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Marfrig Revenue Grows to BRR3.85 Billion

by 5m Editor
18 November 2010, at 9:47am

BRAZIL - Brazilian meat and food processor, Marfrig Alimentos S.A., has reported gross revenue for the third quarter of the year of 4.2 billion real (BRR), up 10.3 per cent on 2Q10 (BRR3.8 billion) and 63.9 per cent on 3Q09 (BRR2.5 billion).

The company said the rise has been driven by higher sales to the domestic market, including Food Service, and exports at the Beef and Nova Seara divisions in Brazil.

However, The company recorded a net loss of BRR30.9 million in the quarter, versus net income of BRR127.4 million in 2Q10 and BRR200.5 million in 3Q09 explained by higher financial expenses generated by the increase in accrued interest and by marking to market of hedge protection to the payment in the US dollars denominated acquisition of Keystone Foods.

On 22 September, the Company raised BRR 2.5 billion with the conclusion of the second issue of debentures that must be converted into shares within five years, which was allocated to the acquisition Keystone Foods LLC on 1 October, as announced in the Notice to the Market dated 23 June.

Net revenue was BRR3.9 billion, a rise of 8.3 per cent and 60.5 per cent compared to the second quarter of the year when it was BRR 3.6 billion and the third quarter last year when it stood at BRR 2.4 billion.

Gross income was BRR659.1 million in the third quarter, up by 4.2 per cent and 79.2 per cent compared to the second quarter of 2010 when it was BRR 632.3 million and in the third quarter of 2009 when it stood at BRR367.8 million.

Gross margin stood at 17.1 per cent, compared with 17.8 per cent in the second quarter of 2010 and 15.3 per cent in the third quarter of 2009.

Adjusted EBITDA was BRR282.6 million, up 13.3 per cent from the second quarter of 2010 (BRR 249.4 million) and 38.7 per cent higher than in third quarter of 2009 (BRR203.7 million).

Adjusted EBITDA margin stood at 7.3 per cent, compared to 7.0 per cent in 2Q10 and 8.5 per cent in 3Q09, explained by the absorption of higher cattle costs in Argentina, Uruguay and Brazil, the operational start-up of O'Kane Poultry in the Moy Park – Europe division and marketing investments in the Marfrig brands.