BRAZIL - One of the world's largest poultry and pork exporters, Brazilian firm BRF, has reported a growth in net revenue of 12.8 per cent in the second quarter of 2015.
BRF's net operating revenue (NOR) of BRF reached R$7.9 billion (Brazilian Real) in the second quarter of the year, and in the same period, EBITDA increased 43.6 per cent to R$1.4 billion.
Simplified cash flow in the last 12 months was R$3.7 billion.
In Brazil, net revenue from processed products grew 15.2 per cent from the same period in 2014. Despite the adverse macroeconomic scenario in Brazil, the domestic market registered a 9.4 per cent growth in the volume of processed foods compared to the previous year.
“I am very pleased to announce what we believe are positive and solid results, both for our business in Brazil and, especially, in the global markets,” stated Pedro Faria, global CEO of BRF.
EBITDA margin on the overall results came to 17.4 per cent, up 3.7 percentage points in the period. Gross margin stood at 31.9 per cent, compared to 27.1 per cent in the same period in 2014 and 30.7 per cent the previous quarter.
Return on invested capital (ROIC) in the last 12 months reached 13.3 per cent, compared to 7.9 per cent in the second quarter of 2014.
Business performance in the international market, especially the Middle East, deserves special mention, which benefited from the structural changes implemented last year and from the favourable cycle.
Poultry volumes grew 7.6 per cent from the year-ago period and, accompanied by higher prices, led to a 42 per cent growth in revenues from the segment. In the Middle East and Africa, EBIT margin reached 18.3 per cent.
Overall net debt in the second quarter was R$5.9 billion, down 4.5 per cent from the balance on March 31, 2015, which resulted in a net debt to EBITDA (12 months) ratio of 1.12 times, compared to 1.26 times in the previous quarter. Another highlight was the €500 million issue of green bonds, the first by a Brazilian company.
Return of Perdigão
The second half of 2015 marks an important moment - the return of the main Perdigão products, which had been suspended for the past three years. Henceforth, BRF will be able to operate at full capacity, with a comprehensive portfolio of brands in Brazil.ThePoultrySite News Desk
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