JBS first quarter loss18 May 2009
According to Meatingplace.com, JBS SA have reported that their first-quarter loss widened largely on debt servicing costs and losses in their Argentine beef business. The world's largest beef producer said losses in the first quarter of 2009 widened to 322.7 million reais ($155.4 million) from a loss of 6.6 million reais ($3.2 million) in the same period a year earlier.
Sales rose 58% to 9.27 billion reais ($4.42 billion) as the company integrated Australia's Tasman Group and Smithfield Beef Group. As well as the losses in the Argentine, JBS primarily blamed expenses of 446.6 million reais ($213 million) related to interest expenses on 5.97 billion reais of debt and export contracts from the second half of 2008 that resulted in cancelled contracts and delays that impacted hedging positions and related cattle purchases. JBS president Joesley Batista said in a statement the company has 'gone back to using a healthier commercial policy which includes pre-payments on exports and Letters of Credit confirmed by first class banks.' Meanwhile, JBS Argentina saw sales jump 43% but plunging export volumes widened their EBITDA (earnings before interest, taxes, depreciation and amortization) loss to 32.7 million reais ($15.6 million) from 13.4 million reais ($6.4 million) in the first quarter 2008.