São Paulo – Exports by Brasil Foods (BRF) to the Middle East and Africa saw a decline in quarter three (Q3) this year from Q3 2012. According to the Q3 balance sheet released by the company this Monday (28th), exports to the Middle East were down 7.3% from Q3 last year. The volume shipped to Africa was down 4.1%, but revenues from exports to the continent have increased.
According to a press release from BRF, the outlook for exports to the Middle East in Q3 was good, due to the Ramadan, i.e. the Holy Month of Muslims, which took place in July, and then the Hajj, i.e. the pilgrimage to Mecca. These are periods in which importers increase their stock-up levels. However, the company has reported, sales fell short of expectations. “Despite this scenario, there are signals that Brazilian exports to the Middle East should gradually recover by the end of 2013,” according to the press release.
Exports to Africa were also down in Q3 this year from Q3 2012. The volume shipped was down 4.1%, but export revenues were up 4.5% due to an 8.9% increase in average price in African countries.
Overall, BRF’s Q3 exports were down in volume but up in revenues. According to the company, exports amounted to 608,700 tonnes, down 3.1% from Q3 2012. Export revenues stood at R$ 3.2 billion (US$ 1.4 billion), up 6.3%.
BRF reported that the resumption of exports to Ukraine and the depreciation of Brazil’s real against the US dollar helped to drive prices up, but sales volumes suffered due to rainfall, which caused the Port of Itajaí, in the state of Santa Catarina, to be shut down for “several days.”
Exports to the Middle East accounted for 31.9% of total export revenues for the company. Exports to the Far East represented 19.8% of total exports, followed by the American continent (18%), Europe (15.8%), Eurasia (7.5%) and Africa (7%). In Q3 2012, export revenues to the Middle East accounted for 35.9% of total exports, and sales to Africa stood at 7.1%. BRF has a subsidiary company in the United Arab Emirates.
In Q3 this year, the company posted R$ 7.578 billion (US$ 3.46 billion) in revenues, up 5% from the same period last year. Net income was up 216% to R$ 287 million (US$ 131 million). Year-to-date through September, revenues stood at R$ 22.3 billion (US$ 10.1 billion), up 10% from the same period in 2012, and net income stood at R$ 854 million (US$ 390 million), up 241% from January to September 2012.
*Translated by Gabriel Pomerancblum
