That and the company’s dollar-linked export businesses allow it to carry debt that is denominated 20 percent in reais and 80 percent in dollars, Investor Relations Director Jerry O’Callaghan said.īut this requires JBS to conduct extensive hedging on the global derivatives market to minimize the risks posed to its balance sheet by sharp swings in the Brazilian real-dollar exchange rate, Batista said.īrazil’s real has weakened 18 percent since May.

Today, nearly two-thirds of the company’s revenue comes from foreign operations. Little known even in Brazil when the company went public in 2007 with a share offering, JBS has vaulted through a stunning array of takeovers of distressed rivals at home and abroad to become the world’s largest meat producer. On Wednesday night JBS said its second-quarter net earnings doubled to 338.5 million reais from a year ago but still missed market expectations.

The company does not publish details of its profit margins in its earnings reports. poultry unit, but then start to fall in the fourth quarter, helping profit margins, he said.Ĭompany margins from Swift and Smithfield Beef, its beef businesses in the United States, would likely remain stable, he said, adding that cattle production costs are less responsive to swings in corn prices than poultry. Residual high costs for corn and other feeds would likely continue in the third quarter for Pilgrim’s Pride, the company’s U.S.

The Red Book by Jerry O'Callaghan