By Jeffrey T. Lewis
Brazil's JBS SA, the world's largest meat processor, said Wednesday that its profit soared in the fourth quarter from a year earlier as the weaker real boosted revenue in the Brazilian currency.
The meatpacking giant said net profit jumped 65% to 4 billion reais, the equivalent of $711.6 million. Adjusted earnings before interest, taxes, depreciation and amortization rose 24.1% to 7 billion reais and net revenue rose 33.1% to 76.1 billion reais. Earnings per share increased to 1.53 reais from 0.91 real a year earlier.
The Brazilian real lost 23.7% of its value against the dollar in the fourth quarter compared with the same period in 2019, according to JBS. That boosted revenue from the company's three U.S.-based operations, JBS USA Beef, JBS USA Pork and Pilgrim's Pride, which together generated three quarters of JBS's revenue in the fourth quarter.
Revenue at JBS USA Beef, which includes sales to Australia and Canada, rose 26.9% to 30.3 billion reais, but declined 3.2% in dollar terms. Sales at JBS USA Pork rose 47.5% to 9.3 billion reais, and increased 12.5% in dollars. Sales at Pilgrim's Pride rose 33.4% to 16.8 billion reais, and increased 1.8% in dollars.
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(END) Dow Jones Newswires