JBS: Profit Falls 79.8% In Q2, Misses Analysts Estimates

Xavier Trudeau
Août 17, 2017

In the 13 weeks to 30 June, its net revenue was £391.6 million (m) for the second quarter of the year, up 7.4% compared to the second quarter of 2016.

JBS' adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) totaled R$ 3.757 billion in the second quarter, rising 29.9% and surpassing analysts expectations of R$ 3.297 billion.

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 USA and European operations experienced growth in net revenue over the period.

Moy Park saw a "solid" rise in revenue in the second quarter of the year thanks to fluctuating currencies.

JBS SA, the world's largest meatpacker, on Monday reported second-quarter income that missed estimates as a spike in net financial expenses and its struggling South American operations weighed on results.

The results underscore the company's difficulties operating in Brazil, whose economy grew just 1 percent in the first quarter from the preceding one, marking an exit from its longest recession on record. Poultry operations in North America (Pilgrim's) registered an excellent performance, with an EBITDA margin of 18.7%.

JBS Europe - Moy Park held its own in comparison to other divisions.

"JBS' performance for the period is a clear demonstration of the quality of our business units around the globe and of the extraordinary team that we have".

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