JBS SA reported first quarter net income of R$70 million ($31.51 million), down from R$227.9 million ($102.52 million) in the year-ago quarter.
The company attributed the result to the negative impact of its hedging activities. JBS incurred carry costs of R$270.0 million ($121.66 million), and the real appreciation also weighed on earnings. The company said: "This result was negatively impacted by carry costs...and by the income taxes in the period which amounted to R$139.7 million ($62.93 million)."
JBS revenues climbed 35.3 percent to R$26.4 billion ($11.89 billion). The company said revenues from all business units improved with the exception of its US chicken operations which remained stable. Mercosul posted a strong performance with a 26.9 percent increase in revenues on higher sales of beef in domestic and export markets. JBS Foods also performed well with net revenues of R$2.78 billion ($1.25 billion). JBS Foods is the company's new processed foods and poultry division.
On a segment basis, JBS USA Beef, which includes Australia and Canada, posted net revenues of $4.52 billion, an increase of 4.8 percent. Revenues improved on higher sales prices for both domestic and export markets, which offset higher prices for cattle.
JBS USA Pork reported net revenues of $896 million, an increase of 6.5 percent compared to the year-ago period. Higher prices for pork in domestic markets and stronger export volumes contributed to the result, according to the company.
Net revenues at Pilgrim's Pride Corp. declined 0.9 percent to $2.02 billion in the first quarter on weak sales prices for chicken which were partially offset by higher sales volumes in both the US and Mexico. Net income in the quarter was $98.1 million, an increase of 80 percent compared to a year ago.
