Underlying earnings fell in 2013, amid pressure on profits from domestic beef arm

Underlying earnings fell in 2013, amid pressure on profits from domestic beef arm

Brazilian meat group Marfrig fell into the red in 2013, hit by foreign exchange and losses from derivatives.

Marfrig booked a net loss of BRL816m (US$347.6m), which compared to a profit of BRL264m in 2012.

The company reported a 26% fall in EBITDA, which dropped to BRL1.38bn. Adjusted EBITDA, which excluded one-off items, was still down, sliding 4% to BRL1.45bn.

The fall in profits came in part due to lower margins at the company's Marfrig Beef, amid pressure on prices and an over-supply of beef at the start of the year.

Marfrig reported a 14% rise in net revenue to BRL18.75bn. Moy Park, its European division, saw sales increase 18%. Sales from Marfrig Beef climbed 14% to higher exports and domestic foodservice sales. Keystone, Marfrig's poultry arm, saw sales rise 10%.

Marfrig Beef continued to account for a majority of the company's adjusted EBITDA. However, in 2013, Moy Park generated 21% of the group's adjusted EBITDA, up from 16% in 2012. Keystone's proportion rose from 20% to 24%.

Click here for the full statement from Marfrig.