BRAZIL, São Paulo. JBS SA reported its third quarter net income at $85.7 mill., a loss of $31.9 mill. from 2018; revenue for the quarter were up 5.6% from Q3 2018.
The company credited its Seara processing and beef divisions for its strong sales in the Brazilian market. Seara’s net revenue increased by 7.4%. JBS leadership referenced the acquisitions during the quarter that strengthened its position.
“We resumed our inorganic growth and made acquisitions in geographies where we are present and which will contribute to the expansion of our value-added and branded product portfolio,” Gilberto Tomazoni, Global CEO of JBS, said in a statement. “We announced acquisitions including Tulip, the leading producer of pork and prepared foods with operations in the United Kingdom. In Brazil, we completed the acquisition of a pork unit in Seberi (RS) and Seara announced an agreement to acquire Marba, a traditional cold cuts and sausage company in the state of São Paulo, which is awaiting the decision by the local antitrust authorities.”
Earnings before interest, taxes, depreciation and amortization (EBITDA) gained 33.6% in the quarter. EBITDA margin also increases from the previous year from 8% to 11.3%. JBS said the company reduced its leverage in the first quarter to 3.24 times the company’s annual EBITDA, compared with 4.23 reported a year ago.
Gross profit for the entire company stood at $8,951 million compared to $7,626 in the third quarter of 2018.
For its American subsidiaries, JBS USA Beef (including Australia and Canada) posted $5,625.4 mill., a 3.8% increase from Q3 2018 in net revenue. Gross profit for the segment was $665 mill., compared with $481.6 mill. reported in the year-ago quarter. JBS USA Pork recorded an 8.4% increase in net revenue which totaled $1,511.6 mill. in the third quarter of 2019, due to a growth in average sale prices and higher volume. Gross profit stood at $122.2 mill. compared to $135.3 mill. in 2018. For Pilgrim’s Pride Corp. (PPC), net sales for the first quarter were $2.78 bn., up 3% from last year’s number of $2.70 bn. Gross profits for Pilgrim’s were very strong going from $169.7 mill. in the 2018 quarter to $282.2 mill. in 2019. JBS also mentioned that reduction in leverage for the US dollar was 2.39x, the lowest level ever reached for the company.