Marfrig’s net losses narrow in first quarter
Keystone Foods accounted for 50 percent of company’s net revenue during quarter
Brazil-based meat processor Marfrig, parent company of U.S. poultry company Keystone Foods, reported a net loss of BRL106 million (US$30.6 million), improving from the loss of BRL571 million (US$164.6 million) the company reported during the first quarter of the previous year.
The company on May 12 released the quarterly financial report for the quarter ending March 31.
Meanwhile, Marfrig’s net revenue of BRL4.9 million during the first quarter of fiscal year 2016 was a 16.1 percent increase when compared to the first quarter of the previous year.
Keystone Foods’ net revenue for the quarter was US$623 million, which was down 5.7 percent from the same quarter of 2015. The decrease was partially attributed to lower meat and feed costs, which translated into lower sales prices. The company also reported a sales volume decrease in the Asia Pacific/Middle East/Africa region, but that decrease was partially offset by 22.6 percent growth in key accounts in the United States.
Marfrig strategy for future
Marfrig, in a statement, said the company’s strategy remains focused on capturing potential growth in the global protein industry and on maximizing value creation and returns for sharedholders with a commitment to strengthen its business through organic growth, operational improvements, adjustment of the Marfrig beef business by prioritizing food service channels and growing exports, and accelerating growth in the Asian market by expanding Keystone’s operations in the food service channel.