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Marfrig Revenue Grows to R$3.85bn

18 November 2010

BRAZIL - Brazilian meat and food processor Marfrig Alimentos S.A. has reported gross revenue for the third quarter of the year of R$4.2 billion, up 10.3 per cent on 2Q10 (R$3.8 billion) and 63.9 per cent on 3Q09 (R$2.5 billion).

The company said the rise has been driven by higher sales to the domestic market, including Food Service, and exports at the Beef and Nova Seara divisions in Brazil.

However, The company recorded a net loss of R$30.9 million in the quarter, versus net income of R$127.4 million in 2Q10 and R$200.5 million in 3Q09 explained by higher financial expenses generated by the increase in accrued interest and by marking to market of hedge protection to the payment in the U.S. dollars denominated acquisition of Keystone Foods.

On 22 September, the Company raised R$ 2.5 billion with the conclusion of the second issue of debentures that must be converted into shares within five years, which was allocated to the acquisition Keystone Foods LLC on 1 October, as announced in the Notice to the Market dated 23 June.

Net revenue was R$3.9 billion, a rise of 8.3 per cent and 60.5 per cent compared to the second quarter of the year when it was R$ 3.6 billion and the third quarter last year when it stood at R$ 2.4 billion.

Gross income was R$659.1 million in the third quarter, up by 4.2 per cent and 79.2 per cent compared to the second quarter of 2010 when it was R$ 632.3 million and in the third quarter of 2009 when it stood at R$367.8 million.

Gross margin stood at 17.1 per cent, compared with 17.8 per cent in the second quarter of 2010 and 15.3 per cent in the third quarter of 2009.

Adjusted EBITDA was R$282.6 million, up 13.3 per cent from the second quarter of 2010 (R$ 249.4 million) and 38.7 per cent higher than in third quarter of 2009 (R$203.7 million).

Adjusted EBITDA margin stood at 7.3 per cent, compared to 7.0 per cent in 2Q10 and 8.5 per cent in 3Q09, explained by the absorption of higher cattle costs in Argentina, Uruguay and Brazil, the operational startup of O'Kane Poultry in the Moy Park - Europe division and marketing investments in the Marfrig brands.

TheCattleSite News Desk



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