Marfrig swings back to profit in fourth quarter
Marfrig posts a 12-million real net profit
28 March 2024
1 minute read
By: Brazilian meatpacker Marfrig, the world's second largest beef producer, posted on Wednesday a 12 million real ($2.4 million) net profit in the fourth quarter, reverting a 628 million real net loss from a year earlier, reported Reuters.
Marfrig, which also controls US-based National Beef and Brazilian BRF SA, said its total net revenue fell 2.2% in the quarter year-on-year to 36.6 billion reais.
However, costs of goods sold fell 4.4%, driven by BRF operations, and financial expenses have lowered, helping its net profit.
Excluding BRF operations, a comparison closely watched by investors as BRF had already released its quarterly results, Marfrig's net revenue from operations in South American rose 7%, while its North America business posted stable net revenue, in US dollars.
Last year, Marfrig agreed to sell 16 slaughtering plants in South America in a deal worthing 7.5 billion reais, as it plans to focus on higher-value branded processed meat products and premium fresh cuts in the region.
Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 2.94 billion reais in the quarter, up 32.1% year-on-year, while its adjusted EBITDA margin increased 2 percentage points to 8%.
($1 = 4.9921 reais)
