Marfrig achieves target revenue in 2014

In its fourth quarter and full-year results for 2014, announced today (2 March), the company announced it had met the lower threshold of its revenue target of R$21-23bn, with adjusted EBITDA achieving a margin of 8.5%.

Consolidated net revenue in the fourth quarter increased by 19% to R$5.9bn, compared to the same period in 2013. Its Moy Park business grew net revenue by 13%, Keystone by 21% and Marfrig by 22%.

"Marfrig Beef maintained its good export performance, Moy Park increased its sales, especially in the retail channel in the United Kingdom and Ireland, and Keystone recorded strong sales volume growth in the APMEA region,"​ said the firm.

Adjusted EBITDA for Q4 was up 30% to R$548m, with a +24% achieved by Moy Park, +46% by Keystone and +26% by Marfrig, putting its overall margin at 9.2% - a record figure, it said.

Moy Park saw a 13% increase in net revenue to R$1.5bn between Q3 2014 and Q4 2014. The increase was positively impacted by currency exchange rates, and strong sales volume increases of fresh poultry and convenience coated products across the retail and foodservice channels in the UK and Ireland, said Marfrig.

However challenges were seen in the form of lower sales prices for poultry products and offals exports due to export restrictions in both Russia and South Africa, as well as lower foodservice volumes in its European business.

The business saw total volumes of fresh meat up 6.2% in the fourth quarter of 2014 compared to 2013, with processed products up 1.4%. Exports volumes fell 6%, while domestic volumes increased 6.4%. Total volumes overall were up 3.7%.

Total sales revenue increased 12.9% - with sales up 16.5% in the domestic market, but down 9.7% in terms of exports, driven by falling sales in processed products.

Keystone saw a 21% in net revenue to R$1.67bn, driven in part by strong double digit growth in China. Gross income stood at R$139m for the quarter, while adjusted EBITDA came in at R$140m.

Revenue for Keystone USA increased 16.6% from Q4 of 2013 to Q4 of 2014, and 32.1% for Keystone Asia. Volumes increased by 4.1% and 24.2%, respectively.

Marfrig saw net revenues up 22%, to R$2.74bn, while adjusted EBITDA stood at R$284m - up 26%. Increases in revenue were primarily down to the group’s stronger export figures, with revenue growth of 21% in exports from Brazil, and a 55% increase in exports from its international operations.

The business also increased sales on the domestic front, with net revenues up 16% to R$1.1bn, thanks to a 31% increase in sales volumes. Net revenue from Marfrig’s exports was R$955m - up 21%, on the comparable period last year.

The business is looking to gradually expand its exports, taking advantage of the strong international demand for Brazilian beef, it said. Adding that demand from Russia fell significantly during Q4 due to the country’s loss of purchasing power. Russia’s share of exports fell from 12% in Q3 to 8% in Q4, however surplus volumes were directed to other countries in the Middle East and Europe.

Marfrig Beef - Brazil saw total revenue up 18.1% on the same period last year, while its international operations saw revenue up 37.5%. In terms of volumes, Marfrig Beef - Brazil saw an rise of 22.5%, while its international businesses saw volumes up 32.2%.