BRF Reports Second Quarter Sales of R$ 6.3 Billion 1H10 Net Income Reaches R$184 Million
SAO PAULO, Aug. 13 /PRNewswire-FirstCall/ -- BRF - Brasil Foods (NYSE: BRFS; BM&FBOVESPA: BRFS3) closed the second quarter 2010 with a gross profit of R$ 1.5 billion, 23% greater than for the same period in 2009 on a pro-forma basis. Gross sales totaled R$ 6.3 billion, 4.3% higher, reflecting the good performance recorded in the domestic market and improvement in important international markets such as Asia and Eurasia.
Cash generation in terms of EBITDA reached R$ 587 million, 54% up on the same quarter 2009. This good performance was a reflection of cost savings and reduced operating expenses resulting in a margin of 10.6%, the best registered by the company since 2009 – confirmation of the gradual and consistent recovery seen over the past few months.
Domestic market sales encompassing meats, dairy products and processed products in general were R$ 3.8 billion, an increase of 8%. Pro-forma growth of 10% in sales volume was driven by stabilization in the economy, improved disposable incomes and the expansion in consumption.
Export volume increased 10% in the quarter and revenue totaled R$ 2.4 billion, in line with 2009. Export sales reflected a 9.3% decline in average prices in Reais, the impact of the foreign exchange effect; however returns from this business posted a substantial improvement.
Net income of R$ 132 million in the quarter was equivalent to a net margin of 2.4%.
BRF's capital expenditures were R$ 155.7 million in the period and largely used for projects for increasing productivity and for improvements, in addition to new industrial units under construction, including Lucas do Rio Verde (MT) and Vitoria de Santo Antao (PE).
FIRST HALF SALES REVENUE TOTALS R$ 12 BILLION
The first half of the year was characterized by volatile financial markets provoked by a scenario of continuing instability. The improvement in company performance was driven by stronger domestic demand and a gradual recovery in exports.
BRF's first half gross sales were R$ 12 billion. The domestic market segment reported the best performance, sales rising by 6%. EBITDA exceeded the R$ 1 billion mark and corresponded to a 9.8% margin.
BRF (BRFS) is one of the largest food companies in Latin America and one of the largest food processing companies in the world. The Company exports its products to more than 140 countries.
SOURCE BRF - Brasil Foods S.A.