Brazil-based meat and poultry company JBS saw its net income drop 74.2 percent on a year-over-year basis during the third quarter of fiscal year 2016.

The company, in releasing its quarterly results on November 15, reported a net income of BRL887.1 million (US$256.7 million) for the quarter, down from the BRL3.44 billion (US$996 million) reported during the same period of fiscal year 2015.

While the company’s performance was satisfactory globally, struggles in South America held JBS back during the quarter, the company’s global CEO said.

“In our operations in South America we faced a challenging quarter, especially in Brazil, due to the strong real, which impacted the profitability of our exports, as well as the relevant increase in grain prices. Our global production platform and the diversification of our product portfolio allow us to mitigate challenging situations, while permitting us to pursue regional and/or segment opportunities,” stated Wesley Batista, Global CEO of JBS.

“We believe that the most challenging period for our platform in South America is over and we should see the recovery of the profitability in the next quarters. In our international operations, we are optimistic and confident with the performance of all our business units in the coming quarters, especially in our beef business in the U.S.”

US, Europe operations

JBS saw its net earnings before interest, taxes, depreciation and amortization (EBITDA) increase in three of its six divisions.

Its USA Pork operations saw its EBITDA increase of 290.3 percent. The JBS USA Beef operations saw a EBITDA increase of 37.1 percent. Its USA Chicken operations (Pilgrim’s), however, saw a drop in EBITDA of 23.1 percent.

EBITDA for JBS Europe (Moy Park) increased 17.1 percent.