JBS Net income drops in second quarter

by Editor fleischwirtschaft.com
Thursday, August 17, 2017
Photo: JBS
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JBS Brazil


fleischwirtschaft.com — BRAZIL, São Paulo. In the 13 weeks to 30 June, the company’s net income was R309.8 mill., down from R1,536.2 mill. in the second quarter of 2016. JBS’ net revenue for the period was R41.7 bn. down 4.6% from the same period last year.

Its gross profit for the second quarter was R6.2 bn., with gross margin growing from 12.1% in 2016 to 14.8% in 2017, while the EBITDA was R3.8 bn., up 29.9% on the second quarter of the previous year.

The company’s expenses rose due to currency fluctuations over the period.

Its Brazil-based Seara and Mercosul divisions both saw year-on-year drops in net revenue, with the former seeing a 6.1% decline and the latter a 14.2% drop, which CEO Wesley Batista described as challenging. JBS was embroiled in the rotten meat scandal, which challenged Brazilian processors and led to a reshuffling of its management team, with Joesley Batista resigning from his position as chairman.

The company’s US and European operations experienced growth in net revenue over the period. JBS USA Beef (+5.9%), JBS USA Pork (+11.8%), Pilgrims Pride (+11%) and JBS Europe – Moy Park (+7.4%) all saw growth in the quarter.

 

Source: JBS SA
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