São Paulo – Brasil Foods (BRF), which owns food brands Sadia and Perdigão, posted a net profit of 365 million Brazilian reais (US$ 208.9 million) in the third quarter of the year, 73% more than in the same period of 2010. The company posted a net profit of 1.2 billion reais (US$ 687 million) year-to-date in 2011, according to the third quarter balance sheet issued by the company this Thursday (27th).
According to the company, the export performance was merely “satisfactory,” mostly because the exchange rate was unfavourable. BRF posted 2.5 billion reais (US$ 1.4 billion) in export revenues, 5.6% more than in the second quarter. During the period, 570,000 tonnes were shipped, a volume 6.3% lower than in the second quarter of this year. One of the reasons for the decline in volume shipped was the Russian embargo on Brazilian beef.
Even so, beef exports fetched 2.4 billion reais (US$ 1.3 billion), 4.9% more than in the second quarter, even though the volume shipped was 6.7% lower. Revenues grew because the average price in reais rose by 12.5%.
The Middle East is the leading target market for Brasil Foods products. Year-to-date, 31.5% of the company’s exports went to the Middle East and 22.1% went to the Far East. Europe purchased 18.5% of all exported products, Eurasia purchased 8.6% and the remaining European countries bought 19.5%. Exports to the Middle East have remained virtually stable when compared with the same period of 2010, as these sales accounted for 34.1% of the total last year.
Still, the company expects increase the share of export revenues in its overall exports, according to the strategic long-term plan (BRF-15). Currently, revenues from foreign sales account for 40% of BRF’s revenues. The goal is to raise the share up to 50% by 2015. Part of the expansion should come from the plant that BRF is building in Abu Dhabi, to which investment 120 million reais (US$ 68 million) is being allocated. The unit will have a processing capacity of 80,000 tonnes per year. According to the company, the plant will enable BRF to consolidate its leadership in the region, have access to new markets and strengthen its brands, distribution and sales.
Brasil Foods total revenues reached 6.3 billion reais (US$ 3.6 billion) in the third quarter. Out of that total, 3.8 billion reais (US$ 2.1 billion) came from the domestic market. Third quarter revenues were 10.4% greater than in the same period of 2010. Year-to-date, the company posted revenues of 18.6 billion reais (US$ 10.6 billion). Gross profit stood at 1.6 billion reais (US$ 916 million) in the third quarter this year.
*Translated by Gabriel Pomerancblum
