JBS S.A. recorded a 74.2 percent drop in net income for the third quarter

JBS S.A. recorded a 74.2 percent drop in net income for the third quarter to BRL887.1 million (US$258.4 million), affected by a strong appreciation of the Brazilian currency that reduced the profitability of exports, and by an increase in grain prices, the company announced Monday night.Net revenue totaled BRL41.2 billion (US$11.9 billion), down 4.3 percent from the same period last year. The EBITDA (earnings before interest, taxes, depreciation and amortization) fell 18 percent to BRL3.1 billion (US$903 million), impacted mainly by the reduction in the EBITDA of Brazilian poultry and processed foods unit Seara and JBS Mercosul. JBS' consolidated EBITDA margin closed September at 7.6 percent, down from 8.9 percent in the same period of 2015.Seara reported a 8.6 percent drop in revenues to BRL4.6 billion (US$1.3 billion). The unit's EBITDA reduced 67.8 percent to BRL334.8 million (US$9.5 million), while the EBITDA margin plunged from 20.7 percent at the end of September 2015 to 7.3 percent this year.JBS Mercosul reported a 5 percent reduction in revenue to BRL6.8 billion (US$1.9 billion), while its EBITDA fell 47.1 percent to BRL339 million (US$98.7 million), and EBITDA margin fell to 5 percent in the third quarter of this year, from 9 percent in Q3 2015.“We believe the most challenging moment of our South American platform is behind us in the end of this third quarter, and that we will see profitability rebound over the coming periods,” CEO Wesley Batista said in the company's earnings release. “In the international operations, we are optimistic and confident about the performance of all our business units in the coming quarters, especially our U.S. beef business.”JBS USA Beef, which includes the group's operations in the United States, Australia and Canada, reported a 6.8 percent decrease in net revenue to US$5.4 billion, due to a reduction in beef sales prices in the American market. But this price reduction stimulated demand in the U.S. domestic market, and the unit's EBITDA increased 37.1 percent to US$ 269.9 million in the third quarter. Its EBITDA margin rose to 5 percent from 3.4 percent in the same period of 2015.JBS also increased its U.S. beef exports by 32.5 percent year-on-year, due to strong demand from Asian markets.Revenue from the U.S. pork meat unit rose 72.2 percent to US$ 1.3 billion due to the incorporation of Cargill's assets acquired in November 2015. There was also a 12.8 percent increase in pork prices in international markets. JBS USA Pork's EBITDA totaled $188.9 million, up 290.3 percent from the third quarter of last year, with a 14 percent EBITDA margin.U.S. poultry unit Pilgrim's Pride Corporation had a 3.8 percent drop in net revenue to $2 billion, reflecting a decrease in sales volume. The unit's EBITDA fell 23.1 percent to $210.8 million, and EBITDA margin stood at 10.4 percent.Moy Park, the poultry and processed food unit from the United Kingdom, had a 0.6 percent rise in revenue to GBP352.8 million ($440.7 million). EBITDA increased 17.1 percent to GBP31.4 million ($39.2 million), with an EBITDA margin at 8.9 percent.