JBS posts 4Q, full year loss, but sales up
March 24, 2011
by Meat&Poultry Staff
SÃO PAULO – JBS SA announced a fourth-quarter loss of 539.3 million Brazilian reals (US$325 million), compared with a net profit of BRL127.9 million (US$77 million) in the fourth-quarter of 2009. The loss was attributed to non-recurring expenses regarding the redemption of outstanding debentures worth BRL521.9 million (US$314 million).
JBS SA announced a loss of BRL264 million (US$159 million) for the full year of 2010, compared to a profit of BRL220.1 million (US$132.3 million) one year earlier.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to BRL865.9 million (US$520.3 million) from BRL397.8 million (US$239 million) one year ago.
Fourth-quarter net revenue increased to BRL14.3 billion (US$8.6 billion) from BRL7.4 billion (US$4.5 billion). Net revenue for 2010 was R$55,055.8 million (US$33,080 million) – a 57.7% increase over the previous year.
“2010 was a year of various achievements,” said Wesley Batista, president and CEO. “We can highlight the integration of Pilgrim’s Pride into our American operations and the merger with Bertin into our Mercosul operations.”
Incorporating Bertin at the end of 2009 has increased significantly the company’s market share in Brazil, he said. But during the year, JBS SA made numerous attempts to resolve pending issues between the partners of Inalca JBS. These efforts, however, ultimately resulted in dissolving the partnership and signing of the Termination Agreement.
“Also in Italy, we took 100% control of Rigamonti, a company of which we already held 70% since December 2009, Batista said. The company produces about 7,000 tons of processed meat per year and has a 40% market share in the segment in which it operates.
“When we look back, we realize much has been done,” he added. “When we look forward, we see that there is still a lot to do.”
JBS SA will continue to work on its goal to be an integrated global food company and on its continuous search for new clients and markets in order to expand its distribution channels and exports.
“We are working with a macroeconomic scenario of increasing global demand for proteins this year, especially in emerging economies and of stable production in our productive sector to meet such demand,” Batista said. “We are confident that our company’s performance will improve substantially.”