BRAZIL: Meat giant JBS books H1 profit

By Dean Best | 15 August 2012

H1 profit of BRL285.6m
EBITDA up 20.1%, sales increase 17.7%
Domestic beef, poultry expansion helps growth

JBS expanded beef production and started poultry processing in Brazil

Brazil-based meat processor JBS has reported a first-half profit of over BRL285m (US$140.6m), swinging from a loss of BRL34m a year earlier.

An expansion of JBS's domestic beef capacity and a move into poultry in its home market boosted sales and contributed to its improved bottom line.

JBS booked net revenue of BRL34.5bn for the first six months of the year, up 17.7% on the year before.

Consolidated EBITDA was BRL1.71bn, an increase of 20.1% on the first half of 2011.

The company recorded net income of BRL285.6m, compared to a loss of BRL33.8m a year ago when losses at its US poultry unit Pilgrim's Pride hit earnings.

Show the press release

JBS S.A. (Bovespa: JBSS3)*

São Paulo, August 14th, 2012

Net Revenue increased 26% in 2Q12

Consolidated EBITDA surpassed R$1.0 billion

Adjusted Net Income of R$213 million

2Q12 HIGHLIGHTS

JBS posted consolidated net revenue of R$18.5 billion, 26.3% higher than 2Q11.

Consolidated EBITDA was R$1,012.8 million, an increase of 72.3% compared to 2Q11. EBITDA margin was 5.5%.

JBS Mercosul was the highlight of the quarter reporting net revenue of R$4,317.7 million, an increase of 19.4% over 2Q11. EBITDA increased 47.3% over the same period and was R$630.3 million with an EBITDA margin of 14.6%.

JBS USA Chicken (Pilgrim’s Pride Corporation – “PPC”) posted net revenue of US$2.0 billion and EBITDA of US$125.7 million in the period, reversing the negative result presented in 2Q11.

Adjusted net Income in the period was R$212.9 million excluding deferred income tax liabilities generated by goodwill (this deferred income tax is disbursed only if the company sells the investment that generated goodwill). Reported consolidated net income was R$169.5 million.

The Company ended the quarter with R$5.475 billion in cash and cash equivalent, corresponding to more than 110% of short-term debt.

1st SEMESTER, 12 (1S12) HIGHLIGHTS

During the semester, net revenue totaled R$34.5 billion, 17.7% higher than 1S11.

Consolidated EBITDA was R$1,709.3 million in 1S12, which is 20.1% above 1S11. EBITDA margin of the semester was 5.0%.

Adjusted net Income for the semester was R$453.2 million excluding deferred income tax liabilities generated by goodwill. First half reported consolidated net income was R$285.6 million.

Strategic Events

Start up in the poultry industry in Brazil through the rental of Frangosul assets, with a processing capacity of 1.1 million birds/day.

Ramp up of the beef business in Brazil adding new units with the capacity to process about 8,000 head/day.

Independent listing of Vigor S.A. through the conclusion of the Voluntary Public Tender Offer for the Acquisition of JBS Shares in Exchange for Vigor Shares.

Click here for the full release.

Original source: JBS

Sectors: Emerging markets, Financials, Meat & poultry

Companies: JBS, Pilgrim’s Pride

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