Brazilian Marfrig's profits drop 44.5%

Net profit was pressured by purchases of BRF shares
calendar icon 9 March 2022
clock icon 1 minute read

Brazilian meatpacker Marfrig Global Foods SA reported on Tuesday a fourth-quarter net profit of 650 million reais ($128.46 million), down 44.5% year-on-year, pressured by purchases of BRF shares, reported Reuters.

The company said there was a negative effect of 1.176 billion reais from "mark-to-market of the investment in BRF shares and the rising interest rates," as the company raised its debt in local currency.

"Profit would be 1.7 billion reais were it not for the mark-to-market of BRF shares," said the company's chief financial officer, Tang David.

Last year, Marfrig bought a 33.25% stake in BRF, becoming the main shareholder in the Brazilian poultry and pork giant.

Marfrig's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled 4.18 billion reais in the quarter, a 98.3% jump from the same period the previous year.

Its North American unit, National Beef, accounted for most of the EBITDA, at 3.9 billion reais, up 141% from 2020.

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