Brazil’s JBS SA, the world’s largest meatpacker, posted an unaudited net profit of 323 million reais ($98.50 million) in the third quarter, compared to 887 million reais in the same period a year earlier, the company said on Monday.
The result missed analysts’ consensus estimate for a net profit of 1.53 billion reais.
JBS reported a charge of 2.3 billion reais in the quarter stemming from its decision to join a federal tax renegotiation program, called PERT. Other companies, such as Petrobras, also reported charges as a result of the program.
The meatpacker reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 4.31 billion reais, above analysts’ consensus forecast of 3.9 billion reais.
JBS advised that its earnings report did not include a revision from an independent auditor since that will only be produced once the facts included in a lenience deal signed between the company and federal prosecutors have been investigated.
This is the first time the company has posted earnings since the arrest of Wesley and Joesley Batista, the billionaire brothers who until recently ran the world’s largest meatpacker founded by their father.
Brazil’s federal police arrested Wesley on Sept. 13, accusing him of insider trading before he signed a plea bargain with Brazilian authorities earlier in the year.
Wesley had been at the helm of JBS since 2011.
Joesley Batista, chairman of the board until May, had been arrested three days before his brother after recordings suggested he tried to take advantage of prosecutors and conceal details during negotiations that led to the brothers’ plea deal.
Following the arrests, the JBS board in mid-September voted to name company founder Jose Batista as new chief executive.
JBS had reported second-quarter net income of 309.8 million reais, below a consensus estimate of 603 million reais and an 80 percent drop from the same quarter a year earlier.