Brazil’s Food Company Marfrig is Out of the Red

Brazil's Marfrig Marfrig Alimentos, a Brazilian operating in the food sector, which has strong interests in neighboring countries Uruguay and Argentina, turned a profit in the third quarter of this year compared to a year ago, as new acquisitions boosted its capacity.

Marfrig Alimentos reported on Monday net income of 200.5 million reais (115.6 million US dollars) in the third quarter, compared with a net loss of 52.69 million reais a year ago.

Earnings before interest, tax, depreciation and amortization, a measure of cash flow and operational profitability known as EBITDA, rose 59% to 272.53 million reais from 171.45 million reais in the same quarter of 2008, the company said in a regulatory filing.

Poultry production jumped 131% in the third quarter of this year from one year ago, while beef production rose 14.5% and pork production gained 15.4%. Results were helped by recent acquisitions, the company said in a statement.

The company is one of the world's largest beef producers and has made about 40 acquisitions in the past three years. Most recently, it bought indebted Brazilian poultry export company Seara from US commodities company Cargill Inc in September for roughly US$ 900 million.

In the same month, it announced deals to buy a 51% stake in Uruguay-based leather producer Zenda and to lease 12 plants owned by Brazilian meat rivals.

Mercopress

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