Second quarter net income drop for JBS
In the 13 weeks to 30 June, the company’s net income was 309.8 million (Brazil Real), down from 1,536.2m (Brazil Real) in the second quarter of 2016. JBS’ net revenue for the period was 41.7 billion (Brazil Real) down 4.6% from the same period last year. Its gross profit for the second quarter was 6.2 billion (Brazil Real), with gross margin growing from 12.1% in 2016 to 14.8% in 2017, while the EBITDA was 3.8billion (Brazil Real), up 29.9% on the second quarter of the previous year. The company’s expenses rose due to currency fluctuations over the period. Its Brazil-based Seara and Mercosul divisions both saw year-on-year drops in net revenue, with the former seeing a 6.1% decline and the latter a 14.2% drop, which CEO Wesley Batista described as challenging.
JBS was embroiled in the rotten meat scandal, which challenged Brazilian processors and led to a reshuffling of its management team, with Joesley Batista resigning from his position as chairman. The company’s US and European operations experienced growth in net revenue over the period. JBS USA Beef (+5.9%), JBS USA Pork (+11.8%), Pilgrims Pride (+11%) and JBS Europe – Moy Park (+7.4%) all saw growth in the second quarter.