November 14, 2016 / 11:57 PM / 2 years ago

UPDATE 1-Brazil JBS posts 74 pct drop in 3rd-qtr profit

(Adds details on drop in revenue)

SAO PAULO, Nov 14 (Reuters) - Brazil’s JBS SA, the world’s largest meat processor, on Monday posted a 74 percent drop in third-quarter profit compared with the same quarter a year ago, due to reduced net sales and rising financial costs.

Net profit for the company fell to 887.1 million reais ($258 million) in the three months ended in September, down from 3.44 billion reais a year ago and 1.54 billion reais in the second quarter, JBS said in a market filing.

JBS said its third-quarter net revenue fell 4 percent to 41.2 billion reais from a year ago. Most of the downward drag on sales came from clients in Mercosur, the trade block that includes Brazil, Argentina, Paraguay, Venezuela and Uruguay.

Adjusted earnings before interest, taxes, depreciation and amortization, a metric of operational liquidity known as EBITDA, fell 18 percent to 3.14 billion reais from a year ago.

Brazil’s BNDES development bank is the second-largest stake holder in JBS with 20 percent equity, after the Batista family that runs the company. The bank has veto power over certain company decisions such as administrative restructuring. ($1 = 3.44 Brazilian reais) (Reporting by Reese Ewing; Editing by Lisa Shumaker)

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