JBS releases Q3 results
14/11/2017
It posted net revenues of around $12.6 billion for the quarter, which is flat with the third quarter of 2016, down by only 0.1%. Gross profit on this amount rose by 28.2% compared to the third quarter of last year to reach $2 billion, which JBS attributed to a strong performance of its businesses in North America and Australia and, in Brazil, of its Seara brand.
However, charges JBS has incurred of around $700 million, which it has paid to join a tax renegotiation programme called Special Tax Regularisation Programme (PERT), mean that net income for the third quarter fell by 63.6% to $98.5 million.
A more striking aspect of the company’s financial status at the end of the third quarter is that penalties it has agreed to pay after a series of scandals that have implicated the company and some of its most senior people in bribery, corruption and insider trading, leave it with debt of almost $14 billion. JBS, which largely has a new management, believes it can trade its way out of this debt.
Another change is that, having divested operations in Uruguay, Paraguay and Argentina, the business unit it used to call JBS Mercosul is now called JBS Brazil. This is the business unit that includes the results of the group’s leather division, JBS Couros.
The group does not include figures for the performance of JBS Couros in publishing its results, but divestiture of the operations in neighbouring countries and a fall in cattle slaughter on home soil left JBS Brazil with net revenues for the third quarter of just over $1.5 billion, a decline of 24.4% compared to the same quarter in 2016.
Share this story:
