(Add details on drop in profit)
SAO PAULO, Aug 14 (Reuters) - Brazil’s JBS SA registered a net profit of 254.3 million reais ($112 million) in second quarter, down 25 percent from net earnings of 338.5 million reais in the same quarter a year ago, the company said in a filing on Thursday.
JBS, the world’s largest beef exporter, said currency hedging costs along with a one-off premium of 40.7 million reais paid on early liquidation of bonds negatively inflated the company’s financial losses by 65 percent to just over 1 billion reais in the quarter versus a year ago.
Net revenue, however, grew 32 percent to 28.97 billion reais from the second quarter of 2013, and earnings before interest, taxes, depreciation and amortization - a measure of cash flow known as EBITDA - grew 46 percent to 2.4 billion reais.
This outpaced the growth in cost of goods sold which climbed 30 percent to 24.71 billion reais from the same quarter in 2013.
JBS continues to reduce its net debt to EBITDA, a measure of the company’s leverage, to 3.15 in the quarter from a high of 4.03 in the third quarter of last year.
Meanwhile, the company has clearly stepped up its growth through acquisition strategy. On July 14, it signed a deal to take over local food processor Ceu Azul Alimentos. And on July 28 it and its U.S. poultry unit Pilgrim’s Pride acquired Tyson Foods Inc’s poultry divisions in Mexico and Brazil.
Reporting by Reese Ewing; Editing by David Gregorio, Bernard Orr