Marfrig reported a net loss attributed to the controlling shareholder of 112 million reais in the third quarter, reversing a profit of 431 million reais compared to the same period a year earlier, the company reported this Monday.
Earnings before interest, taxes, depreciation and amortization (Ebitda) stood at 2.56 billion reais, down 32.5% year-on-year. Analysts, on average, expected Ebitda of 2.21 billion reais, based on data from LSEG.
Despite the negative net result, the world’s largest hamburger maker’s loss was narrower than its 784 million reais loss in the second quarter, when the company suffered from high costs of purchasing livestock in the United States.
The cash generation indicator measured by Ebitda increased by 11.4% compared to the second quarter.
Marfrig chief financial officer Tang David said the results were “solid”, confirming the company’s strategy of investing in segments with higher value added and lower volatility.
“Marfrig is performing above its peers,” he said, presenting the numbers to reporters.
At the end of October, Marfrig now holds 47.46% of BRF’s capital, after a series of shareholding acquisitions. In August Marfrig sold part of its assets to competitor Minerva, maintaining those with greater added value.
The results of BRF, which reported a net loss of 262 million reais, weighed on Marfrig’s figures in the third quarter.
Tang pointed out that BRF now accounts for a larger share of Marfrig’s EBITDA, at 48% in the third quarter, while North America operations accounted for 28% and South America operations 24%.
In the second quarter, BRF accounted for 43% of Marfrig’s Ebitda and in the third quarter of 2022, 36%.
The managing director of Marfrig’s South America division, Rui Mendonça, said he expects market conditions in China to result in an increase in prices of exported beef, which could have a favorable impact on the company, which has recorded revenues of 11 billion reais on foreign markets. from total net sales of 35.65 billion reais in the third quarter.
Source: Terra
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