BRFS Operating Profit is the Best Since 2009
SAO PAULO, Nov. 12, 2010 /PRNewswire-FirstCall/ -- BRF Brasil Foods posted a third quarter 2010 operating income of R$ 416 million, 613% higher than 3Q09 – the best operating result since 2009 and confirming a consistent improvement with each successive quarter.
Gross sales were R$ 6.5 billion, a year on year growth of 6.9% and a 3.5% improvement in relation to the preceding quarter this year. Gross profits were R$ 1.6 billion, an increase of 44% over the same quarter in 2009 and equivalent to a margin of 27.8%.
Operating performance produced an EBITDA of R$ 613.6 million, 111% higher. This reflected an effective control over costs, good domestic market performance and the consistent recovery in export markets.
Domestic market sales amounted to R$ 4.1 billion, 8% more than for the same period in the preceding fiscal year, indicative of an expanding economy. The meat segment recorded increases in both sales (5.6%) and volume (5.3%). The dairy products business also saw volumes climb 8.4% and sales, 3.4%.
As already detected in the previous quarter, between the months of July and September, exports continued to present an improvement in margins and recovering demand and prices in the Company's leading markets (Far East, Middle East, Eurasia and Africa). Exports increased 4.5% in terms of revenue reaching R$ 2.4 billion and 10.4% in volumes.
Net income in the quarter was R$ 189.7 million, corresponding to a net margin of 3.3%. On a quarter on quarter comparative basis, the net result for the period was up by R$ 58 million.
The improvement in operating cash flow and the financial discipline adopted by the Company have been instrumental in reducing the net debt to EBITDA ratio to 1.9 times. This serves to underscore the strength of the balance sheet which continues to show a good portion of debt (74%) with long term maturities and low exposure to currency risk.
BRF's sales exceeded the R$ 18.7 billion mark for the first three quarters of 2010. The Company posted an increase in gross profits of 32% compared with the first nine months of 2009, registering R$ 4.3 billion.
Despite the unfavorable scenario of increasing principal raw material costs and foreign exchange pressure, EBITDA was R$ 1.65 billion, a growth of 93% compared with the same period in 2009. Net income was R$ 374 million, a 69% increase.
SOURCE BRF Brasil Foods