JBS quarterly profits beat expectations

Sao Paulo | Reuters — Brazil’s JBS SA, the world’s largest meat processor, posted better than expected second-quarter profits on Wednesday, helped by a sharp increase in revenues from its pork business in the U.S., said the company.

São Paulo-based JBS earned 1.657 billion reais (C$650 million) in net income last quarter, compared with 252 million reais in the year-earlier period.

The number was much higher than analysts’ average consensus estimate of 439 million reais for profit in the second quarter, as compiled by Thomson Reuters.

JBS said its second-quarter revenue grew 12 per cent to 43.6 billion reais. Its U.S.-based pork business saw an increase of 72 per cent on revenues compared to the year-earlier period.

By comparison, JBS USA’s beef operations, which include its Canadian and Australian beef businesses, booked a 12.2 per cent decline in revenues.

“The gradual increase in cattle availability in the U.S. and consequently a reduction in (cattle prices) contributed to a decrease in beef prices,” the company said.

That decline, however, “helped to boost demand in the domestic market,” the company said. JBS USA’s second-quarter domestic beef sales, by volume, rose 5.2 per cent.

The company also reported good performance from its Brazilian processed meats unit Seara, despite the country’s recession.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were 2.89 billion reais in the quarter, 19 per cent below the year-earlier period.

Reporting for Reuters by Marcelo Teixeira. Includes files from AGCanada.com Network staff.

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