THE world’s largest red and white meat processor, JBS, recorded net profit of BRL3.44 billion (equivalent of A$1.27 billion) across its global operations for the third quarter ended September 30, the financial market was told earlier today.

The result was up 288 percent in the same period a year ago.

Net revenue for the quarter reached A$15.9 billion, up 40pc, while pre-tax earnings at A$1.4 billion were up 6pc on last year.

“We had a quarter of sustainable sales growth, consistent operating results and robust cash generation and net income,” the company’s global CEO Wesley Batista said.

“We have great confidence in our global food production platform which is being boosted by stronger an increased value-added product portfolio and with well recognised brands,” he said.

The company saw several opportunities to expand its business in the prepared foods and value added segment. “To achieve this goal, we will continue to invest in high quality products, innovation and brands,” Mr Batista said.

Strong financial gains from JBS’s South American derivative contracts, betting on the devaluation of Brazil’s currency, contributed to the net profit result, analysts indicated.

The company’s US beef division, including Australian and Canadian operations, posted net revenue equivalent to A$8.2 billion, a decrease of 1.7pc over the same quarter a year earlier. Pre-tax earnings were equivalent to A$281 million, a decrease of 61pc year-on-year.

The decline in net sales in the division was due to a decline in export prices, coupled with the devaluation of the A$ against the US$, the company reported. In the domestic markets, volumes sold increased primarily related to the consolidation of Primo Smallgoods in Australia.

The performance of the US beef business unit reflected a scenario of better stability in the US industry, with softening cattle prices, after a capacity reduction in the sector and consequent lower beef sales prices, reflecting in higher imports in the period.

In Australia, export volumes declined during the quarter, reflecting less availability of cattle. An increase in cattle prices in Australia has been partially compensated by the devaluation of the A$, financial analysts were told. The integration of the Primo business was now well advanced, and management “remained positive that the target to capture A$30m in synergies in the short term would be reached through the integration of the business into JBS Australia.

In other company divisions, the JBS Foods poultry and processed foods unit in Brazil posted a 48pc increase in net revenue to BRL 5 billion (A$1.85 billion). JBS’ beef production unit in Brazil, Argentina, Paraguay and Uruguay (JBS Mercosur) saw revenues rise 10pc, to BRL 7.1b (A$2.6b).

About 69pc of JBS global sales in the third quarter were made in domestic markets where the company operates, with the remaining 31pc through exports, the company reported.