Record net income assured by strategy of diversification across animal proteins and geographic regions
SAO PAULO, March 31 -- Marfrig Alimentos S.A. reported record net income in fiscal year 2009 of R$ 679.1 million, reversing the net loss of R$ 35.5 million recorded in 2008.
Gross revenue in the year was R$ 10.28 billion, up 52% from 2008. The chart below shows the growth in Marfrig's Gross Revenue from 2005 to 2009.
In an economic scenario marked by changes in consumption habits, limited financial resources and foreign exchange volatility, Marfrig's risk-dispersion strategy, which was adopted at the company's founding, once again proved well chosen - this time due to strong efforts in the domestic markets of the 13 countries where the company operates industrial facilities. Sales volume in these local markets accounted for 71.3% of the Group's total sales volume and 63.9% of its total gross revenue.
In 2009, Marfrig sold 2.2 million tons of food in more than 100 countries, for growth in sales volume of 47.6% on the prior year. A portion of this advance was due to the full consolidation of the results of companies acquired in the second half of 2008, the increase in installed capacity utilization, the leasing of plants and the startup in Brazil of lamb and turkey operations.
Main Financial Indicators in 2009, R$ million
2009 2008 % Change
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Gross Revenue 10,279.2 6,775.2 51.7%
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Domestic Market 6,571.5 3,838.5 71.2%
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Export Market 3,707.7 2,936.7 26.3%
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Net Revenue 9,615.7 6,203.8 55.0%
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Gross Income 1,381.4 1,327.0 4.1%
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Operating Income 568.5 (236.5) -
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Net Income 679.1 (35.5) -
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Net Margin 7.1% -0.6% -
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Earnings per share (R$) 1.9571 (0.1325) -
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EBITDA(1) 819.5 884.4 -7.3%
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EBITDA Margin 8.5% 14.3% -
(1) EBITDA = Earnings before interest, taxes, depreciation and
amortization
Capital Expenditure
Over the last three years, Marfrig has invested approximately R$ 5 billion to acquire 37 companies in Brazil and abroad. Today, the Group has operations in 13 countries, with a total of 92 industrial units and offices.
In 2009, Marfrig carried out and announced various investments, such as the implementation of lamb operations in Brazil, the acquisition of the turkey assets in Brazil of Doux Frangosul S.A., the capacity expansion at the Diamantino Agroindustrial Complex in Mato Gross state (accompanied by the installation of the country's largest and most modern hog waste treatment system), the leasing of the units from Margen S.A. and Mercosul S.A. and the acquisitions of Seara Alimentos Ltda. and Grupo Zenda.
Main Financial Indicators in 4Q09, R$ million
4Q09 3Q09 Change %
---- ----
4Q09 vs.
3Q09
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Gross Revenue 2,723.6 2,537.7 7.3%
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Domestic Market 1,812.3 1,617.6 12.0%
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Export Market 911.3 920.1 -1.0%
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Net Revenue 2,558.3 2,402.6 6.5%
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Gross Income 376.0 367.8 2.2%
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Operating Income (118.6) 274.9 N/A
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Net Income 111.7 200.5 -44.3%
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Net Margin 4.4% 8.3% -
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Earnings per share (R$) 0.3219 0.7483 -57.0%
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EBITDA 200.0 272.5 -26.6%
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EBITDA Margin 7.8% 11.3% -
(1) EBITDA = Earnings before interest, taxes, depreciation and
amortization
Corporate Governance
Marfrig Alimentos S.A. is listed on the Novo Mercado special corporate governance segment of the Bovespa Stock exchange and is committed to the highest international standards of corporate governance. For more information on the company's performance, go to the investor relations area of Marfrig's website at www.marfrig.com.br/ir.
Source: Marfrig Alimentos S.A.