JBS reports first quarter net income for 2012
Company to continue focusing on reducing costs, balancing supply and demand
JBS SA reported a net income of R$116.1 million (US$58.2 million) for the first quarter of 2012, with net revenue increasing by 9.1 percent compared to the first quarter of 2011, according to the company's latest financial report.
JBS USA Chicken posted net revenue of US$1.89 billion, up slightly from the fourth quarter of 2011 (US$1.82 billion), and earnings before interest, taxes, depreciation and amortization (EBITDA) of US$104 million in the first quarter. JBS initiated operations in the poultry industry in Brazil through the lease of Frangosul assets, with the capacity to process 1.1 million birds per day. The expansion in poultry and beef in Brazil, according to the company, will add an estimated additional annualized revenue of R$4.5 billion (US$2.26 billion).
The stable results of JBS USA Chicken reinforce the company's strategy to operate with low cost, operational efficiency and "spirit of ownership at all levels of the organization, according to JBS. The focus is to value all cuts of the bird and not be dependent only on the high price of white meat to raise margins and maintain profitability in the long run. The company will continue to focus on reducing costs and balancing supply and demand.