First quarter gains fall by half for Brazil's JBS

SAO PAULO Wed May 14, 2014 11:08pm EDT

SAO PAULO May 14 (Reuters) - Brazilian meats company JBS SA posted a net profit of 120 million reais ($54 million) in the first quarter, less than half the 242.2-million-real gain a year earlier, the world's biggest meats producer said in a filing late on Wednesday.

Despite the drop in first-quarter earnings, JBS posted net revenues of 26.42 billion reais, up 35 percent from the same quarter a year ago due to sales growth in all its divisions except its U.S. poultry business, which was stable.

The company derives 73 percent of its revenue from domestic sales in each of the country that it operates subsidiaries and 27 percent from exports out of Brazil, the United States, Australia and other countries.

Earnings before interest, taxes, depreciation and amortization, an indication of a company's ongoing operational strength known as EBITDA, was up 99 percent from a year earlier at 1.75 billion reais.

The EBITDA margin was also up at 6.6 percent from 4.5 percent a year ago.

(Reporting by Reese Ewing; Editing by Kim Coghill)

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