BRF: First Quarter Remarkable, With Revenues and Profit Growth
SAO PAULO, May 13, 2011 /PRNewswire/ -- BRF Brasil Foods S.A. (NYSE: BRFS) ended the first quarter of 2011 reporting a net income of R$ 383 million, a year-on-year increase of 527%, reflecting the operating performance during the period. EBITDA reached R$ 816.4 million on a margin of 13.6%.
Elements contributing to the good operating result in the quarter:
- successful strategy for acquiring inputs against an environment of rising commodity prices
- improvement in the management of the company's costs and expenses
- continuity in the capture of synergies in areas authorized by the Brazilian anti-trust agency
- improved performance in export markets.
Net sales were R$ 6 billion, 19.3% higher than the first quarter 2010. Gross profit reached R$ 1.5 billion.
World demand for proteins contributed to a significant recovery in the export market.
Between January and March of this year, BRF invested a total of R$ 278 million. Funds were dedicated to projects for improvements, replacement and productivity.
Brazilian market conditions during the first quarter in 2011 proved favorable for sales of processed products which reported an increase of 16.8% on improved profitability. The good performance reflects public recognition of the quality of the company's brands.
The Food Service businesses also presented a significant 28.4% growth in sales compared with the same quarter in 2010.
BRF reported a strong first quarter recovery in its international market performance despite a substantial rise in costs and the appreciation of the Real against the US dollar. In addition to robust demand, performance was also driven by progress in the project for reinforcing the company's internal processes.
The gradual recovery in the world economy and the growing importance of emerging powers, has stimulated an increase in protein consumption.
In the Food Service segment, the Global Accounts reported growth in consumption for several markets such as the Middle East and Japan.
SOURCE BRF Brasil Foods S.A.