Perdigao: Q2 Sales Grow by More Than 80%29 July 2008
BRAZIL - Perdigao closed the second quarter of 2008 with gross sales of 3.3 billion real (BRR), 81.2% more than the same period in 2007.
This growth reflects the increase in sales in both volume and revenues in the domestic and export markets.
Performance was also driven by the consolidation of the results from the acquisition of Eleva/Cotoches, among others, as well as out-sourced production agreements signed with other dairy product processors.
Exports reported an increase of 45.4% in meat volume and 64% cent in total revenues, reaching BRR1.3 billion. The growth in international demand for animal protein (poultry and pork) from Brazil has sustained the positive performance in overseas markets. This is despite the continuing appreciation of the Brazilian real against the US dollar during the quarter and the increase in principal commodity prices well above levels recorded in the comparative period for 2007.
Domestic market revenues for the quarter increased year-on-year by 93.9%, reporting a total of BRR1.99 billion. Sales volumes of dairy products increased 338.9% and by 30.5% in the case of meats. Performance in this market was driven by acquisitions, new partnerships - instrumental in enhancing milk output, and the expansion of the Company's business in the margarine and other processed product segments, resulting in a 185.4% increase in sales volumes.
The improvement in the Company's operations in meat and dairy products - allied to sales performance - has been conducive in achieving good operating results. EBITDA reached BRR233.2 million, 40.3% more than for the same period last year.
Gross profit increased from BRR411.2 million to BRR624.6 million, equivalent to a year-on-year increase of 51.9%. Net adjusted income reported growth of 44.7% to BRR102.5 million before the effect for the amortization of goodwill arising from the acquisition of some major operating assets.
In May, Perdigao fully recognized goodwill of BRR1.5 billion (the difference between book and market value), accruing from the acquisitions of Eleva, the margarine businesses and the Batavia business still not controlled by the Company. This generated a tax benefit of BRR501.3 million in addition to a net negative non-recurring effect in the quarter of BRR984.3 million.
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