August 20, 2012

Swinging from a loss of BRL34 million (US$17 million) a year earlier, Brazil's JBS has reported a first-half profit of over BRL285 million (US$140.6m).

An expansion of JBS's domestic beef capacity and a move into poultry in its home market boosted sales and contributed to its improved bottom line.

JBS booked net revenue of BRL34.5 billion (US$17 billion) for the first six months of the year, up 17.7% on the year before. Consolidated EBITDA was BRL1.71 billion (US$848 million), an increase of 20.1% on the first half of 2011.

The company recorded net income of BRL285.6 million (US$142 million), compared to a loss of BRL33.8 million (US$17 million) a year ago when losses at its US poultry unit Pilgrim's Pride hit earnings. JBS posted consolidated net revenue of BRL18.5 billion (US$9.2 billion), 26.3% higher than 2Q11.

JBS USA Chicken (Pilgrim's Pride Corporation - "PPC") posted net revenue of US$2.0 billion and EBITDA of US$125.7 million in the period, reversing the negative result presented in 2Q11.

Adjusted net Income in the period was BRL212.9 million (US$106 million) excluding deferred income tax liabilities generated by goodwill (this deferred income tax is disbursed only if the company sells the investment that generated goodwill). Reported consolidated net income was BRL169.5 million (US$84 million). The Company ended the quarter with BRL5.475 billion (US$2.7 billion) in cash and cash equivalent, corresponding to more than 110% of short-term debt.

During the first semester 2012, net revenue totalled BRL34.5 billion (US$17 billion), 17.7% higher than first semester 2011.Adjusted net Income for the semester was BRL453.2 million (US$225 million) excluding deferred income tax liabilities generated by goodwill. First half reported consolidated net income was BRL285.6 million (US$142 million).