Marfrig Sees Large Revenue, Profit Growth04 April 2013
BRAZIL - Brazilian meat and poultry processor, Marfrig, has seen net revenue growth of 21.0 per cent in the fourth quarter of 2012 compared to the same quarter in 2011 and growth of 12.9 per cent in the whole year compared to 2011.
The company said the revenue growth reinforces the focus on two-digit organic growth at both Seara Brasil and Keystone in Asia.
Consolidated EBITDA growth was R$2.13 billion or 20.3 per cent in the year with EBITDA margin of 9.0 per cent, compared to R$1.77 billion in 2011 with EBITDA margin of 8.4 per cent.
The company had net profits (EBITDA) of $405.9 million in the fourth quarter, which was impacted by the record increase in grain prices and the logistical challenges faced by Seara Brasil in integrating the new assets and distribution centres arising from the asset swap agreement with Brasil Foods.
These changes are still in the process of being carried through and have been operating at below optimum levels, Marfrig said.
The company has shown an improvement in net loss before equity interest to R$223.9 million in 2012, from R$746.0 million in 2011.
The company said the group's balance sheet was strengthened by a R$1.05 billion public share offering in December, which helped bolster the balance of cash and marketable securities (R$3.2 billion at end of period).
Refinancing of short-term debt facilities through the $600 million Senior Notes issue was concluded in January 2013 and the company renewed the $600 million revolving credit facility at Keystone Foods composed of a $200 million loan maturing in seven years and a $400 million revolving credit facility maturing in five years. This will be concluded in the coming weeks.
The company said that Seara Brasil has the potential to improve its cash generation from the second quarter of this year although margins in the beef segment remain pressured in early 2013, but the company said it remains cautiously optimistic about the remainder of the year.
ThePoultrySite News Desk