MRRTY Marfrig Global Foods SA (PK)

SAO PAULO, May 16, 2011 /PRNewswire/ -- Marfrig Alimentos S.A. (BOVESPA: MRFG3 and NYSE (Level 1 - ADR): MRTTY), a global food company, today reported results for the first quarter ending March 31, 2011.

Marfrig produced its best performance to date for first quarter revenue despite a highly challenging global backdrop after Beef Brazil and Seara drove market share gains in our core Brazil market. Seara synergies, Keystone Foods, Beef Brasil and Europe performances, cost-cutting measures and the ability to offset cost increases partly helped Marfrig balance higher grain prices and the impact of accrued interest on net profit.

Key Financial, Operational and Strategic Highlights

• Net revenue totaled R$5.25 billion, up 64.3% from 1Q10's R$3.20 billion and a 1.2% decrease versus 4Q10's R$5.32 billion, despite seasonal weakness typically seen in the first quarter
• Gross income was R$728.8 million, up 33.4% on 1Q10's R$546.3 million, from R$851.8 million in 4Q10
• Net profit totaled R$25.2 million versus a loss of R$52 million in 1Q10
• Marfrig unveiled two joint-ventures in China with the country's leading food producers
• Value-added products and specialty dishes were 37.1% of consolidated revenues versus 25.1% in 1Q10
• Beef exports grew, reaching 25.4% of total Brazilian beef exports in March versus 17.3% in February, according to SECEX (Foreign Trade Secretariat of the Ministry of Development, Industry and Foreign Trade, Brazil)
• In May 2011, Marfrig issued its tightest-ever coupon and yield after building a record US$5.0 billion book for its upsized US$750 million 8.375% coupon seven-year bond. The result lowers Marfrig's average rate of interest on its debt, helping it build a new tighter debt curve going forward

"Marfrig enjoyed its best-ever first-quarter revenue performance during what is seasonally the slowest quarter of the year. We continued to build revenues in a challenging environment around the world and extending our reach through a local presence in several countries to achieve synergies among our divisions," said CEO and founder Marcos Molina. "Our top line result demonstrates our ability to cope in the toughest conditions. Our strategy is to ensure we continue to balance the effects of grain on customer prices, control working capital, improve cash flow and keep increasing our offer of high-quality products and specialty dishes."

About Marfrig

Marfrig Alimentos SA is a global leader in fresh and processed foods. Distribution segments include beef products, pork, lamb, and poultry, as well as other food products. The Group's diversified operational base includes 150 production units, as well as trading and distribution in 22 countries and five continents. Considered one of Brazil's most internationalized and diversified Brazilian food companies, the Group exports products to more than 140 countries. Its clients include the biggest supermarkets and restaurants chains around the world. Voted the best agribusiness company in Brazil by top business magazine Revista Exame in 2010, Marfrig is the largest producer of lamb in South America, the largest meats company in Argentina, the biggest poultry producer in the UK and the top private-sector company in Uruguay.

This presentation may contain statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are only projections and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Marfrig and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.

This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments and should not be treated as investment advice. This material does not target any specific investment objectives,. financial situation or particular needs of any recipient. No representation or guarantee, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. This material should not be regarded by recipients as a substitute for the exercise of their own judgment.

Contact:

Marfrig

+011-55-11-3728-8650

ri@marfrig.com.br

SOURCE Marfrig