BNDES to reduce its stake in JBS

BRAZIL – Brazil’s state-owned development bank, BNDES, has decreased its ownership in meatpacker JBS from 20.8% to around 18.2% and is planning to continue offloading shares, according to sources familiar with the matter.

The decision follows a view within the bank that JBS has matured as a business and no longer requires the same level of public investment support.

The bank’s investment division, BNDESPar, had been a significant shareholder since 2007, playing a central role in financing JBS’s international expansion, which included acquisitions of US-based Swift and Pilgrim’s Pride.

Sources told Reuters that Tuesday saw the highest daily volume of share sales as part of this reduction, with JBS confirming in a filing that the changes occurred between April 23 and May 20.

JBS shares have risen approximately 22% so far this year on the São Paulo stock exchange, a trend linked to the company’s ongoing preparations to become primarily listed in the United States.

Despite the recent sales, BNDES is not planning an immediate full divestment and has no set deadline to exit completely, with future sales expected to depend on market behavior.

One of the sources said that the sales would allow the bank to increase liquidity and redirect funds to other investment opportunities.

JBS earnings rise as U.S. listing nears

This development comes as JBS reported a 28% increase in net revenue for the first quarter of 2025, alongside a 77.6% rise in net income compared to the same period last year.

The company also posted an adjusted EBITDA of US$1.75 billion (BRL8.9 billion), with an EBITDA margin of 7.8% for the quarter.

JBS attributed the performance to its global footprint, production efficiencies, and product development strategies.

During the quarter, the company completed its registration with the U.S. Securities and Exchange Commission as part of plans to list on U.S. exchanges, while continuing to trade depositary receipts in Brazil.

Plant upgrades in Santa Catarina

Following the financial report, JBS confirmed an investment of US$37.8 million (BRL 216 million) aimed at upgrading four Seara food processing plants in the southern state of Santa Catarina.

The funds will support expansions and modernization efforts expected to create 278 direct jobs across the facilities.

A total of US$17.1 million (BRL 98 million) will go toward increasing pork processing capacity at the Itapiranga plant, enabling it to handle an additional 600 pigs daily.

Another US$15.6 million (BRL 89 million) is being spent on a new breeding stock farm at the Bom Retiro facility to support supply chain needs.

Smaller investments of US$2.6 million (BRL 15 million) and US$2.4 million (BRL 14 million) are being made at poultry plants in Itaiópolis and Nova Veneza, respectively.

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