JBS provides for new tariff adjustments of rates for this year

JBS reduced prices in the Brazilian market in 8% in the second quarter and should promote adjustments in coming quarters, as a way to get banks after impact with high grain costs and the exchange rate, said executives of the largest processor of beef in the world on Thursday (11/8).
According to the Chief Executive of JBS, Wesley Batista, the recovery of the banks of Seara, Division of processed foods and in which the company has invested to rival BRF, should come with transfer pricing. The harvest ended the second quarter with Ebitda margin of 8.3% compared to 13.5% in the first three months of this year.
JBS had net profit of R$ 1.657 billion in the second quarter, a jump over the result a year earlier, supported by improved financial results.
According to Bailey, the company expects to generate cash in the second half of this year and is re-evaluating some investments to reduce the leverage ratio closer to the home of 3 times the net debt over Ebitda.
In the second quarter, JBS that relationship came in 4.1 times, compared with 2.56 times a year before and 3.84 times of the first three months of this year. The company ended the period with cash of about 8.5 billion R$.
Bailey said he believed that came to an end in the second quarter the negative cycle for the beef market, citing the increased exports of meat from the United States, which decreases the supply on the domestic market and promotes the prices.
"We are quite safe in this first half of the year we closed this low phase of the cycle. We believe very much in the potential of this business unit in the second half of the year and 2017, "said the Executive to mention beef operations of the company in the United States and in Canada.