Marfrig 3Q net revenue a record-breaker
November 17, 2010
by Bryan Salvage
SÃO PAULO, Brazil – Marfrig’s net revenue for the third quarter was R$3.9 billion (US$2.3 billion), which is the most in its history and 60% more than the R$2.4 billion (US$1.4 billion) recorded in the same period last year. Net revenue grew by 8.3% compared to the prior quarter.
Driven by strong sales in Brazil, Marfrig recorded gross revenue of R$4.2 billion (US$2.4 billion) in the third quarter, 63.9% more than in the same period last year and 10.3% (or R$400 million/US$232 million) higher than in the previous quarter. In the nine months to September, gross revenue has already surpassed R$11.3 billion (US$6.6 billion).
Marfrig’s foodservice sales channel sales volume and average price increased 9% and 8%, respectively, compared to the same period last year. Marfrig's market share in beef exports expanded to 18.9%, up from 15.7% in the prior quarter and 11.6% in the third quarter of 2009.
Adjusted EBITDA of R$283 million (US$164 million) increased by 38.7% compared to the same period of 2009 and by 13.3% compared to the prior quarter.
"Marfrig is positioning itself closer and closer to its main clients [final consumers and food service chains], while expanding its market share, especially at its units in Brazil, adding new higher value added products and making rapid progress in capturing synergies and creating a common corporate culture based on ethics and sustainability," said Marcos Antonio Molina dos Santos, CEO.
Third-quarter results for the company include consolidation of the results from O'Kane Poultry, a company from Northern Ireland acquired at the end of August that added daily production capacity of 120,000 chickens and 5,000 turkeys to the company's operations. At the end of October, the process to acquire Keystone Foods concluded and its results will be consolidated into the financial statements only in the coming quarter.
During the quarter, Marfrig invested R$143 million (US$83 million) to maintain, modernize and expand its operational units, with the highlight the start of construction works on the Rosario D'Oeste agroindustrial complex in the state of Mato Grosso, which will support stronger growth in its poultry and pork operations in Brazil's Midwest region.