SAO PAULO, May 16, 2011 /PRNewswire/ -- Marfrig Alimentos
S.A. (BOVESPA: MRFG3 and NYSE (Level 1 - ADR): MRTTY), a global
food company, today reported results for the first quarter ending
March 31, 2011.
Marfrig produced its best performance to date for first quarter
revenue despite a highly challenging global backdrop after Beef
Brazil and Seara drove market share gains in our core Brazil market. Seara synergies, Keystone
Foods, Beef Brasil and Europe
performances, cost-cutting measures and the ability to offset cost
increases partly helped Marfrig balance higher grain prices and the
impact of accrued interest on net profit.
Key Financial, Operational and Strategic Highlights
- Net revenue totaled R$5.25
billion, up 64.3% from 1Q10's R$3.20
billion and a 1.2% decrease versus 4Q10's R$5.32 billion, despite seasonal weakness
typically seen in the first quarter
- Gross income was R$728.8 million,
up 33.4% on 1Q10's R$546.3 million,
from R$851.8 million in 4Q10
- Net profit totaled R$25.2 million
versus a loss of R$52 million in
1Q10
- Marfrig unveiled two joint-ventures in China with the country's leading food
producers
- Value-added products and specialty dishes were 37.1% of
consolidated revenues versus 25.1% in 1Q10
- Beef exports grew, reaching 25.4% of total Brazilian beef
exports in March versus 17.3% in February, according to SECEX
(Foreign Trade Secretariat of the Ministry of Development, Industry
and Foreign Trade, Brazil)
- In May 2011, Marfrig issued its
tightest-ever coupon and yield after building a record US$5.0 billion book for its upsized US$750 million 8.375% coupon seven-year bond. The
result lowers Marfrig's average rate of interest on its debt,
helping it build a new tighter debt curve going forward
"Marfrig enjoyed its best-ever first-quarter revenue performance
during what is seasonally the slowest quarter of the year. We
continued to build revenues in a challenging environment around the
world and extending our reach through a local presence in several
countries to achieve synergies among our divisions," said CEO and
founder Marcos Molina. "Our top line
result demonstrates our ability to cope in the toughest conditions.
Our strategy is to ensure we continue to balance the effects of
grain on customer prices, control working capital, improve cash
flow and keep increasing our offer of high-quality products and
specialty dishes."
|
|
IFRS - R$
Million
|
1Q11
|
4Q10
|
1Q10
|
|
Var.
1Q11 x 4Q10
|
Var.
1Q11 x 1Q10
|
|
OPERATIONAL NET
REVENUES
|
5,252.1
|
5,317.8
|
3,195.9
|
|
-1.2%
|
64.3%
|
|
Cost of Goods Sold
|
(4,523.4)
|
(4,466.0)
|
(2,649.6)
|
|
1.3%
|
70.7%
|
|
GROSS INCOME
|
728.8
|
851.8
|
546.3
|
|
-14.4%
|
33.4%
|
|
Gross margin
|
13.9%
|
16.0%
|
17.1%
|
|
-214
bp
|
-322
bp
|
|
SG&A
|
(569.9)
|
(427.0)
|
(335.4)
|
|
33.5%
|
69.9%
|
|
Net income
|
25.2
|
161.1
|
(52.0)
|
|
-84.3%
|
N/A
|
|
EBITDA
|
337.3
|
693.3
|
319.2
|
|
-51.3%
|
5.7%
|
|
EBITDA Margin
|
6.4%
|
13.0%
|
10.0%
|
|
-662
bp
|
-357
bp
|
|
|
|
|
|
|
|
|
|
|
About Marfrig
Marfrig Alimentos SA is a global leader in fresh and processed
foods. Distribution segments include beef products, pork, lamb, and
poultry, as well as other food products. The Group's diversified
operational base includes 150 production units, as well as trading
and distribution in 22 countries and five continents. Considered
one of Brazil's most
internationalized and diversified Brazilian food companies,
the Group exports products to more than 140 countries. Its clients
include the biggest supermarkets and restaurants chains around the
world. Voted the best agribusiness company in Brazil by top business magazine Revista
Exame in 2010, Marfrig is the largest producer of lamb in
South America, the largest meats
company in Argentina, the biggest
poultry producer in the UK and the top private-sector company in
Uruguay.
This presentation may contain statements that are
forward-looking within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Such forward-looking statements are only projections and are not
guarantees of future performance. Investors are cautioned that any
such forward-looking statements are and will be, as the case may
be, subject to many risks, uncertainties and factors relating to
the operations and business environments of Marfrig and its
subsidiaries that may cause the actual results of the companies to
be materially different from any future results expressed or
implied in such forward-looking statements.
This material is published solely for informational purposes
and is not to be construed as a solicitation or an offer to buy or
sell any securities or related financial instruments and should not
be treated as investment advice. This material does not target any
specific investment objectives,. financial situation or particular
needs of any recipient. No representation or guarantee, either
expressed or implied, is provided in relation to the accuracy,
completeness or reliability of the information contained herein.
This material should not be regarded by recipients as a substitute
for the exercise of their own judgment.
Contact:
Marfrig
+011-55-11-3728-8650
ri@marfrig.com.br
SOURCE Marfrig