BRF Reports Third Quarter Sales Revenue of R$ 6.3 Billion NET INCOME GROWS 73% IN THE PERIOD
SAO PAULO, Oct. 27, 2011 /PRNewswire/ -- BRF Brasil Foods (Bovespa: BRFS3; NYSE: BRFS) closed the third quarter with net sales of R$ 6.3 billion, 10.4% more than reported for the same period in 2010. Gross profits improved 13.5% to R$ 1.6 billion.
EBITDA reached R$ 722.5 million, equivalent to a margin of 11.5%, while net income amounted to R$ 365 million, an increase of 73%. 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%) as well as dairy products (8.2%), surpassing the R$ 3.8 billion mark, an increase of 14%. The highlight in the period was in processed meat products (industrialized and frozen), which contributed with an increase in sales of about 24%.
Revenues from exports came to R$ 2.5 billion, 6% 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 totaled R$ 252.6 million. Of the total, more than 61.4% was dedicated to projects for productivity, improvements and automation, while 32.6% went to new projects.
ACCUMULATED NINE MONTHS 2011
In the first nine months of 2011. BRF registered net sales of R$ 18.6 billion, 14% better than the comparative period in 2010. Gross sales totaled R$ 4.7 billion in the period - equivalent to growth of 21%.
Net income between January and September was R$ 1.2 billion, a 180% 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 R$ 2.3 billion represented an increase of 39%, with a margin of 12.5%.
Ana Carolina Bastos
SOURCE BRF - Brasil Foods S.A.