BRF's First Half Profits Grow 279%

SAO PAULO, Aug. 11, 2011 /PRNewswire/ -- BRF Brasil Foods ended the first half of 2011 reporting a net income of R$ 881 million, 279% higher than the same period in 2010. Net Income amounted to R$ 12.3 billion, a growth of 16%. The numbers were supported by a significant operating performance, especially on the export front, as well as reaping the benefits from the capture of synergies. EBITDA reached R$ 1.6 billion, equivalent to a 13% margin.

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Second quarter EBITDA of R$ 785.9 million represented 49% of first half operating results. Second quarter net income amounted to R$ 497.9 million, a year-on-year increase of 190.4%.

With the approval of the merger, announced on July 13, BRF is experiencing a new phase in its corporate history and initiating the implementation of a plan of approximately 200 actions for adopting best practices which will serve as parameters for guiding the Company's operations.

Domestic Market: Second quarter net sales to the domestic market posted growth of 17.2% to R$ 3.7 billion, representing 58.8% of the total net revenues of the Company over the period. The highlight goes to the processed products area which reported a growth in sales of 17.2%.

Exports: The substantial increase in cost overheads and a continual appreciation of the US dollar against the Real was not enough to inhibit BRF's international business during the second quarter.

As for the first half as a whole, the breakdown of total export revenue of R$ 5 billion reveals the most expressive contributions coming from the Middle East (31.8%), the Far East (22.5%) and Europe (17.5%).

HIGHLIGHTS

2Q11

2Q10

% CH.

Net Sales

6.294

5.532

14%

   Domestic Market

3.700

3.157

17%

   Exports

2.594

2.374

9%

Gross Profit

1.561

1.350

16%

Gross Margin

24.8%

24.4%

40 bps

EBIT

513

352

46%

Net Income

498

171

190%

Net Margin

7,9%

3.1%

480 bps

EBITDA

786

614

28%

EBITDA Margin

12.5%

11.1%

140 bps

Earnings per Share(1)

0.57

0.20

190%

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



SOURCE BRF Brasil Foods




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