Brazilian beef producer JBS has swung into the black in the second quarter, boosted by an increase in sales and a drop in losses on foreign exchange.
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Net income for the period to 30 June reached BRL172.7m (US$94.2m), compared to losses of BRL364.4m a year earlier.
Net sales jumped 30% from a year earlier to BRL9.26bn. The figure was helped by expansion in Brazil and the inclusion of US firm Smithfield Beef.
EBITDA increased 30.2% to BRL384m. The company recorded net financial losses of BRL33.6m, an improvement on losses of BRL508.8m in the second quarter of 2008.
“As we enter the second semester of 2009, we see that the world is gradually climbing out of the crisis initiated in 2008,” said president Joesley Mendonça Batista. “There is more credit available and more importantly, the cost of new credit facilities are declining. International trade is picking up and protein consumption is returning to normalised levels.”
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By GlobalDataHe added: “Our international production platform built over the last number of years is now ready to capitalise on this movement of recovery.”
Batista said JBS, which posted a net loss of BRL322.7m in the first quarter of the year was now well positioned to grow in a “sustainable manner”.
He said the company would look to increase market share where it operates and fulfill its promise to reach the levels of market participation promised during 2007.
