Marfrig swings to Q3 loss
Nov. 13, 2013
by Meat&Poultry Staff
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SÃO PAULO, Brazil – Marfrig Alimentos reported a net loss of R194.1 million ($83 million) on consolidated revenues of R4.9 billion ($2.1 billion) for the third quarter. This compares to a net profit of R90.6 million ($38.8 million) in the year ago quarter.
The company attributed the result to debt service costs of R418 million ($178.9 million). The company said it also incurred interest and exchange variation from debt transferred after the sale of Seara Brasil and Zenda for R$102 million.
"These pressures will no longer exist in 4Q13, supporting the strategy to reduce interest expenses," the company said.
Revenues at Keystone Foods posted gains of 15 percent above the second quarter, according to Marfrig. Earnings for the quarter were R1.48 billion ($633.5 million), up from R1.29 billion ($552.2 million) in the second quarter. The company attributed the growth to higher sales volumes to key accounts in the United States and higher sales volumes and prices in its Asia operations.
"In Asia, sales volume grew in 3Q13 driven by the still-gradual recovery from the impact of the avian flu outbreak and by the stronger sales in Korea (domestic market), Malaysia and Thailand (export market, with sales to the Middle East and Singapore), which were offset by the lower sales to Japan (from China and Thailand)," the company said.
Moy Park posted net revenues of R1.22 billion ($522.3 million) in the third quarter, an increase of 8 percent compared to second quarter revenues. Continued strong sales across Moy Park’s retail and food service channels in the United Kingdom, Ireland and continental Europe markets lifted earnings in the business, the company said. Moy Park also recorded strong sales in both fresh poultry and convenience foods. Moy Park is the United Kingdom's second largest integrated producer of prepared food products made from poultry.
Net revenues at Marfrig Beef grew 10 percent to R2.240 billion ($959.2 million) during the third quarter compared to 2.04 net revenues in the previous quarter. The company said fresh beef exports from Brazil exceeded 55 percent and domestic market prices for beef were higher.