JBS announces record profits

JBS announces record profits

JBS S.A. posted a record profit for its 2012 third quarter performance and announced plans to open six new beef-slaughtering plants in Brazil in 2013, increasing capacity there by 1.2 mill. head, or 15%, by July of next year.

The company reported net revenue of R$19.4 bill. ($9.4 bill.) for its fiscal 2012 3Q, a 24.4% increase over the R$15.6 bill. reported in the same period last year. JBS posted a profit for the quarter of R$367 mill. ($178 mill.), resulting from improved poultry operations in the US and positive results in its beef operations in Brazil. Gross income increased 46.2% to R$2.5 bill. ($1.2 bill.) over the previous year's same quarter of R$1.7 bill. (822 mill.).

JBS Pilgrim's Pride Corporation in the USA reported net revenue of $2.1 bill. and adjusted EBITDA of $105.6 mill. in the quarter, which compared positively to the negative results in the same quarter of 2011. EBITDA for the business unit was 5.1%.

JBS USA Beef reported revenue of $4.3 bill. in the quarter, a 1.6% increase over the previous year's 3Q. For the quarter, EBITDA was $175.1 mill.

The company recently announced plans to acquire Agroveneto S.A., a poultry production company in southern Brazil. It also agreed to manage the assets of Canada's troubled XL Foods, with an option to purchase the company's two plants as well as a feedlot and a farm in addition to XL's two plants in the US.

Plans for the opening of the six new plants in Brazil commence 19 November, when operations will start up at Rolim de Moura (in Rondonia). On 3 December, operations will begin at Nova Andradina (Mato Grosso do Sul), followed by Pontes e Lacerda and Vila Rica (Mato Grosso) on 7 January. Senador Canedo (Goias) is stated to start up 4. February and Castelo dos Sonhos (Para) on 8 April. Jerry O'Callaghan, head of investor relations, said by the end of 2013 the new plants would be able to produce 2 mill. head annually.

JBS Chief Executive, Wesley Batista said the future of beef production in Brazil is very positive compared to the US.

Meanwhile, net revenue for the JBS pork business for the quarter was $846.1 mill., 2.4% lower than the previous year. Revenue was stable compared to the company's 2Q12, as lower selling prices tempered higher slaughter numbers during the quarter.
Source: JBS