Brazil's JBS misses estimates as financial expenses soar

JBS SA, the world's largest meatpacker, on Monday reported second-quarter income that missed estimates as a spike in net financial expenses and its struggling South American operations weighed on results. JBS reported quarterly net income of 309.8 million reais ($97.16 million), below a consensus estimate of 603 million reais and an 80 percent drop from the same quarter a year ago.
Net financial expenses totaled 2.2 billion reais in the period, the worst in five quarters because of currency variations and adjustments in the fair value of derivatives, which together accounted for about half of the expenses, the company said.
Earnings before interest, tax, depreciation and amortization, a gauge of operating profitability, came in at 3.7 billion reais, above a consensus estimate of 3.4 billion reais, reflecting the good results in JBS's US, Australian and Canadian operations.