SAO PAULO (Reuters) - Brazil’s JBS SA (JBSS3.SA), the world’s largest meat packer, said on Tuesday that financial benefits from acquiring processed foods brand Seara from its rival Marfrig SA (MRFG3.SA) were exceeding expectations.
Still, JBS shares fell 5 percent in Sao Paulo trading the day after the company posted lower than expected profit in the fourth quarter.
Gilberto Tomazoni, the president of the JBS Foods division that absorbed Seara, said benefits of the acquisition included new production lines, lower freight costs and a smaller number of distribution centers.
Financial details on JBS Foods will not be divulged until next quarter, however.
“The results are coming, and the synergies are being captured beyond what we had expected,” said Wesley Batista, JBS’s CEO said during a conference call to discuss earnings.
Batista said the company is making adjustments to its operations in the United States in response to a reduced number of cattle available for slaughter, which is at a 60-year low.
The company expects the cattle offer in North America to improve in 2015, however, he said.
Reporting by Fabiola Gomes and Caroline Stauffer; Editing by Stephen Powell