JBS will keep its hedging policy
Despite its improved operating performance in the second quarter, the CEO of JBS, Wesley Batista, said last week that the net revenue of R$ 254.3 million in the period was below expectations. The company was penalized by the cost of maintaining its hedging policy.
"Net profit was below market expectations and below our expectations," he said in a conference call with analysts. According to Batista, the 24.9% fall in profit compared with the second quarter of 2013 reflected the payment of R$ 90 million to buy back bonds abroad, and - above all - the cost of the hedging strategy, which got close to R$ 350 million.
Despite this cost, Batista stressed that the company will continue with its strategy." Although it is a major cost, we believe it is insurance in a time of uncertainty on the political side. We believe it is for the best," said Batista. According to him, the hedging policy protects 100% of its currency exposure.