JBS optimistic about China
14/08/2015
The Brazilian company’s tanning division, JBS Couros, is the biggest producer of leather in the world. The group does not single out the figures for JBS Couros in its results, but reports them as part of the performance of the Latin American part of its business, JBS Mercosul.
In the second quarter of 2015, JBS Mercosul recorded revenues of just over $2 billion, on which its earnings were around $107 million. Compared to the second quarter of last year, these figures represent a 22.7% increase in revenues, but a 40.6% fall in earnings.
In comments it made on releasing the results, JBS said the drop in earnings in JBS Mercosul was attributable to a decline in the margins it was able to achieve on meat sales in the Mercosul region. It said nothing specific about JBS Couros, but there were several points of interest.
JBS Mercosul revenues were up in Paraguay and Uruguay by 45% and 18% respecitvely. In its business in Argentina it recorded a 23% increase year-on-year in slaughter and a 19% increase in the volume of beef exports.
The company also mentioned that the restart of beef exports from Brazil to China in June 2015 gives grounds for optimism about growth for JBS Mercosul. Nine packing plants across Brazil now have clearance to export beef to China; JBS owns seven of them.
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