A Brazilian meat packing giant has reported a net profit loss of almost 80 per cent, according to a report by Markets Insider.
JBS, which is the largest meat processing company in the world, reported a net profit of $97.1 million in the second quarter of 2017 – a 79.8 per cent drop from the same period last year.
The figure fell well short of analysts’ forecast of $153.09 profit.
JBS is currently at the center of a scandal, which has seen Brazilian President, Michel Temer hit with a conspiracy charge, after JBS bribed officials in order to keep substandard meat on the market.
This scandal, known as ‘Operation Weak Flesh’ is believed to have hit profits hard.
It has been described by some as Brazil’s biggest political scandal and the resulting arrests and reports had a hugely negative impact on the international image of Brazil’s agribusiness sector as a whole – resulting in JBS’ poor performance.