August 16, 2011

Marfrig's Q2 2010 revenue rises almost 50%

Marfrig Alimentos' net revenue amounted to BRL5.32 billion (US$3.27 billion), up 49.6% from BRL3.56 billion (US$2.19 billion) in Q2 2010 and 1.3% from BRL5.25 billion (US$3.22 billion) in Q1 2011.

Marfrig announced for its second quarter ended June 30, net income of R91 million (US$56 million) vs. R103.8 (US$63.8 million) for the second quarter of 2010. EBITDA was BRL277.8 million (US$170.6 million), up 9.7% from BRL253.2 million (US$155.5 million) in 2Q10 but declining 17.7% from BRL337.3 (US$207.2 million) million in 1Q11.

Beef exports accounted for 23.7% of Brazil's total beef exports in 2Q11, versus 20.7% in 1Q11 and 15.7% in 2Q10. Poultry exports also posted a strong performance, growing to account for 23.1% of Brazil's total poultry exports in 2Q11, versus 22.7% in 1Q11 and 19.9% in 2Q10.

Marfrig said it expanded product lines with new launches of value-added products in order to gain market share.

"The second quarter continued to pose the challenging environment seen since early 2011, with a weaker US dollar and high grain and livestock prices set against the backdrop of the financial scenario in Europe and the US, which continue to show signs of economic stagnation," said Marcos Molina dos Santos, CEO and chairman. "Despite this adverse operational environment, Marfrig worked to improve its cash flow by reducing its use of working capital, maintaining a high cash balance and improving its debt profile, with the percentage of short-term debt falling to 22.7%, from 29.6% in the previous quarter.