Marfrig announces profits and stock offer
Brazil-based Marfrig Group is to increase its capital for the purchase of some OSI units. The company closed the second quarter with a profit of US$41.5 million. Its shares have been quoted at US$12.13, up 0.77%.
It will issue 63.9 million new shares for a total of US$856.25 million. However, director of investor relations, Ricardo Florence, said that this was not a public offer, it is just for shareholders.
The acquisition of OSI is expected to be completed before the end of the year. The next step will be the consolidation of its assets, both in Brazil and Europe, and the extension of its industrial units.
Unlike other companies in the beef sector this year, Marfrig's profit margins have not experienced significant reductions from one quarter to the next compared with 2007. Marfrig's net profit grew 152% in the second quarter, while domestic sales increased 70.8% and exports grew 32.2%. Prospects for the next quarter are even better as higher cattle availability and better prices are expected.
According to Mr Florence, the good results are the result of improved efficiency and protein diversification as well as the company's expansion into Uruguay and Argentina. "The combination of all these factors has made it possible for the company to have a performance that in Brazil was a real challenge," he commented.
