Brazilian meat giant JBS has booked a 12% fall in third-quarter earnings as raw-material costs and tax expenses jumped – but the company also reported rising operating profit and sales.

JBS, the world’s largest beef processor, posted net income of BRL133.5m (US$77.6m) for the three months to the end of September, down 11.9% on the year.

However, the meat group’s operating profit was up 28.9% at BRL281m, boosted by sales that climbed by more than two-thirds.

JBS’s third-quarter sales increased 67.9% to BRL14.07bn as revenues from its JBS Mercosul business – which covers Brazil, Argentina, Paraguay and Uruguay – more than doubled.

The Mercosul business accounts for 26% of JBS’s turnover. JBS USA beef – which also includes the Australia division – makes up 42% of revenues and saw its sales rise 18.1%.

For the full statement from JBS click here.