Marfrig reports Q3 net loss

Brazilian beef producer Marfrig has posted a net loss of R$540m (US$308.61m) for the third quarter of fiscal 2011, compared with a loss of R$68.6m (US$39.20m) year-on-year.

The company argues that the loss is due to the non-cash effect of depreciation of the Brazilian Real against the US dollar in the quarter.

EBITDA for the quarter was R$637.5 (US$364.33m), a rise of 169.3% compared with R$236.7m (US$135.27m) in the previous year.

Consolidated net operating revenue grew by 45.1% to R$5.52bn (US$3.15m) from last year’s R$3.81bn (US$2.17m), due to higher capacity utilisation at its plants, improved product mix and higher prices.

Consolidated gross income rose 34.4% to R$813m (US$464.63m), from R$605m (US$345.76m) year-on-year.

Europe accounted for highest share of exports (44.2%), followed by Asia (19.4%) and the Middle East (15.6%).

Marfrig CEO and chairman Marcos Antonio Molina dos Santos said the company improved its operational efficiency, with the capture of synergies among the business divisions, reduced costs and expenses, and generated R$310.5m (US$177.45m) in operating cash flow, versus R$109.4m in 2010.

"Despite the uncertainties in the global economic scenario throughout the quarter, we recorded robust net revenue growth of 45.1% over Q3 2010 and of 3.8% over the previous quarter," Santos said.