SÁO PAULO, Brazil – JBS SA reported $146 million in net income during the second quarter, which is twice the amount of the $73 million it earned during 2Q12. Second-quarter net revenue totaled $9.3 billion vs. $8 billion. JBS SA’s US beef and chicken operations boosted its second-quarter earnings, the company relayed.
Net revenue for JBS USA Beef (including Australia and Canada) in 2Q13 was US$4,806.2 million, up 12.6 percent from 2Q12, due to a higher capacity utilization in JBS’ operations in Canada, coupled with an increase in sales prices in domestic and export markets.
Compared to 1Q13, net revenue was 11.4 percent higher, due to significant growth in volumes and prices of exports. EBITDA was US$161.7 million, reversing a net loss of US$9.1 million presented in 2Q12, as a result of the increase in prices of beef cuts in the US and of a better balance between supply and demand, which could be observed by the stability of cattle prices.
The EBITDA margin for the quarter was 3.4 percent. Results of this quarter reflect a greater demand for beef and an increase in export volumes, especially to the Japanese market, which increased 40 percent compared to 1Q13. JBS Australian exports to China increased 22 percent when compared to the previous quarter.
Net revenue in JBS USA Pork for 2Q13 totaled US868,5 million, up 2.9 percent year-on-year. This result reflects an increase in prices in domestic and export markets, partially offset by a decrease in export volume. Compared to 1Q13, net revenue recorded an increase of 3.1 percent, primarily due to a 12.0 percent increase in domestic prices.
JBS relays that the results of this quarter reflect an increase in demand during the period, which caused a gradual increase in sales prices and an increase in hogs in a period of seasonally reduced availability.
Net revenue for JBS USA Chicken (Pilgrim’s Pride Corporation, which is managed by JBS USA) for the quarter was US$2,184.3 million, 10.6 percent higher compared to 2Q12. This increase is primarily due to the incremental of 8.2 percent in revenues from the US domestic market, combined with a 32.6 percent increase in revenues from the PPC operation in Mexico, due to the improvement in revenue per lb. sold in both countries. The increase in chicken prices is primarily due to demand growth, which was boosted by retail and foodservice promotional activities in the US.
In 2Q13, total capital expenditure of JBS in property, plant, and equipment totaled R$369.7 million (US$160.5 million). The primary focus of investments were improvements in productivity, expansion of activities in Mercosul and Canada plus an increase in storage capacity and distribution over all regions.