Brazilian meat producer Marfrig made a net loss in the second quarter on the back of a weak US dollar and high grain and livestock prices.
For the six months to the end of June, the company made a net loss of BRL91m (US$56.4m) compared to a net profit of BRL103.8m last year. Marfrig also widened its operating loss to BRL129.3m from BRL122.8m in the quarter, the company said today (15 August).
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EBITDA however, climbed 9.7% to BRL277.8m. Sales in the period soared 49.6% to BRL5.32bn, of which 19.5% was primarily organic growth originating from an improvement in capacity utilisation at its operations in Brazil, Europe and its Seara subsidiary.
“The second quarter continued to pose the challenging environment seen since early 2011, with a weaker US dollar and high grain and livestock prices set against the backdrop of the financial scenario in Europe and the United States,” said chairman and CEO Marcos Antonio Molina dos Santos.
He added: “While we expect the current volatile operating environment to continue into the second half of the year, we also expect to benefit from our financial and operational discipline in order to meet our goals of achieving growing and sustainable margins and creating value for our shareholders.”
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