JBS: Net Income Falls 63.6% In 3Q17, Impacted By Tax Regularization Program

(RTTNews) - Brazilian meat packer JBS reported a R$ 323 million (US$ 98.3 million) net profit in the third quarter, down 63.6% from a year before, as costs related to a tax renegotiation with the Brazilian government weighed on the results.

Removing that impact, JBS's net income would have been R$ 1.9 billion, way above the average of analysts' projections, of a R$ 1.426 billion profit.

The company's net revenue totaled R$ 41.144 billion in the third quarter of the year, down 0.1% compared to the same period in 2016. The result was smaller than the estimate of analysts, who expected a R$ 42.368 billion net revenue.

JBS's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$ 4.319 billion in the third quarter, up 63.6% from a year earlier. The EBITDA margin stood at 10.5%, from 7.6% in the same quarter of 2016. Analysts bet on a lower EBITDA, of R$ 3.939 billion, with a 9.30% margin.

The results are unaudited because there is still a pending investigation of the facts related to the plea-bargain deal signed between J&F, JBS's holding company, and the Brazilian Public Prosecutor's Office (MPF).

The company's leverage ratio fell to 3.42 times at the end of the third quarter of this year, down from 4.16 times at the end of the second quarter.

Net debt was at R$ 45.539 billion in September, 9.6% lower than in June. The ratio between short-term debt (CP) and total debt stood at 27% in the third quarter, of which 73% are trade finance lines of the Brazilian units.