Brazil meatpacker Marfrig swings to loss on shrinking North American demand
7:07 pm Wednesday, March 01st, 2023
SAO PAULO (Reuters) -Brazilian meatpacker Marfrig Global Foods SA on Wednesday posted a fourth-quarter net loss of 628 million reais ($121 million), falling below estimates of a net profit for the quarter, dragged by deteriorating earnings from North America.
Analysts polled by Reuters had estimated a net profit of 458 million reais for the last three months of 2022, down from a profit of 650 million reais a year earlier.
Its North American unit saw weaker margins caused by lower demand in this region and lower seasonal cattle numbers amid higher interest rates, the company’s regional head Tim Klein told journalists.
The company, which holds a stake in poultry processor BRF, reported adjusted earnings before taxes, interest, depreciation and amortization (EBITDA) down 47% to 2.22 billion reais.
Rui Mendonca, the company’s top executive for South American operations, said Marfrig expects the Brazilian and Chinese governments to discuss the end of an embargo on Brazilian meat exports during a meeting in March.
Exports to China were halted earlier in February after Brazilian health authorities confirmed a case of “atypical” mad cow disease.
Mendonca said Marfrig expects a market opportunities in China for other beef-related products such as giblets and meat with bones, adding trade talks with Indonesia are also taking place.
($1 = 5.1919 reais)
(Reporting by Nayara Figueiredo; Writing by Carolina Pulice; Editing by Sarah Morland and Lincoln Feast.)
