Brazilian meat processor Marfrig has posted a drop in second-quarter net profit as the business lapped last year’s second quarter, when results were boosted by foreign-exchange movements.

Marfrig yesterday (16 August) booked net profit of BRL127.4m (US$72.6m) for the three months to the end of June, against the second quarter of 2009, when the company had a foreign-exchange gain of BRL502.6m.

However, Marfrig’s EBITDA increased 56.1% to BRL286.3m on the back of a 48% rise in net operating revenue to BRL3.56bn.

CEO and chairman Marcos Antonio Molina dos Santos said Marfrig had made “important achievements” in the second quarter, including its BRL127.4 net income and “record” gross revenue of BRL3.8bn.

The Marfrig chief cited the company’s June acquisition of Keystone Foods, the US meat products group as “certainly one of the group’s most important acquisitions”.

The purchase of Keystone was one of three major deals in the last 12 months, including the May acquisition of Northern Irish processor O’Kane Poultry and the deal to buy Brazilian poultry business Seara Alimentos from agribusiness giant Cargill.

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“Our next challenge will be to integrate all companies acquired and capture all of the synergies provided by these operations,” Molina dos Santos said. “The still-slow economic recovery in various countries and the adverse industry conditions in certain markets where the company has operations should continue to produce a challenging scenario in the second half of 2010.”