Volatile exchange rates and an “abnormally high” income tax rate have hit second-quarter profits at JBS, the Brazil-based meat giant.

The company said on Friday (13 August) that net income for the three months to the end of June stood at BRL3.7m (US$2.1m), down some 97% on the year.

JBS said “high volatility” in exchange rates during the second quarter affected the company’s hedging positions. The group said greater use of its working capital and the higher income tax rate also weighed on the bottom line.

Nevertheless, net revenue was up 52.5% to BRL14.12bn as JBS enjoyed a 37% rise in exports.

JBS’s EBITDA jumped from BRL379.8m in the second quarter of 2009 to BRL1bn in the second quarter of this year.