BRF net income increases 109.4%, reaching R$2.2 billion in 2014

SAO PAULO, Feb. 26, 2015 /PRNewswire/ -- BRF more than doubled its net income in 2014 to R$2.2 billion, an increase of 109.4% over the same period last year. EBITDA reached R$4.9 billion, 56.4% higher than 2013. Net operating revenue (NOR) totaled R$31.7 billion, an increase of 4.0% over 2013. The company's performance was mainly driven by positive results in the international market, growth of sales points across Brazil and improved service quality.

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The following analysis excludes the results from the dairy operations, presented on the balance sheet as discontinued operations, following the signature of the agreement for the sale of this segment to Lactalis. Net operating revenue grew by 4.4% in 2014 reaching R$29.0 billion, compared to R$27.8 billion in 2013, as a result of higher average prices in Brazil and international markets, as well as growth in volumes for the Food Service segment. BRF's global strategy of placing the final consumer at the center of its business, identifying the unique characteristics and trends in more than 120 countries where the company is present, has proved to be a success.

In 2014, the company also reduced its debt levels to close the fourth quarter with a net debt/ EBITDA ratio (last twelve months) of 1.04, compared to 2.17 in 4Q13.

The sale of the dairy business to Lactalis (for R$1.8 billion) is in line with the company's strategy to focus on its core businesses. Following this same view, the company entered into a strategic partnership with Frigorifico Minerva, which acquired BRF's cattle slaughtering plants in exchange for a stake in the company. 

Also in line with its international expansion strategy, BRF acquired three  distributors in the Middle East during the year: Federal Foods in the United Arab Emirates; Al Khan Foods (AKF) in Oman, and Alyasra in the State of Kuwait. The company also inaugurated a processed foods plant in Abu Dhabi with production capacity of up to 70,000 tons per year. With this, the company strengthened its portfolio to better serve its operations in South and Southeast Asia, the Middle East and Africa. Finally, the company announced a joint venture with PT Indofood to explore the poultry and processed foods business in Indonesia.

FULL YEAR 2014 NUMBERS (Excluding the results of Dairy operations)

R$ million

(*) Earnings per Share (in R$) on a consolidated basis, excluding treasury shares

SOURCE BRF