Losses at US poultry producer Pilgrim’s Pride have helped cause majority shareholder JBS, the Brazilian meat giant, to report a third-quarter loss.
JBS yesterday (14 November) posted a net loss of BRL67.5m (US$38.1m) for the three months to the end of September.
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The company, which owns a 64% stake in Pilgrim’s Pride, said losses of $162.5m at the US chicken business helped push the group into the red during the quarter. It also pointed to a one-off charge of BRL170.6m due to foreign exchange losses.
JBS said the “under-performance” of Pilgrim’s Pride also meant its EBITDA fell in the quarter, sliding 24.1% to BRL786.8m. The company also reported an operating loss of BRL76.7m, compared to operating income of BRL291m a year earlier.
Last month, Pilgrim’s Pride said lower prices for chicken and higher grain costs had led it to make a third-quarter loss.
However, the Brazilian firm’s net revenue grew 10.6% to BRL15.57bn, with sales up across its business, including from its US chicken operations.
CEO Wesley Mendonça Batista said the third quarter of 2011 was a “period of significant importance” for JBS. He said the company focused on capturing synergies from recent acquisitions and maintained that it had reported “good results” for the quarter.
