JBS reports $83M profit
The Brazilian meat packer posted net revenue of $9.1 billion during the second quarter vs. $7.2 billion during the same period last year, the company said in an earnings statement released Tuesday night. Earnings rebounded from the previous second quarter when the company reported an $89 million loss.
JBS U.S.A. Beef, headquartered in Greeley, saw net revenue of nearly $4.3 billion, an increase of 7.6 percent from last second quarter.
The upswing stemmed from a 4.3 percent increase in sales volume nationwide along with prices that were 7.1 percent higher, JBS said. The unit reported losses of $9.1 million before interest, taxes, depreciation and amortization vs. a $45.4 million loss last second quarter.
The high price of raw materials pressured margins, according to JBS.
The company's chicken unit, which consists of chicken producer Pilgrim's Pride in Greeley, reported revenue of nearly $2 billion in the second quarter. JBS U.S.A. is the majority stockholder of Pilgrim's.
Pilgrim's lifted JBS during the second quarter after posting net income of $69.4 million vs. a loss of $128 million the same period last year.
The company noted a sharp rise in grain prices used in chicken feed during the past two months. That will lead to a "challenging scenario" for the U.S. chicken industry, JBS said.
However, JBS believes the chicken industry "will work to pass on the increase in production costs to selling prices, thus preserving the profitability of the business."
JBS employs 6,000 people in Greeley.
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