May 17, 2012

Marfrig Alimentos is expected to resume beef production at three plants in the second quarter this year due to stronger beef demand and improved movement in Brazil's beef cattle cycle.

Stronger domestic demand for beef and other food items contributed to the company's first-quarter profit of BRL34.5 million (US$17.3 million), which was an increase of 46.7% from the BRL23.5 million (US$11.56 million) the company posted in the first quarter of 2011.

Consolidated net operating revenue declined slightly to BRL5.23 billion (US$2.612 billion) from BRL5.25 billion (US$2.625 billion) in the comparable year-ago period. This also represented a 9.6% decline from the fourth quarter in 2011, the company said.

EBITDA for the quarter rose 21.8% to BRL410.7 million (US$205 million) from BRL337.3 million in 2011.

The company closed the sale of the specialised logistics services business of Keystone Foods in the US, Europe, Oceania and Asia to The Martin-Brower Company, raising Marfrig's cash position by US$390.1 million.