Moy Park owner JBS reports 80% drop in profits in Q2 results

JBS, the world’s largest meat processor and owner of Moy Park, has reported quarter two financial results that were worse than expected, due to currency variations affecting its operations around the globe.
The Brazilian firm reported quarterly net income of 309.8 million reais (£76.27 million), an 80% drop from the same quarter a year ago.
Net financial expenses reached 2.2 billion reais in the period, the highest in five quarters because of currency variations.

Earnings before interest, tax, depreciation and amortisation, a measure of operating profitability, reached 3.7 billion reais, which was slightly higher than expected, reflecting good results in JBS’s US, Australian and Canadian operations.

In the quarter, about 73% of JBS’s global sales occurred in the domestic markets where it operates, while 27% came from exports, it said.

The results underscore the company’s difficulties operating in Brazil, whose economy grew just 1% in the first quarter from the preceding one, marking an exit from its longest recession on record.

The quarter was also marked by an overhaul of internal processes after JBS was embroiled in a corruption scandal following witness testimony from owners Joesley and Wesley Batista, who confessed they spent millions to bribe politicians to win business.

Moy Park, was put up for sale by its Brazilian owner in June as part of a wider plan to raise about $6bn (£4.74 bn). JBS bought Moy Park from another Brazilian firm in 2015 for £1.16 bn.

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