Brazil-based meat giant Marfrig today (14 August) booked a second-quarter profit, moving back into the black after a loss in the corresponding period last year.
Marfrig, which owns the Seara brand, posted net income of BRL15.5m (US$19.1m) for the three months to the end of June. A year earlier, it filed a net loss of BRL91m as financial expenses hit its bottom line.
The company’s EBITDA more than doubled from BRL277.8m to BRL767.6m. Marfrig said the gain was due to “the dilution of fixed expenses, improvement in gross margin and gains from the purchase and sale of assets in the period”.
The sale of a logistics operation in April, for example, boosted Marfrig’s profits.
However, net revenue increased 9.3% to BRL5.82bn thanks to increased sales of “higher-value” products. Gross profit was up 19.7% at BRL852.9m as the improved sales offset higher soybean costs.