Finance, FX costs weigh on Marfrig

Finance, FX costs weigh on Marfrig

Marfrig, the Brazilian food group, booked a mixed set of third-quarter results, with a rise in sales and operating earnings failing to offset the impact of higher finance and foreign exchange costs on the bottom line.

Consolidated net revenue grow 6% year-on-year, rising to BRL5.2bn (US$2bn). Top-line growth was underpinned by an 11% jump in sales from the group's beef and lamb business, Marfrig, and 10% higher sales at UK-based Moy Park. These gains offset lower sales at US meat business Keystone, where revenues were down 5%.

Consolidated adjusted EBITDA grew 16% to BRL435m. Growth was again driven by Marfrig and Moy Park, where EBITDA was up 25% and 24% respectively. Keystone adjusted EBITDA was down 9%.

While Marfrig saw an overall improved operating performance the bottom line was dented by foreign exchange costs and higher financial expenses. The group's net loss therefore jumped to BRL718.1m, up from BRL481.8m in the year-ago period.

Shares in the company were down 3.96% at 12.46 BRT, dropping to BRL5.81.

Click here to view Marfrig's Q3 filing