Marfrig achieves record net income in 2009

by Bryan Salvage
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SÃO PAULO -- Marfrig Alimentos S.A. announced record net income in fiscal year 2009 of R$ 679.1 million (US$322.73 million), reversing the net loss of R$ 35.5 million (US$19.8 million) recorded in 2008. Gross revenue in the year was R$ 10.28 billion (US$5.78 billion), up 52% from 2008.

Marfrig's risk-dispersion strategy, which was adopted at the company's founding, again proved well chosen – this time due to strong efforts in the domestic markets of the 13 countries where the company operates industrial facilities, the company said. Sales volume in these local markets accounted for 71.3% of the group's total sales volume and 63.9% of its total gross revenue.

In 2009, Marfrig sold 2.2 million tons of food in more than 100 countries, for growth in sales volume of 47.6% on the prior year. A portion of this advance was due to the full consolidation of the results of companies acquired in the second half of 2008, the increase in installed capacity utilization, the leasing of plants and the startup in Brazil of lamb and turkey operations.

During the last three years, Marfrig has invested approximately R$ 5 billion (US$2.8 billion) to acquire 37 companies in Brazil and abroad. Today, the group has operations in 13 countries, with a total of 92 industrial units and offices.

Marfrig carried out and announced various investments last year, including the implementation of lamb operations in Brazil, the acquisition of the turkey assets in Brazil of Doux Frangosul S.A., the capacity expansion at the Diamantino Agroindustrial Complex in Mato Gross state (accompanied by the installation of the country's largest and most modern hog-waste treatment system), the leasing of the units from Margen S.A. and Mercosul S.A. and the acquisitions of Seara Alimentos Ltda. and Grupo Zenda.

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