BRAZIL: JBS profit rises as sales jump
By Katy Askew | 14 November 2012
- Profit rises
- Sales up one-quarter
- EBITDA up 75%
JBS Q3 profit up
Brazilian beef group JBS has booked an increase in third-quarter profits as sales rose by almost one-quarter in the period.
The company said net profit rose to BRL367m (US$178m) in the three months, up from a loss of BRL67.5m in the comparable period of last year. EBITDA rose 75.2% to BRL1.38bn.
Total group sales were BRL$19.4bn, up 24.% year-on-year. Gains were boosted by higher sales in its South American trading unit Mercosul, which rose to BRL4.6bn, up from BRL3.9bn.
"Much of the operating performance stemmed from the results JBS obtained in Mercosul," the company said.
JBS added that its performance also improved in Australia and it had benefited from a "better equilibrium" between supply and demand during the period.
JBS Discloses 3Q12 Results
Net Revenue totaled R$19.4 billion, 24.4% higher than 3Q11
Record Consolidated EBITDA was R$1.38 billion
Consolidated EBITDA Margin was 7.1%
Adjusted Net Income came in at R$495.4 million
Positive Operating Cash Flow of R$630 million
R$156.9 million Free Cash Flow
Leverage decreased significantly and was 3.68x at the end of the quarter
During the first nine months of 2012, net revenue totaled R$53.8 billion, 20.0% higher than 9M11
Consolidated EBITDA was R$3.24 billion, which was up 46.5% on 9M11
Year to date EBITDA margin was 6.0%
Adjusted net income in the period was R$948.6 million
*JBS S.A. (“JBS”) (Bovespa: JBSS3), the global leading producer of animal protein announces today its results for the third quarter of 2012 (3Q12). For the purpose of analysis, this report considers the results for the quarter ended June, 2012 (2Q12) and September, 2011 (3Q11). The consolidated results of JBS are presented in Brazilian Real (R$) and when separately analyzed, each business unit reports its results in the currency of the country in which it operates. The operations of JBS Australia are an integral part of the subsidiary JBS USA and both results refer to the period of 13 weeks ended September 23, 2012 (3Q12). The quantitative data, such as volumes and heads slaughtered, are not audited.
Results for 3Q12
? JBS posted record net revenue of R$19.4 billion, 24.4% higher than 3Q11.
? Consolidated gross profit was R$2,477.2 million, an increase of 46.2% over 3Q11 and 17.0% over 2Q12.
? Consolidated EBITDA for the quarter was R$1,378.8 million, an increase of 75.2% over 3Q11. EBITDA margin was 7.1%.
? JBS Mercosul presented revenue of R$4,597.8 million, 17.7% over 3Q11. EBITDA was R$665.6 million, an increase of 46.7% above the same period last year, with an EBITDA margin of 14.5%, 290 bps higher compared to 3Q11.
? JBS USA Chicken (Pilgrim’s Pride Corporation – “PPC”) posted net revenue of US$2.1 billion and adjusted EBITDA of US$105.6 million during the quarter, in contrast with the negative result presented in 3Q11. EBITDA margin for this quarter was 5.1%.
? JBS USA Beef, which includes Australia, presented revenue of US$4,275.9 million in the quarter, 1.6% above the same period last year. 3Q12 EBITDA returned to its normalized range for this business unit, and came in at US$175.1 million, with an EBITDA margin of 4.1%.
? JBS posted a record adjusted net income for the quarter of R$495.4 million (excluding deferred income tax liabilities generated through goodwill at the holding Company). This tax liability is a provision and is disbursed only if the Company sells the related investment.
? The Company ended the quarter with R$5.0 billion in cash, corresponding to more than 90% of short-term debt.
? Leverage decreased significantly and was 3.68x at the end of the quarter.
? Quarterly record exports totaled US$2,534.4 million, a 6.7% increase over 3Q11.
Original source: JBS
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BRAZIL: JBS profit rises as sales jump
14 Nov 2012 -