Marfrig Announces Net Income Surges in the Second Quarter and Year-to-Date Gross Revenue Surpasses R$7.2 Billion

SAO PAULO, Aug. 16 /PRNewswire-FirstCall/ -- Marfrig recorded net income of R$127.4 million in the second quarter, which was 206% higher than the R$41.7 million posted in the previous quarter. Net income in the first six months of the year was R$170 million.  

Driven by stronger sales in the Brazil operations, Marfrig's gross revenue reached R$3.8 billion in the second quarter, up 10% on the amount registered in the prior quarter. In the year to date, gross revenue was R$7.2 billion, 43% higher than in the same six-month period of 2009.

The EBITDA margin of 8% in the period reflected Marfrig's solid operational performance, which was supported by marketing investments, especially in the global brand Seara.

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The second quarter also registered important events for the Marfrig Group and global food markets, such as the conclusion of the company's successful US$500 million international bond issue and the Seara brand's unique sponsorship of the FIFA World Cup in South Africa.

The most important fact in the period was the announcement of the acquisition of the U.S. multinational Keystone Foods, which is one of the world's largest food companies, with over 28,000 restaurants and 54 operational units in the United States, New Zealand and Australia and countries in Europe, Asia and the Middle East. After consolidating this business, the Marfrig Group will have 151 units in 22 countries, with 85,000 employees.

Capital Expenditure

Marfrig invested R$95.5 million in the quarter in the construction, maintenance, modernization and expansion of its plants. Cash flow from investment activities totaled R$188.9 million in the quarter, while capital expenditure, including investments in breeding stocks, came to R$ 137.4 million. Excluding the investments in breeding stocks, capital expenditure in the year was R$205.5 million.

Stock Performance

On May 1, 2010, Marfrig stock was included in the IVBX-2 (Bovespa Value Index), which is composed of the 50 most-liquid stocks traded on the exchange in the last 12 months, excluding the 10 stocks with the highest liquidity or market capitalization.

Marfrig stock ended 2Q10 quoted at R$ 16.88, for a year-to-date gain of 11.7%, which compares with the increase of 11.2% in the Brazil Index (Ibovespa) in the same period. Since January 2009, Marfrig stock has registered a cumulative gain of 125.1%, compared with 62.3% for the Ibovespa. The following chart presents a comparison of the performances of Marfrig stock and the Ibovespa in the period from January 1, 2009, to June 30, 2010.

The liquidity of Marfrig stock continued to increase, with higher financial trading volume and a higher number of trades in the period. In 2Q10, average daily financial trading volume was R$ 32.9 million, versus R$ 9.8 million in the same period last year.

In addition to the higher stock liquidity, Marfrig also registered an increase in the number of shareholders, especially individual investors, which increased from 1,000 in June 2009 to 5,500 in June 2010.

Awards

In April 2010, Marfrig received 3 IR Global Rankings (IRGR) Awards: Best Investor Relations Website in the Consumer Goods Industry Worldwide, Top 5 Financial Disclosure in Latin America and Top 5 Investor Relations Website in Latin America. In addition, for the second straight year, the IR Magazine Awards selected Marfrig for the Top 5 in the category Best IR Professional in the market.

Recently, the special annual biggest and best edition of Exame magazine ("Melhores & Maiores Exame 2010") published by Editora Abril selected the Marfrig Group as the Best Agribusiness Company and Best Beef Company. In addition, Isto E Dinheiro, the business magazine published by Editora Tres, recognized the Marfrig Group as the Best Company in the Management of Financial Sustainability at the event "As Melhores da Dinheiro 2010".

For more information on Marfrig's performance, go to the investor relations area of the company's website www.marfrig.com.br.

SOURCE Marfrig Alimentos S.A.