JBS, the Brazil-based meat processor, has seen its fourth-quarter net losses narrow on the back of higher sales.
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The company, which owns JBS-Swift and Smithfield Foods’ former beef operations in the US, booked a net loss of BRL53.3m (US$22.3m) in the last three months of 2008 – against a loss of BRL136m in 2007.
JBS’s operating losses improved slightly from BRL116.6m in the fourth quarter of 2007 to BRL109.4m in the last three months of 2008. Net revenue reached BRL9.63bn, up from BRL6.65bn a year earlier.
JBS president Joesley Mendonca Batista said the company’s distribution network helped the business ride out the economic turmoil of late 2008.
“The last quarter of 2008 was marked by the reduction in credit and by speculation regarding the force and scope of the global financial crisis in the real economy,” Mendonca said yesterday (19 February).
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By GlobalData“Regardless, we had the opportunity to prove our solidity and risk management capacity which once again demonstrated strategically opportune financial stability for our group. Our integrated distribution network in each domestic market served us well at a time when international trade was unstable and uncertain.”
For the full year, JBS filed net income of BRL25.9m, compared to a net loss of BRL165m in 2007. Operating income reached BRL84.8m, against an operating loss of BRL74.8m in 2007.
Net revenue more than doubled from BRL14.14bn in 2007 to BRL30.34bn in 2008.
