Profits for Brazil’s Marfrig more than double in Q3 2021
Marfrig Global Foods has reported a net income of 1.67 billion reais for the third quarter, an increase of 148.7% on the same period last year.
29 October 2021
1 minute read
Reuters reports that the strong results can be linked to good performance in Marfrig’s North American operations.
Marfrig's profit more than doubles in Q3 to R$1.67 billion with North America operation
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) totaled 4.73 billion reais in the period, up 115.6% year-on-year, with 95% of the value due to the North unit's Ebitda -American that made up for adversity in Brazil.
The North America Operation --led by National Beef-- posted new record results, building on the re-opened food service sector and the US government’s financial stimulus for consumers and food producers.
According to the CEO of the North American unit, Tim Klein, the third quarter is historically the strongest for the region. However, 2021’s profits are a downstream benefit from an increase in prices in the US and international markets.
"The industry fundamentals remain in our favor, we have an ample supply of cattle... In the fourth quarter we will have an offer similar to the third. We will not have the same Ebitda margin as the third quarter, but it will remain very strong," he said to journalists.
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Source: Reuters
