August 15, 2014

JBS sees 25% fall in profit in Q2

 

Brazil's JBS SA, the world's largest beef exporter, posted a net profit of BRL 254.3 million (US$112.48 million) in the second quarter, down 25% on-year, the company said in a filing on August 14.

JBS said currency hedging costs along with a one-off premium of BRL 40.7 million (US$18.00 million) paid on early liquidation of bonds negatively inflated the company's financial losses by 65% to just over BRL 1 billion (US$442.42 million) in the quarter versus a year ago.

Net revenue, however, grew 32% on-year to BRL 28.97 billion (US$12.92 billion), and earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 46% to BRL 2.4 billion. This outpaced the growth in cost of goods sold which climbed 30% on-year to BRL 24.71 billion (US$1.06 billion).

The company has recently stepped up its growth through acquisition. On July 14, it signed a deal to take over local food processor Ceu Azul Alimentos; and on July 28, JBS and its American poultry unit Pilgrim's Pride acquired Tyson Foods Inc's poultry divisions in Mexico and Brazil.