Brazil ensnared two of its founding family members, who did jail time related to the affair, and environmental groups have long alleged it has driven deforestation. How JBS's listing trades will be a barometer on whether U.S. investors harbor concerns about the company, or are eager to get a piece of its prospects. JBS leaders have been trying to list shares in the U.S. since at least 2016. Company officials have said the move would help reduce its cost of capital and expand its branded product offering. JBS Chief Financial Officer Guilherme Cavalcanti said that the company isn't raising capital from the listing and that moving its shares from Brazil to the U.S. will open the company to a broader pool of potential investors. He said the company doesn't need a roadshow and regularly talks to investors at conferences. 'We are just doing bureaucratic things in changing an exchange,' Cavalcanti said in an interview. 'Why should I pay something to the bank, right, if I don't need them?' Named for founder José Batista Sobrinho, JBS began as a family-owned slaughterhouse in the Brazilian countryside. The Bastista family built JBS into a beef powerhouse in its home country, and harnessed government-backed loans to help fund an international acquisition spree that made it a global giant. JBS employs roughly 280,000 people around the world, processing protein ranging from beef to salmon and lamb. More than half of JBS's nearly $80 billion in sales now come from North America, where it is the largest U.S. processor of beef, the second-largest pork supplier and the majority owner of Pilgrim's Pride, the second-largest American chicken company. JBS reported a nearly $2 billion profit for 2024 compared with a loss the prior year, and its annual sales surpassed Wall Street analysts' estimates. The company's past efforts to list its shares in the U.S. were interrupted by market conditions following the Covid-19 pandemic, executives have said. JBS has also dealt with fallout from a corporate corruption scandal in Brazil. J&F Investimentos, which is run by the Batista family and owns about half of JBS's stock, admitted in 2017 to paying about $150 million in bribes to Brazilian politicians to help secure cheap government funding for acquisitions. Fallout from that episode landed the billionaire brothers Joesley and Wesley Batista in jail for several months. J&F in 2020 settled a corruption case with U.S. authorities, which it said was important to improving corporate governance efforts. Some of the largest American banks, including Morgan Stanley, JPMorgan Chase and Goldman Sachs, won't do business with JBS for compliance reasons, according to people familiar with the matter. A JBS spokeswoman said the company has a robust compliance program and uses a number of American, Canadian, European and Latin American banks. She said that as JBS board members, Wesley and Joesley Batista bring decades of operational experience, including turning around many of its U.S. acquisitions over the years. U.S. lawmakers and environmental groups have raised concerns over JBS's stock listing plan. Last year a bipartisan group of senators, including now Secretary of State Marco Rubio, called on the Securities and Exchange Commission to scrutinize the listing, saying it could 'subject U.S. investors to risk from a company with a history of blatant, systemic corruption, and further entrench its monopoly power.' Environmental groups have urged the SEC and NYSE to bar the listing, citing what they called JBS's record of profiting from Amazon deforestation, which the company has denied. Last month, shareholder advisory firms Glass Lewis and Institutional Shareholder Services recommended JBS investors vote against the company's listing plans. The firms said the listing could give J&F Investimentos, the company's controlling shareholder, roughly 85% of voting power in the U.S.-listed company. JBS secured approval from the SEC earlier this year. Company shareholders in late May approved a plan to restructure the company in the Netherlands and move forward with a U.S. listing. In addition to its primary New York listing, JBS will trade in Brazil through Brazilian Depositary Receipts, or BDRs. In a letter to the SEC, Michael Martino, founder of Mason Capital Management, a JBS shareholder, said that being publicly traded in the U.S. would enhance the company's governance. 'We see a company built over many years from nothing to $80 billion in sales,' Martino said. Write to Patrick Thomas at and Corrie Driebusch at Scale AI Gets Meta Investment That Values It at More Than $29 Billion Why Warner Boss Zaslav Is Having to Split Up the Media Empire He Built More Financial Advisers Are Outsourcing Investment Decisions Norway Wealth Fund Puts TD Bank Under Observation Live Q&A: Ask Us Your Air Safety Questions Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
