JBS: Profit Falls 79.8% In Q2, Misses Analysts Estimates

(RTTNews) - The Brazilian meat packer JBS reported a net profit of R$ 309.8 million (US$ 97.15 million) in the second quarter of 2017, a 79.8% decrease over the same period in 2016. Analysts expected a R$ 488,175 million (US$ 153.09 million) profit.

The company's net revenue in the second quarter totaled R$ 41.674 billion (US$ 13.068 billion), 4.6% lower from the same period of 2016 and in line with market estimates of R$ 41.671 billion.

JBS' adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) totaled R$ 3.757 billion in the second quarter, rising 29.9% and surpassing analysts expectations of R$ 3.297 billion.

JBS said that foreign exchange fluctuation hurt the second quarter results, while its operations in the United States boosted the company's performance.

Analysts expected JBS results to be driven by the strong performance in the United States since in Brazil the company faces obstacles to raise margins and is also involved in a corruption scandal. JBS officials were at the center of a plea bargain deal that led to a corruption charge against the Brazilian President, Michel Temer.

JBS' leverage ratio, which measures the company's net debt as a multiple of the EBITDA, rose to 4.16 at the end of the second quarter, lower than the 4.23 ratio reported at the end of March.

Net debt was at R$ 50.375 billion in June, 5.4% higher than in March. The ratio of short-term debt to total debt was at 30% in the second quarter, of which 72% are export-backed lines of the JBS' Brazilian units.