BRF Reports 134% Growth in 1st Quarter Profits

SAO PAULO, April 29, 2013 /PRNewswire/ -- BRF ended the first quarter of 2013 with net sales of R$ 7.2 billion, a year-on-year increase of 13.8%. Net income rose by 134% to R$ 359 million.

Adjusted EBITDA reached R$ 852.5 million corresponding to a growth of 60.2% and equivalent to 11.8% of the Company's net sales.

Gross profit totaled R$ 1.7 billion, an increase of 26.3% and reflecting the efficient management of the cost-price ratio and control of expenses.

Results were positive for all balance sheet items confirming the Company's expectations as to an improvement in outlook, set against a scenario of a more balanced market and appropriate corporate strategies.

BRF invested R$ 516 million in Capex between January and March. Resources were directed to projects involving growth, efficiency and support as well as investments in biological assets.

DOMESTIC MARKET – Domestic market sales reached R$ 3.1 billion, an increase of 4.2% compared with the 1st quarter of 2012.

EXPORTS – Exports in 1T13 amounted to R$ 3.1 billion, 31% up on the first quarter in 2012.

Certain factors affected the international market in the period. These include logistics and port infrastructure problems due to above average rainfall in the South and bottlenecks at the port of Santos in the light of the high volume of grain exports.

DAIRY PRODUCTS – In the dairy products segment, sales revenue amounted to R$ 647.6 million, the result of the successful strategy for improving returns from the business through the increased value added mix and reduced dependence on UHT milks. The operating result for the segment was R$ 28.8 million on an operating margin of 4.4%.

FOOD SERVICES – In spite of the adverse economic climate, the area focused on improving the level of service to transformers, presenting growth of 3.5% in revenues in relation to the preceding year and reaching R$ 365 million. The highlight for the segment was a recovery in returns, recording a gain of 3 percentage points to 14% in operating margin.

CAPITAL MARKETS – BRF's shares reported an appreciation of 5.7% for 2013 to date on the Sao Paulo Stock Exchange. The Company's ADRs trading on the New York Stock Exchange also recorded an increase of 4.7% in the same period.

R$ million 


1Q13

1Q12

Change %

Net Sales

7,209

6,337

14

Domestic Market

4,069

3,916

4

Exports

3,139

2,421

30

Gross Profit

1,697

1,343

26

Gross Margin

23.5%

21.2%

2.3 p.p

EBIT 

531

268

98

Net Income

359

153

134

Net Margin

5.0%

2.4%

2.6 p.p.

EBITDA

804

506

59

EBITDA Margin

11.1%

8.0%

3.1 p.p.

Adjusted EBITDA 

853

532

60

Adjusted EBITDA

11.8%

8.4%

3.4 p.p.

Margin

EPS* 

0.41

0.18

128

(*)Consolidated earnings per share (in R$), excluding treasury shares.

    

SOURCE BRF



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