Marfrig’s net revenue totalled R$13.5 billion (US$2.34 billion) in the first quarter of the year, up 26.6% on the same quarter of 2019. The company has attributed the increase mainly to the 65% expansion in exports from the South America Operation exports (comprising of Brazil, Argentina, Uruguay and Chile) and the performance of the North America Operation, represented by National Beef. Adjusted EBITDA amounted to R$1.2 billion (US$208.48 million), representing a 109% growth year-on-year. Adjusted EBITDA margin stood at 9.1%, up from 5.5% in the first quarter of 2019, and net income totalled R$32 million (US$5.6 million).

Gross income for Marfrig’s North America Operation amounted to US$229 million in the first quarter of 2020, up 29.1% compared with the same quarter in 2019, while gross margin expanded to 10.5% from the 8.7% recorded a year ago. Adjusted EBITDA also set a new record, of US$175 million, with record margin of 8%. The South America Operation is reported to have delivered record high operational results, with net revenue of R$3.8 billion (US$660 million), up 26.1% year-on-year, led by a 35% increase in exports; the majority of exports shipped to China and Hong Kong. “Marfrig is the company with most plants authorised to export to China and that played a big role,” said Miguel Gularte, CEO, Marfrig South America. “Another important factor is our long-term relationships based on trust with our clients in these markets. When the coronavirus crisis began to abate in China, we benefitted.” Exports currently account for 60% of the operation’s total revenue, compared with 45% in the first quarter of 2019.