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BRF Profit Grows by 70 per cent

by 5m Editor
18 September 2009, at 11:09am

BRAZIL - Brasil Foods (BRF; new corporate name of Perdigão and Sadia) ended the second quarter of 2009 with net income of 129 million real (BRR), 70 per cent up on the same quarter last year, despite adverse conditions for exports.

The recovery of major international markets, although slow, and the performance of the domestic market contributed to a slight improvement in operating margins in the period compared to the first quarter of the year.

However, the company said that the sudden appreciation of the real against the US dollar had squeezed the operating result.

Revenue from foreign sales grew by five per cent during the first quarter, the market was highlighted by the activity of milk with increased demand for liquid milk.

Gross revenue reached BRR 3.1 billion in the second quarter, four per cent less than the same period last year, and gross profit was BRR 593 million, down by five per cent.

In the first half of 2009 gross revenue was US$ 6.16 billion, representing an increase of one per cent, driven by growth of two per cent in the internal market, which was $3.8 billion.

Sales in foreign markets remained stable compared to the first half of 2008.

The lower demand in the flow of exports – which led to high production costs and selling expenses – squeeze margins for BRF. Other factors that contributed to this situation were the sharp fall in domestic price and redirection of products onto the domestic market.