JBS Net income drops in second quarter
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.