Marfrig, the world’s second largest producer of beef, this Monday recorded a net loss of 784 million reais in the second quarter, compared to a profit of 4.255 billion reais in the same period last year, in a difficult moment for the supply of beef, especially in the United States.
The company’s loss with operations in the United States, Brazil, Uruguay, Argentina and Chile was expanded from the 634 million reais it posted in the first three months of this year.
According to Marfrig CFO Tang David, despite the negative net result, the company has demonstrated the strength of its operations, with better margins than its competitors.
Marfrig’s Ebitda margin was 5.2% in North American operations and 10% in South America.
“Faced with all the challenges, Marfrig outnumbered his peers,” David told reporters.
Cash generation measured by Ebitda amounted to 2.3 billion reais, down 42.3% on an annual basis, but up 53.5% compared to the first quarter.
The food company BRF, whose main shareholder is Marfrig, contributed approximately 1 billion reais to Ebitda for the quarter.
Marfrig’s net revenues were 32.5 billion reais in the second quarter, down from 34.5 billion reais in the same period last year, but up from 31.76 billion reais in the first quarter of this year. ‘year.
CAPITAL INCREASE
In a separate statement, Marfrig announced that the board of directors has approved a private capital increase to issue up to 300 million ordinary shares, at a price of 7.21 reais.
The operation should rise to 2.16 billion reais, with the entire amount of the capital increase intended for the company, to support the investment plan.
The capital increase follows a share issue by BRF. On that occasion, the commitment of Marfrig’s controlling shareholder to carry out a capital increase of 1.5 billion reais was announced.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
