Profit at BRF Grows 125% in 2010

Company is the third largest exporter in the country and accounts for more than 20% of the Brazilian trade surplus

Mar 25, 2011, 11:18 ET from Brasil Foods

SAO PAULO, March 25, 2011 /PRNewswire/ -- The year 2010 was one of many challenges and important achievements for BRF Brasil Foods (BM&FBovespa: BRFS3; NYSE: BRFS). The company reported growth with efficiency, gains in scale and profitability.

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Net income reached R$ 804 million, a 125% increase – on a pro-forma basis (*) – compared with fiscal year 2009. Net sales at R$ 22.7 billion were 8.3% higher.

Despite a scenario of currency appreciation and spiraling commodity prices in the second half of the year, EBITDA amounted to R$ 2.6 billion, corresponding to growth of 126% and representing a margin of 11.6% against fiscal year 2009.

The Company invested more than R$ 1 billion during the year in expansion and modernization of its productive capacity as well as in efficiency programs.

BRF was rated as one of the companies inspiring greatest confidence among investors and shareholders, reporting a 21% increase in market capitalization against an appreciation of only 1% in the IBOVESPA stock index.

DOMESTIC MARKET

The meat segment recorded an increase of 10.5% in sales revenue and 6.6% in volume. The recovery in natura exports helped stabilize the domestic market, sustaining prices and the sale of higher added value items.

Net sales in the dairy products segment regained the levels of 2008 ending the fiscal year at R$ 2.3 billion.

EXPORT MARKET

Markets generally posted a gradual and consistent recovery during the course of the year. Meat exports amounted to R$ 9 billion, 5% higher than in 2009, while volumes rose 6%.

BRF has been implementing its Internationalization Project, its focus on higher added value products and distribution to the key operating regions.

4th QUARTER: REVENUE GROWS 21% AND GROSS PROFIT, 49.5%

Net sales totaled R$ 6.4 billion, 20.6% higher, a growth of 22% in the domestic market and 18.3% in the overseas market. A total of 1.4 million tons was commercialized.

EBITDA reached R$ 959 million, a year-on-year increase of 167% with a margin of 15%.

Net income for the quarter was R$ 360.2 million, corresponding to a margin of 5.6%.

(*) Results from Sadia are incorporated as from July 2009; variations are compared against a pro-forma base as if the incorporation of shares had taken place on January 1 2009

SOURCE Brasil Foods