| Schedule of Changes in Goodwill |
| Changes in goodwill: | |
| | |
| | |
| |
| | |
December 31,
2025 | | |
December 31,
2024 | | |
December 31,
2023 | |
| Balance at the beginning of the period | |
| 5,417,134 | | |
| 6,105,020 | | |
| 5,828,691 | |
| Acquired in business combination | |
| — | | |
| 2,851 | | |
| — | |
| Business combinations adjustment (1) | |
| 1,981 | | |
| — | | |
| 11,842 | |
| Disposal | |
| — | | |
| — | | |
| — | |
| Exchange rate variation | |
| 433,460 | | |
| (690,737 | ) | |
| 264,487 | |
| Balance at the end of the period | |
| 5,852,575 | | |
| 5,417,134 | | |
| 6,105,020 | |
| (1) | Refers to the business combination adjustment for the acquisition
of JBS Terminais Ltda |
|
| Schedule of Significant Amounts of Goodwill Allocated |
For the purposes of
impairment testing CGUs have been aggregated into the following groups representing the lowest level within the Group at which the goodwill
is monitored for internal management purposes and that have significant amounts of goodwill allocated to them:
| CGUs | |
December 31,
2025 | | |
December 31,
2024 | |
| Brazil Beef | |
| 1,648,358 | | |
| 1,464,710 | |
| Seara | |
| 680,005 | | |
| 602,869 | |
| USA Pork | |
| 694,534 | | |
| 694,534 | |
| Australia Smallgoods | |
| 306,082 | | |
| 283,441 | |
| Australia Meat | |
| 276,876 | | |
| 256,395 | |
| PPC - Fresh Poultry | |
| 479,404 | | |
| 401,396 | |
| PPC - Brands & Snacking | |
| — | | |
| 262,431 | |
| PPC - Fresh Pork/Lamb | |
| 168,859 | | |
| 202,512 | |
| PPC - Food Service | |
| 185,841 | | |
| 173,125 | |
| PPC - Meals | |
| — | | |
| 58,178 | |
| PPC - Added Value (1) | |
| 349,816 | | |
| — | |
| Others CGUs without significant goodwill (2) | |
| 1,062,800 | | |
| 1,017,543 | |
| Total | |
| 5,852,575 | | |
| 5,417,134 | |
| (1) | On August 5, 2025, the indirect subsidiary JBS USA completed
the reorganization of its Cash-Generating Units (CGUs), driven by restructuring initiatives at its indirect subsidiary, Pilgrim’s
Pride Corporation (“PPC”), in Europe. This reorganization resulted in the redefinition of the structure of the CGUs “PPC
- Brands and Snacking” and “PPC - Meals”, which were consolidated into the new CGU “PPC - Added Value”.
No impairment loss was recognized for the year ended December 31, 2025 as a result of this reorganization. |
| (2) | Correspond to 12 Cash-Generating Units (CGUs) which, due to
their individually immaterial values, have been grouped under the category ‘Other’. |
|
| Schedule of Estimation of Recoverable Amount |
The key assumptions used in the estimation of the recoverable
amount are set out below.
| | |
December 31, 2025 | |
| | |
Brazil Beef | | |
Seara | | |
USA Pork | | |
Australia Smallgoods | | |
Australia Meat | | |
PPC - Added
Value | | |
PPC - Fresh
Poultry | | |
PPC - Fresh
Pork/ Lamb | | |
PPC - Food
Service | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Discount rate (pre tax) | |
| 14.7 | % | |
| 16.6 | % | |
| 9.4 | % | |
| 8.7 | % | |
| 8.7 | % | |
| 13.5 | % | |
| 13.4 | % | |
| 14.7 | % | |
| 13.7 | % |
| Terminal value growth rate | |
| 3.6 | % | |
| 3.6 | % | |
| 2.8 | % | |
| 2.0 | % | |
| 2.0 | % | |
| 2.0 | % | |
| 2.0 | % | |
| 2.0 | % | |
| 2.0 | % |
| Estimated growth rate (average for the next 5 years) | |
| 4.8 | % | |
| 14.4 | % | |
| 2.8 | % | |
| 8.5 | % | |
| 2.3 | % | |
| 2.7 | % | |
| 5.8 | % | |
| 0.8 | % | |
| 1.9 | % |
| | |
December 31, 2024 | |
| | |
Brazil Beef | | |
Seara | | |
USA Pork | | |
Australia Smallgoods | | |
Australia Meat | | |
PPC - Fresh
Poultry | | |
PPC - Brands
& Snacking | | |
PPC - Fresh
Pork/ Lamb | | |
PPC - Food
Service | | |
PPC - Meals | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Discount rate (pre tax) | |
| 14.4 | % | |
| 16.1 | % | |
| 9.5 | % | |
| 8.4 | % | |
| 8.4 | % | |
| 14.5 | % | |
| 14.6 | % | |
| 14.7 | % | |
| 14.8 | % | |
| 14.9 | % |
| Terminal value growth rate | |
| 3.6 | % | |
| 3.6 | % | |
| 2.5 | % | |
| 2.0 | % | |
| 2.0 | % | |
| 2.0 | % | |
| 2.0 | % | |
| 2.0 | % | |
| 2.0 | % | |
| 2.0 | % |
| Estimated growth rate (average for the next 5 years) | |
| 6.2 | % | |
| 14.1 | % | |
| 1.5 | % | |
| 8.8 | % | |
| 2.3 | % | |
| 10.6 | % | |
| 6.1 | % | |
| 4.7 | % | |
| 2.8 | % | |
| 3.4 | % |
|
| Schedule of Revenue Source |
| Operation | | Revenue source | | Specific operating costs | | Brazil Beef | | Sales from the beef operation in Brazil. | | Historical performance and price trends of raw materials, especially cattle and international freight. | | Seara | | Sales from pork, poultry, and prepared foods operations. | | Historical performance and price trends of primary raw materials and international freight. | | USA Pork | | Sales from pork operations. | | Historical performance and raw material price trends. | | Austrália Smallgoods | | Sales from Primo Foods Pty Ltd (pork) and related operations. | | Historical performance and hog price trends. | | Australia Meat | | Sales from beef operations. | | Historical performance and raw material price trends. | | PPC - Fresh Poultry | | Sales from fresh chicken operations. | | Historical performance and raw material price trends. | | PPC - Brands & Snacking | | Sales from private label products and snack food operations. | | Historical performance and raw material price trends. | | PPC - Fresh Pork/Lamb | | Sales from pork, lamb, and value-added operations. | | Historical performance and raw material price trends. | | PPC - Food Service | | Sales from food service operations. | | Historical performance and raw material price trends. | | PPC - Meals | | Sales from frozen entrées. | | Historical performance and raw material price trends. |
|