Adjusted earnings, excluding certain one-time items, were 16 cents a share, compared with the 21 cents forecast by analysts polled by FactSet. Revenue rose to $22.74 billion from $22.6 billion a year earlier, below the $22.85 billion expected.

Chief Executive Gilberto Tomazoni said the challenging operating environment increased JBS’s leverage to 3.54x. Sales in its North American beef business climbed 4.3% to $7.56 billion, supported by improving conditions during the quarter, including the reopening of some U.S.-Mexico cattle crossings.

Tomazoni said the North American beef and Brazil businesses were positioned for more constructive market dynamics in the current quarter. JBS’s results come as it has offered to buy out poultry producer Pilgrim’s Pride, in which it already holds about 82%.