Marfrig reported a net profit of R$ 79 million for the third quarter of 2024, recovering from a loss of R$ 112 million in the same period last year, according to the financial results released on November 13.
As a result of this performance, the company announced an interim dividend distribution of R$ 2.5 billion to shareholders, corresponding to R$ 2.824256 per common share. The payment will be made on December 26.
For the third quarter, Marfrig’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached R$ 3.87 billion, reflecting a 60.4% increase compared to Q3 2023. The company’s net revenue grew 12.4% to R$ 37.7 billion.
“These positive operational results reinforce our strategy of geographical diversification and a focus on higher value-added products,” said Tang David, Marfrig’s Vice President of Finance and Investor Relations.
North America Operations
In the North American operation, the company reported net revenue of US$ 3.2 billion, a 3.9% decline year-on-year, primarily due to a lower supply of beef cattle in the market as a result of the livestock cycle, as well as one fewer week in the quarter. However, despite the lower cattle availability, Marfrig managed to offset this with higher average selling prices. The adjusted EBITDA for the unit dropped 47.1%, totaling US$ 79 million.
“Demand for beef in the U.S. remains strong, and thanks to our operational resilience, we’ve been able to perform consistently above the industry average despite the downturn in the cattle cycle,” said Tim Klein, CEO of Marfrig’s North America operations.
Regarding the impact of Donald Trump’s potential re-election, Klein noted that during Trump’s previous term, there was no negative impact on exports, and the new administration is very business-friendly. “We’ll see what happens and adjust accordingly,” he added.
South America Operations
In South America, the Marfrig operation across Brazil, Uruguay, and Argentina generated R$ 4.3 billion in net revenue, a 28.9% increase from the same period in 2023. Sales volume increased by 22%, driven by the expansion of industrial complexes and higher utilization rates.
“From January to September, we achieved 30 new market authorizations in the region, which helped diversify markets and allowed our operations to export to higher-priced destinations like the U.S. and Mexico,” said Rui Mendonça, CEO of Marfrig’s South America operations.
Mendonça also pointed out that in October, prices paid by China for Brazilian beef increased by 10%, while other more attractive export markets remain available. “We have the option to direct exports to better markets,” he said.
Regarding the domestic market, Mendonça observed that cattle prices in Brazil have increased, signaling the start of a new cattle cycle and the impact of drought on pasture conditions. He added that the local population has absorbed the current price levels, with no concerns regarding demand.
Asset Sales and Debt Reduction
Marfrig completed the sale of 13 assets in Brazil, Argentina, and Chile to Minerva at the end of October, generating R$ 5.7 billion. Combined with the R$ 1.5 billion received when the contract was signed, the total proceeds amounted to over R$ 7.2 billion.
According to Marfrig, these funds are being used to reduce leverage, lower debt levels, and cover financial expenses.
