Marfrigs record-breaking Q3 sales could not overcome a weak Brazilian real

Marfrig's record-breaking Q3 sales could not overcome a weak Brazilian real

Brazilian meat giant Marfrig posted a net loss of of BRL540.0m (US$307m) in its third-quarter, despite record sales and cash flow.

The company said this was primarily due to the depreciation of the Brazilian real against the US dollar and high grain and cattle prices. Last year the company's net loss was BRL63.6m. 

Consolidated net operating revenue nearly doubled to BRL5.52bn from BRL3.81bn in the same period last year. EBITDA rose 169.3% to BRL$637.5m, while operating cash flow nearly trebled to BRL310.5m.

Marcos Antonio Molina dos Santos, Marfrig's CEO and chairman, said: "The third quarter of 2011 marked an important step towards the consolidation of Marfrig's long-term strategy.

"As expected, the company improved its operational efficiency, capturing synergies among the business divisions, reducing costs and expenses and generating BRL310.5m in operating cash flow.

"Despite the uncertainties in the global economic environment throughout the quarter, including inflationary pressure in the countries where we operate, exchange rate volatility and sustained high grain and cattle prices, we recorded robust net revenue growth."

During the quarter Marfrig began vertically integrated chicken production in China, with a slaughter volume of 5.4m birds in the period - as a result, the company now produces poultry locally on four continents.

It also announced exports from Brazil generated BRL1.86bn, 19.7% higher than its third-quarter in 2010.