São Paulo – The Brazilian food company BRF posted R$ 3.1 billion (US$ 1.54 billion) in export revenues in quarter one this year, up 31% from the same period last year, according to figures released this Tuesday (30th) by the company, which owns the Sadia and Perdigão brands. The company exported 602,100 tonnes, up 4.1%. Average product price was up 26%.
The Middle East, which is the company’s main target market, accounted for over R$ 1 billion (US$ 499 million) in imports, up 46% from quarter one, 2012. The volume shipped to the region, however, was down 1.3%. According to the company, major importing countries such as Egypt and Iraq are experiencing difficulties which bear down on the population’s consumption.
In the specific case of poultry, however, the volume shipped to the Middle East was up 10.2%. According to company, Saudi Arabia, its leading buyer in the region, accounted for a significant share of BRF’s sales. The country’s poultry imports were up 28.2%.
The company’s exports impacted on its net operating profit, which stood at R$ 7.2 billion (US$ 3.5 billion) in quarter one, up 13.8% from the same period last year. According to BRF, there has been a “gradual recovery” of its main target markets, i.e. Middle East and Far East, which were affected by an oversupply the preceding year.” Net profit stood at R$ 359 million (US$ 179 million), up 134% using the same basis of comparison.
Despite the positive results, the company claims exports were damaged by overcrowding at Brazilian ports, caused by the shipping out of the agricultural crop, in March, implying that the company could have performed even better.
Domestically, revenues exceeded R$ 4 billion (US$ 1.9 billion), up 4% from quarter one, 2012. Average product price was up 12.6%, by a higher rate than average costs (7.4%), “as a consequence of inflation carryover, and an improvement in product portfolio for higher value-added products.”
The company’s shares were up 5.7% in the São Paulo Stock Exchange (Bovespa) in quarter one, and down 7.5% in the Ibovespa, Brazil’s leading stock exchange index. The company’s ADRs, i.e. stock traded on the New York Stock Exchange, appreciated by 4.7%. BRF’s market value stood at R$ 38.9 billion (US$ 19.4 billion), up 23.8% from quarter one, 2012.
*Translated by Gabriel Pomerancblum
