JBS, the world’s largest meat processor, has posted a remarkable set of third-quarter results which show the company has come through one of the most high-profile corruption scandals in rude health.

Results released overnight show JBS recorded third-quarter sales of $12.6bn, which was in line with last year. However, earnings (EBITDA) increased a massive 37% to more than $1.3bn, as margins increased 290 basis points to a very strong 10.5%.

JBS has been in the midst of an asset for sale over recent months to reduce its highly leveraged debt position, which stood at 4.2 times earnings just three months ago. However, free cashflow generated from operations more than tripled in this latest quarter close to $985m, which increased liquidity in the business and allowed for JBS to significantly reduce its net debt position.

At the end of the quarter, net debt in JBS stood just under $14bn, leaving the company with a net debt to earnings ratio of 3.4 times. While this is still on the high side, it gives JBS more wiggle room than it has had over the last year.

Recently appointed as global chief operating officer at JBS, Gilberto Tomazoni said: “We achieved excellent results driven by strong performance in our international operations and solid improvement in our Seara business.”

Corruption scandal

JBS was at the centre of a corruption scandal that engulfed Brazil earlier this year. Wesley and Joseley Batista, the brothers who controlled JBS, were both jailed after confessing to bribing more Brazilian politicians and officials.

The scandal caused shares in JBS to fall sharply, while debt repayments spiked. This forced the group to put a number of assets up for sale in recent months, including Northern Ireland poultry processor Moy Park and a number of cattle feedlots in North America.

The company recently announced that Cork native Jerry O’Callaghan had been appointed as chair of JBS. O’Callaghan has worked with JBS for over 20 years, having first joined the Brazilian company in 1996. He has previously held roles in the company as head of investor relations as well as working in the group’s international business division.