JBS and Marfrig focus on debt after injury

The JBS and Marfrig's results in the second quarter were marked by losses caused by the depreciation of the real. But analysts believe that the next balance sheets should be best, if companies comply with a promise to reduce debt. JBS ended the quarter with net loss of $826.9 million, compared with profit of R R $474.8 million in the same period last year. Marfrig already recorded a net loss of $582 million, compared to R R $262 million of losses in the second quarter of 2017. According to Agrifatto analyst, Lygia Pimentel, the operation of enterprises worsened a year here, but it's not as bad as the bottom line of their balance sheets could lead to believe. What really weighed in the quarter was the depreciation of the real against the dollar, causing impact on the companies ' debts, too tied to the U.S. currency. "The devaluation of the Brazilian real hit strong in financial expenses," says. The Chairman of the Board of Directors of JBS, Jeremiah O'Callaghan, said in Conference call to investors that the company's net debt fell R $2.1 billion in comparison to 2017. "The plan of reducing leverage goes on and we are focused on organic growth, we don't think in making acquisitions in the near future," he said, when reminded of the history of the refrigerator bought several competitors. In the case of Marfrig, the Chairman of the Board, mark Molina, ensured that the prospect for the business is better than predicted and that the sale of the Keystone-brand that operates with 19 production units in the USA, Asia and Oceania-laid down since the first quarter , must contribute to debt reduction. "Our commitment to leverage remains non-negotiable. When completed the sale of Keystone, we will be the company with less leverage in the industry, "he said. Lygia explains that the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) distributed a lot of credit for big refrigerators at the end of the last decade, which caused a significant increase in leverage. "This high leverage has to be reduced in the long term." Positive Outlook the analyst argues that the internal market will improve to the highest bidder of oxen and high level of retention of females at the national level, so that if companies fail to meet its debt reduction plans, the conditions shall be conducive to an improvement in quarterly numbers. " The component of economic upturn in domestic consumption will only have a clearer definition after the elections. In any case, it is important to reduce the leverage ratio to be less exposed to currency devaluation, "he concludes. In B3, Marfrig's actions had 6.42% drop the R $6.70, while JBS's papers were on the wrong side and rose 2.8%, to R $9.17.