Agrosuper projects its revenues for 2023 in a scenario with tighter margins
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Agrosuper realized that the high levels of inflation in the world, higher prices of raw materials, adjustments in logistics chains and the conflict between Russia and Ukraine, have had an impact on the business and will continue to do so in the short term.

In recent months, the company linked to the Vial family has also seen adjustments in the prices of the products it sells, since in the meat segment the values ​​have been impacted downwards by the normalization of pork production in Asia. In addition, a contraction in international chicken prices has begun to be seen.

In the company, however, there is optimism. The reasoned analysis corresponding to the results of the third quarter reads: “Although in the short term, this situation is projected to continue, towards the medium term it is expected that the margins converge towards historical levels”.

The aquaculture segment seems to be living in calmer times, since there has been a high demand in the most important markets such as the United States, Brazil and Japan, generating prices above historical averages, which should be maintained in this last part of the year.

According to what was reported by the company, revenues reached US$1,075 million in the third quarter of the year, with a growth of 6.9% compared to the same period in 2021.

Meanwhile, the company reported in its last line losses for an amount of US$ 29.5 million, in contrast to profits of US$ 131 million recorded between July and September 2021.

With this, the consolidated Ebitda, pre fair value, reached US$ 557.9 million between January and September, which is equivalent to a decrease of 5.8% versus the same period in 2021, resulting in a margin of 17.7%. , a figure less than 20% to that obtained in 2021. “The above is mainly explained by an increase in the cost of raw materials,” explained the firm.

The lower margin was one of the main topics that analysts consulted in the company’s earnings conference call. The Administration and Finance Manager, Felipe Fuenzalida; the Development Manager, Juan Manuel Ovalle, and the Finance Manager, Vasco Grigolo, told those present that “basically, it is a question of costs.”

They indicated that if a review of each business is carried out separately, it is observed that the volumes remain constant. “However, in the case of chicken, for example, prices are expected to drop and we also have cereal costs that are still very high. So it’s something we think we’re going to tackle over the next year.”

What figures do you expect next year? According to what was indicated by the executives, revenues of US$3,000 million are anticipated for the meat segment, with an Ebitda margin of between 10% and 12%, while sales of close to US$1,500 million are expected for the aquaculture business. , with an Ebitda margin between 18% and 20%.

In the third quarter, revenues from the meat and aquaculture businesses reached amounts of US$2,000 million and US$1,100 million, respectively.

inflation effect

The rise in inflation in Chile, which is about to end the year in double digits, was also an issue for the company in the delivery of its quarterly figures.

The firm indicated that “a decrease in the purchasing power of people has been generated, impacting the demand for some products produced and/or marketed by the company”, adding that the eating habits of consumers could be affected, “who they could prefer other foods and/or partially replace the consumption of proteins”.

“To mitigate the deterioration of global or local economic conditions, the company has a significant investment in the creation of strong brands and a high quality of its products, allowing it to generate loyalty among its customers and minimize possible variations in demand. Additionally, it has a broad portfolio of products (highlighting products such as chicken -in its various presentations and cuts- that are “countercyclical”), allowing compensation between them in the face of changes in income and consumption habits,” he said.

In addition, the company highlighted the diversification of the markets in which it is present, which allows it to cover practically 4,200 million people who represent more than 85% of the global GDP. “The company has a high degree of flexibility to alternate markets in the event of significant changes in one of them,” he pointed out.

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