JBS 2Q net income, net revenue up
Aug. 15, 2012
SÃO PAULO, Brazil – JBS SA announced for the fiscal second quarter of 2012, consolidated reported net income was R$169.5 million (US$83.6 million) vs. R$116 million (US$57 million) during the same period last year. Consolidated net revenue totaled R$18,468.3 million (US$9,113 million), an increase of 26.3 percent compared to last year’s second quarter of R$14,621.8 million (US$7,215 million). The increase was the result of the Brazilian Beef Business’ performance, the revenue increase in the JBS USA Beef unit and the devaluation of the real vs. the US dollar in the period.
Approximately 76 percent of global sales were generated domestically in the markets where the company has operations and 24 percent came from exports.
EBITDA totaled R$1,012.8 million (US$500 million) in the second quarter, up 72.3 percent compared to 2Q11. The improved consolidated performance was due to the result achieved by JBS Mercosul, which posted growth of 47.3 percent over 2Q11, and also due to the improvement presented by Pilgrim’s.
Year-to-date consolidated EBITDA was R$1,709.3 million (US$843 million), which represents an increase of 20.1 percent over the previous year’s same period. EBITDA margin in first half of the year was 5.0 percent.
Total capital expenditures of JBS in 2Q12 was R$403.1 million (US$199 million), 38 percent higher than this year’s first quarter. The main investments were in the start-up of the chicken operations and in the expansion of beef-processing capacity both in Brazil, as well as in the addition of storage and distribution capacity, principally in the US.
Net revenue for JBS USA Beef (including Australia) was US$4,266.9 million in this year’s second quarter, up over the previous year’s second quarter total by 7.6 percent. This reflects an increase of 4.3 percent in volume sold in the US domestic market, combined with prices that were up 7.1 percent. Revenue increased 4.6 percent vs. 1Q12, as a consequence of higher export volumes.
Although EBITDA was a negative US$9.1 million in 2Q12, there was an improvement compared to the 1Q12 number, which totaled negative US$45.4 million. Margins remained under pressure during the period due to the high price of raw materials. This result demonstrates a trend towards improving margins in the sector with the decrease of 4 percent in average cattle prices in relation to 1Q12, a movement that was more intensified in June, the company said.
Net revenue in JBS USA Pork for 2Q12 totaled US$844.0 million, 0.2 percent below 2Q11. An increase in the number of animals slaughtered year-on-year was offset by lower average selling prices especially in the export market. Versus 1Q12, revenue slipped 1.3 percent due to the decrease in the number of animals slaughtered resulting in reduced sales volume.
EBITDA totaled US$49.2 million in 2Q12 with an EBITDA margin of 5.8 percent. The total was influenced by reduced average selling prices in general due to oversupply of raw material in the period.
Net revenue in the 2Q12 for JBS USA Chicken (Pilgrim’s Pride Corporation, a US listed company controlled by JBS USA) was US$1,974.5 million, which was stable compared to 2Q11. EBITDA in the quarter was US$125.7 million, vs. negative US$47.6 million in 2Q11.
2Q12 net revenue for JBS Mercosul totaled R$4,317.7 million (US$2,131 million), up 19.4 percent vs. 2Q11 and 12.8 percent higher than 1Q12, principally due to the increase in the number of cattle slaughtered combined with higher sales volumes.
EBITDA totaled R$630.3 million (US$311 million) in 2Q12, an increase of 47.3 percent over the same quarter last year. Compared to 1Q12, EBITDA increased 23.9 percent. EBITDA margin at JBS Mercosul was a highlight and reached 14.6 percent in the quarter. The result of this business unit reflects an improved cattle cycle in Brazil and the company’s efforts to enhance operational efficiencies and to capture synergies.