The Brazil-based meat processing giant, JBS, which is under investigation by officials in the Brazilian meat scandal, ran up losses for the first nine months of 2016 but made a profit in the last quarter, according to its latest results announced last week.

The world’s largest meat processor has a capacity to process 80,000 cattle/day across its global operations. Profits fell 15.1% to R$11.3bn (€3.4bn) for the full year ended 31 December 2016. Revenues increased by 4.5% to R$170.4bn (€51.2bn).

During the year, the meat processor was hit by recession in Brazil, which affected domestic consumption. Exports were also hit, due to the strengthening of the real against the dollar.

Profits in its US beef business fell 20% to $472.2m (€437m), while profit margins fell from 2.7% to 2.3%.

Performance substantially improved in the second half of the year, as “a cycle of greater cattle availability has begun” according to the company.

Its US pork business, which is the world’s 2nd largest producer of pork products, saw profits rise 77% to US$612.7m on the back of a 56% rise in revenues.

Moy Park

Moy Park, the Northern Ireland-based poultry processor purchased by JBS in 2015, saw its profits increase 13.5% to £131.9m in 2016, while margins expanded from 8.1% to 9.2% over the year.

The company said this was as a result of greater operational efficiencies and cost-cutting. Moy Park processed 265.7m birds in 2016 – 2.8% more than the previous year.

Last week, JBS entered into an agreement to buy Plumrose, a prepared and cooked meat supplier in the US from Danish Crown.

JBS’s decision last year to move its international headquarters to Ireland and list part of its business on the New York Stock Exchange remains in the air, after the Brazilian Economic Development Bank (BNDES) vetoed the proposed move.