Marfrig posts $43.5 million net loss in first quarter
Despite company’s gains in net revenues, debt-servicing costs contribute to losses
Brazilian meat, poultry and food processor Marfrig reported a first-quarter net loss of BRL96.4 million (US$43.5 million), citing an increase in its debt-servicing costs. The loss for the first quarter compares to a net loss of BRL59.6 million (US$26.9 million) posted in the first quarter of 2013.
Marfrig's debt-servicing costs totaled BRL387.8 million (US$175 million) in the first quarter, which is up from the BRL296.1 million (US$133.6 million) in costs in the same period of 2013. Its total debt in the first quarter amounted to BRL9.25 billion (US$4.2 billion), comparing to BRL13 billion (US$5.9 billion) in debt during the first quarter of 2013.
The company saw some positive financial news during the quarter, with net revenues increasing 9.4 percent to BRL4.78 billion (US$2.16 billion) in the first quarter. Two of its business units saw significant improvements in net revenues. Moy Park, Marfrig’s food and poultry processor based in the UK, saw a 27 percent increase in net revenues. Keystone Foods, Marfrig’s meat, poultry and food company headquartered in the United States, had a 15 percent increase in net revenues. Marfrig Beef’s net revenues declined 2 percent.