JBS Ebitda grows 99 percent in the first quarter, to $ 1,749 billion

The Ebitda (earnings before interest, taxes, depreciation and amortization) registered a growth of JBS 99% in the first quarter, to $ 1,749 million, against r $ 879,4 million from the same period last year, according to statement released by the company next to the consolidated income statement. In the first quarter, consolidated Ebitda margin was 6.6%.
"The result is a reflection of the JBS performance Foods, which recorded an Ebitda of r $ 379,8 million, as well as the good performance of the poultry and swine operations in the United States, who recorded a growth in Ebitda of 74.3 percent and 77.2 percent, respectively," said the statement from the company.
The drop in net profit in the first quarter of the year, when net profit was close to $ 70 million, was influenced, according to the statement, by the impact of the "cost of carry of the hedge of the company and income tax and social contribution in the period", which was r $ 139.7 million.
The net financial result gave a significant jump in the first three months of the year to r $ 869,3 million, compared to a net financial income of R $ 78.2 million in the same period last year.
In the first quarter, capital expenditures on durable, JBS industries and equipment totaled r $ 711,1 million, of which 40% corresponded to acquisitions of companies and assets, such as Zend, in Paraná, and cooling unit of the Kaiowa acquired in judicial auction. Recurrent investments, which corresponded to about 60% of the total, were directed to expansion of JBS's distribution platform, in the modernization of the industrial park in the United States and the expansion of the company as a whole, according to the statement.
Net debt fell 0.3% in the first quarter, to $ 23,679 billion, compared to R $ 23,748 billion in the last quarter of 2013. "JBS closed the 1T14 with a leverage of 3, 26 x, compared to 3, 70 x in 4T13. The reduction in net debt/EBITDA stems from the increase in EBITDA over the last 12 months thanks to the good performance of the PPC and pigs in the u.s. added to the result of JBS Foods, "says the Communique. According to the company, the reduction in the level of indebtedness should continue, "as the results of the JBS Foods are incorporated into trailling 12 months (the results of the harvest/JBS Foods were incorporated for 6 months in JBS S.A.)".
As to the cash generation, the communiqué States that the company ended the first quarter with "net cash generated by operating activities of $ 504,6 million reflects the increase in the value of stocks in the u.s. resulting from the increase in the average prices of beef and pork, offset by the increase in the purchase of cattle in sight in Brazil due to the high volatility in the price of the raw material".