JBS reports strongest quarterly profit ever in 3Q

by Erica Shaffer
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SÁO PAULO, Brazil – JBS SA reported its highest-ever quarterly profit in the third quarter.

For the quarter ended Sept. 30, the company posted net income of R$1.09 billion($424 million), or R$0.38 ($0.15) earnings per share, compared to R$219.8 million ($85.4 million), or R$0.08 ($0.03) earnings per share, in the year-ago quarter. Revenues advanced 27.1 percent to R$30.8 billion ($12 billion), up R$6.6 billion ($2.6 billion) from the third quarter in 2013, which yielded R$24.2 billion ($9.4 billion).

EBITDA, or earnings before interest in taxes, was R$3.6 billion ($1.4 billion), up 111.6 percent over the year ago quarter figure of 11.8 percent, JBS said.

On a segment basis, JBS USA Beef, which includes Australia and Canada, reported net revenues of $5.85 million, an increase of 24.7 percent over the third quarter in 2013. JBS attributed the increase to higher sales volume in both domestic and export markets coupled with a significant increase in prices. Japan, China and South Korea were the main markets for the company's beef business.

Net revenues at JBS USA Pork climbed 3.8 percent higher on an increase of 18.7 percent in sales prices in the domestic market and a 14.7 percent increase in export prices, the company said.

"The maintenance of pork prices in higher levels due to constraint supply, coupled with a decrease in raw material costs contributed to this quarter results," JBS noted.

Net income for the quarter soared 59.1 percent to $256 million at JBS USA Chicken (Pilgrim's Pride Corp.). The segment posted net revenues of $2.27 billion for the quarter, an increase of 5.8 percent. Sales at Pilgrim's increased 4.8 percent, of which 2.4 percent was due to an increase in volume and 2.4 percent was due to higher prices.

“Third quarter results reflect the discipline that Pilgrim's has demonstrated in managing the variables within our control. Our focus has been the consistent execution of our strategy to be a valued partner to our key customers, relentless pursuit of operational excellence and value-added export growth,” said Bill Lovette, CEO of Pilgrim's.
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