March 26, 2011

JBS posts Q4 loss for 2010

JBS SA has reported a fourth-quarter loss of BRL539.3 million (US$325 million) due to non-recurring expenses regarding the redemption of outstanding debentures worth BRL521.9 million (US$314 million).

JBS SA announced a loss of BRL264 million (US$159 million) for the full year of 2010, compared to a profit of BRL220.1 million (US$132.3 million) one year earlier.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to BRL865.9 million (US$520.3 million) from BRL397.8 million (US$239 million) one year ago.

Fourth-quarter net revenue increased to BRL14.3 billion (US$8.6 billion) from BRL7.4 billion (US$4.5 billion). Net revenue for 2010 was R$55,055.8 million (US$33,080 million) - a 57.7% increase over the previous year.

"2010 was a year of various achievements," said Wesley Batista, president and CEO. "We can highlight the integration of Pilgrim's Pride into our American operations and the merger with Bertin into our Mercosul operations."

Incorporating Bertin at the end of 2009 has increased significantly the company's market share in Brazil, he said. However, during the year, JBS SA made numerous attempts to resolve pending issues between the partners of Inalca JBS. These efforts, however, ultimately resulted in dissolving the partnership and signing of the Termination Agreement.

"Also in Italy, we took 100% control of Rigamonti, a company of which we already held 70% since December 2009," Batista said. The company produces about 7,000 tonnes of processed meat per year and has a 40% market share in the segment in which it operates.