Brasil Foods Reports Quarterly Earnings of R$ 210 Million

Results consolidate the performance of BRF and Sadia

Nov 12, 2009, 15:46 ET from BRF - Brasil Foods S.A.

SAO PAULO, Nov. 12 /PRNewswire-FirstCall/ -- BRF Brasil Foods (NYSE: PDA) announces results for the third quarter of 2009.

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BRF Brasil Foods' third quarter balance sheet consolidates the results for Sadia (a wholly owned subsidiary) and its controlled companies. In the period, the company reported net income of over R$ 210 million and net sales of R$ 5.3 billion. The company commercialized a total of 1.4 million tons of meats, dairy products and other processed items during the quarter.

The domestic market reported the best performance, accounting for 58% of net sales, equivalent to revenues of R$ 3.8 billion.

Exports reached R$ 2.3 billion. Foreign exchange rate pressures associated with a slow recovery in the principal international markets squeezed margins although this impact was offset by a positive performance in the domestic market.

Gross sales reached R$ 6.2 billion and gross profit, R$ 1.1 billion. Operational results as measured by EBITDA (operating income before financial expenses, taxes and depreciation) posted R$ 291 million, equivalent to an EBITDA margin of 5.5%.

Investments in capital expenditures for the first nine months of the fiscal year on a pro-forma basis (that is the joint investments of BRF and Sadia from January 1 2009), were R$ 665.5 million.

The corporate stages under the Association Agreement -- signed between Perdigao and Sadia on May 19, 2009 -- were successfully concluded:

    - Merger of the shares of HFF's shareholders (July 08)

    - Incorporation of the shares of Sadia's shareholders (August 18)

- Funding of approximately R$ 5.3 billion raised through a primary offering of shares for restructuring the consolidated capital stock, particularly for paying down Sadia's short-term debt.

    For more information, contact:
    Investor Relations Department
    (55) (11) 3718-5465

SOURCE BRF - Brasil Foods S.A.