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Brasil Foods' Income Soars in Third Quarter

by 5m Editor
1 November 2011, at 10:48am

BRAZIL - BRF Brasil Foods closed the third quarter with net sales of 6.3 billion real (BRR), 10.4 per cent more than reported for the same period in 2010.

Gross profits improved 13.5 per cent to BRR1.6 billion.

EBITDA reached BRR722.5 million, equivalent to a margin of 11.5 per cent, while net income amounted to BRR365 million, an increase of 73 per cent.

The Company’s good earnings were driven by operating performance, particularly the meats business, combined with the capture of synergies.

This was achieved despite the challenging foreign exchange scenario and the high cost of the main raw materials, both of which contributed to a squeeze on the quarter’s margins.

Domestic market sales revenue reported growth in relation to meats (18.5 per cent) as well as dairy products (8.2 per cent), surpassing the BRR3.8 billion mark, an increase of 14 per cent.

The highlight in the period was in processed meat products (industrialised and frozen), which contributed with an increase in sales of about 24 per cent.

Revenues from exports came to BRR2.5 billion, six per cent higher than in the third quarter of 2010.

The performance registered on the Far Eastern, European, Middle Eastern and American markets offset the losses arising from the ban on the Russian market.

The exchange rate affected the competitiveness of the company´s products sold on the international market for most of the quarter.

BRF’s investments totalled BRR252.6 million. Of the total, more than 61.4 per cent was dedicated to projects for productivity, improvements and automation, while 32.6 per cent went to new projects.

In the first nine months of 2011, BRF registered net sales of BRR18.6 billion, 14 per cent better than the comparative period in 2010. Gross sales totalled BRR4.7 billion in the period – equivalent to growth of 21 per cent.

Net income between January and September was BRR1.2 billion, a 180 per cent year-on-year improvement and a reflection of the recovery in export markets in the two initial quarters of the year together with the most satisfactory level of domestic business.

EBITDA of BRR2.3 billion represented an increase of 39 per cent, with a margin of 12.5 per cent.