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Brazil: JBS made net profit in 4Q, 2009

JBS, one of Brazil's largest meatpackers, announced a net profit of R$127.9 million (US$71.5 million) for its last fourth quarter of 2009. Net revenue for the year was R$34 billion ($19.1 billion), representing a 13.1% increase year-on-year.

The Brazilian meatpacker finished last year with the growth revenue of 13.1% when compared to the prior year, mainly due to the acquisition of Smithfield Beef near the end of 2008, partially offset by the deteriorating market conditions related to the global crisis, and a reduction of sale prices in the US beef and pork operations.

In the last quarter of 2009, net revenue was R$7,408.9 million (US$4143.7 million), a 23.1% year-on-year decrease.

Tightening financials
In 2008, JBS SA tightened its financials, reduced its leverage and prepared itself for the difficult year ahead. “By the second half of 2009, we began to see the road ahead more clearly and were able to take our company to another level by making some relevant acquisitions,” said Joesley Mendonça Batista, chief executive officer.

In order to obtain a more diversified meat portfolio in the USA, late December 2009, JBS became Pilgrim's Pride controlling shareholder. JBS also acquired Tatiara Meat Company in Australia.

Pork business unit figures
JBS' pork business unit showed a net revenue in last years' fourth quarter of $605.6 million, 0.8% better compared to one year earlier which was $600.5 million. This reflects an increase in production volume, offset by a reduction in sales price, a consequence of the unfavourable market conditions in relation to fourth quarter of 2008.

In comparison to the previous quarter, the growth in revenue was 8.3%, which reflects an increase in volume sold due to the better market conditions because of the seasonal factors in the period, offset by a reduction in sale prices. For the whole of 2009, there was a reduction of net revenue, which reflects a global crisis that still affects markets, as well as the effects caused by influenza A (H1N1).

Related website:
• JBS SA

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