SÃO PAULO, Brazil – JBS SA’s net income the first quarter of 2011 was R$147.0 million (US$91 million), 47.9 percent above 1Q10, equivalent to R$0.06 (US$0.04) per share. EBITDA was R$835.9 million (US$517.12) with an EBITDA margin of 5.7 percent. Net revenue was R$14,672.7 million (US$9077.10 million), 20.2 percent higher than 1Q10.

Exports increased by 17.4 percent compared to 4Q10, reaching US$2.45 billion.

JBS USA Beef (including Australia), which makes up 43 percent of JBS SA net revenues, achieved net revenues of US$3,793.3 million, which is 34.1 percent higher than 1Q10. 1Q11 results reflect an increase in volume and average sales price, the company said.

EBITDA was US$269.7 million in 1Q11, an increase of 58.2 percent and 38.5 percent over 1Q10 and 4Q10, respectively, with an EBITDA margin of 7.1 percent in 1Q11– a record for the period. These results were accomplished thanks to the focus in productivity and operational efficiencies implemented by management over the past years. Diversifying exports by opening new markets also helped improve the results.

JBS USA Pork, which makes up 10 percent of JBS SA’s total net revenues, achieved 1Q net revenue of US$836.6 million, which is 29.5 percent higher than 1Q10. This increase reflects a significant increase in export volumes and average sales price. EBITDA reached US$105.3 million in the quarter, 201.7 percent higher year-over-year. EBITDA margin was 12.6 percent in 1Q11. Regarding 4Q10, the increase was 2.8 percent. JBS’s Pork Business unit performance demonstrated a strong demand in exports, a streamlined operation, lower cost of production and an adjusted product mix with higher aggregated value in order to maximize performance, the company relayed.

First quarter net revenue for JBS USA Chicken (Pilgrim’s Pride Corporation, controlled by JBS USA), which made up 22 percent of JBS SA’s total revenue, totaled US$1,892.5 million. This total is 15.2 percent more than 1Q10, reflecting an increase in volumes sold. EBITDA totaled US$55.2 million, compared to US$59.5 million in 1Q10. The decrease in EBITDA reflects high grain prices and chicken products not following suit, the company said. Also, high input costs resulted in an increase in inventories of finished goods, which were reduced in 1Q11 and impacted the outcome in the period.

JBS Mercosul, which makes up 25 percent of JBS SA’s total net revenues, reported its segment’s net revenue was up 27.7 percent compared to 1Q10, reaching R$3,604.2 million (US$2,229.70 million). This was achieved due to an increase in sales prices and export volumes. EBITDA was R$308.3 million (US$190.73 million) in 1Q11, down 15.0 percent compared to 1Q10, due to increased raw material costs for the period.