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.
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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%.
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