With a drop of 8.26% around 1 pm this Wednesday (4), at R$ 16.67, Marfrig’s shares (MRFG3) reflect the release of the balance sheet for the first quarter of 2022 announced yesterday.
The results of the company, one of the largest beef in the world, indicated a profit of R$ 109 million – which represents a drop of 61% compared to the same period of the previous year.
Understand what led to this fall in profits and whether it is worth investing in Marfrig’s shares, according to experts interviewed by the UOL.
The drop in Marfrig’s profit (MRFG3) is a reflection of the R$ 795 million invested in the consolidation of the 33.27% stake in BRF (BRFS3).
Marfrig’s total net revenue grew 30% to R$22.3 billion. The company said it benefited from the heated demand in the United States, with revenue up 35%, totaling R$ 15.9 billion.
Bank BTG says that the balance for the first quarter, after all, was neutral. This is because earnings before interest, taxes, depreciation and amortization (EBITDA) of R$2.7 billion were 69% higher compared to the same period in 2021, a total 8% above the bank’s estimate.
Net debt ended the quarter at R$21.9 billion, a “surprisingly low” level, according to BTG.
Is the fall in Marfrig’s profit a reason to sell the share?
Not. “What really catches on is the scenario ahead”, according to Marcio Loréga, an analyst at PagBank.
“With the lockdown in China, the war that changes the flow of exports around the world and the merger with BRF, the market thinks that all this can squeeze Marfrig’s profit margins”, he says.
What to do with stocks?
BTG’s recommendation in relation to the share is neutral — that is, if the investor already has shares of the company, it is better to keep them, but without making new investments. For those who don’t have it yet, it’s not the time to acquire the papers.
“We remain neutral based on our belief that (profit) margin normalization will result in a less compelling story ahead,” the bank states in a report.
For BTG, with the exchange rate now back around R$5, Marfrig may have some increase in net debt, which reduces the company’s profit margins.
But for Mirae Asset, the recommendation is still to buy the stock. In the broker’s view, the operating result was good and, therefore, an appreciation of the company is estimated. Therefore, Mirae’s target price is BRL 30.64 for the share.