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Brazil-based meat supplier Marfrig saw its half-year losses narrow in the first six months of 2016, although its sales growth slowed in the second quarter versus the first three months of the year.

In the period to the end of June, Marfrig generated a net loss of BRL238m (US$75.8m), compared to BRL339m a year ago, with the company pointing to its “commitment with its financial discipline and capital structure”.

However, second-quarter losses stood at BRL132m, against a loss of BRL6m in the second quarter of 2015, when Marfrig booked a gain from the purchase of assets in Brazil.

Looking at Marfrig’s top line, the company posted an 8.7% increase in net revenue to BRL9.88bn. However, the rate of growth slowed to 1.1% in the second quarter, with Marfrig’s net revenue for the three months to the end of June reaching BRL4.77bn.

Marfrig’s adjusted EBITDA in the second quarter stood at BRL414m, up 0.9% on a year earlier. The company saw margins from US business Keystone grow despite lower commodity costs dampening revenue from the unit. However, the company saw profitability from its beef operations decline.

“The second-quarter results reflect the challenging scenario for the beef operation, where margins were adversely affected by lower international prices and, particularly in the Brazilian operation, higher cattle prices and the stronger Brazilian real,” Marfrig said.

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By GlobalData

The company said those trends were “partially offset” by “the good performance” at Keystone, which was supported by a “positive commodity environment” and a strategy of growing “key accounts” and value-added products.

First-half adjusted EBITDA was up 13.5% at BRL858.3m.

Marfrig maintained its forecasts for revenue and adjusted EBITDA margin for 2016, It expects revenues to reach BRL22-24bn, with an adjusted EBITDA margin of 8.5-9.5%.

However, the company plans to review the guidance during the third quarter of 2016, given economic conditions in Brazil.