Martin Gray Mar 09, 2021
Marfrig Global Foods reported a record net profit of R $ 3.3 billion for 2020, a jump from R $ 218 million the year before, with strong participation in the company’s operations in North America, announced. the company Monday. (8)
Adjusted profit before interest, taxes, depreciation and amortization (EBITDA) in 2020 jumped 99.4% to 9.6 billion reais, with a margin of 14.2%.
The company, the world’s largest burger producer, has consistently recorded net revenues of R $ 67.5 billion, an increase of 35.3 percent from 2019.
Operation North America, in the midst of an extremely positive breeding cycle, accounts for around 72% of Marfrig’s total net income and around 80% of EBITDA.
“The main drivers are a greater availability of fatty cattle … a high demand for meat and we are also benefiting from this because (American) consumers ate a lot more at home than in restaurants,” said the CEO of Marfrig. for North America, Tim Klein.
According to him, there was a portion of cattle in the United States that were not slaughtered in the second quarter of last year, a time when several industries in the sector reduced their ability to contain the spread of the coronavirus.
Now, the wide availability of slaughter animals reduces costs for the company and the scenario is promising for the course of the year – a scenario opposite to that observed in Brazil, where the beef sign has renewed its maximums. .
“We are benefiting from the abundant supply of live cattle, we expect the margins for the quarter to lead to good revenue, good profit,” Klein said of his impressions for the first quarter of 2021.
He said that, for sure, the American breeding cycle will continue to favor the North American exploitation of Marfrig this year, as well as the demand in this country, since the population will count on the contribution of a financial package. promoted by the federal government, for help in dealing with the pandemic.
In year-to-date 2020, Operation North America gross profit reached US $ 1.7 billion, an expansion of 40.8%. The unit’s EBITDA grew by 46.5%, totaling US $ 1.4 billion.
In the fourth quarter of 2020 alone, Marfrig’s net profit was R $ 1.171 billion, about 43 times higher than the performance of the same period in 2019. Adjusted EBITDA increased by 30.3% in comparison annualized, reaching 2.1 billion reais and free operating cash flow increased 165% on an annualized basis, reaching 1.5 billion reais.
In this scenario, the board of directors of Marfrig proposed to the annual general meeting, scheduled for April 8, the distribution of 141 million reais in dividends, 0.20 reais per share – an amount equivalent to 50% of the profit. net distributable to shareholders.
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