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Brasil Foods Sees Third Quarter Growth

14 November 2012

BRAZIL - Net revenues in the third quarter of Brasil Foods (BRF) totalled R$7.2 billion, representing growth of 14.3 per cent over the same period last year. This has been done whilst complying with the agreement signed with ACDE (Administrative Council for Economic Defense) and the current poor global economic environment.

The recovery of prices partially eased the cost pressure of the main raw materials on operating margins in Q3. But also the reflexes were significant since the cost of maize, for example, were increased up to 26.3 per cent in the period before the second quarter of the year.

During the quarter, EBITDA margin decreased 3.6 percentage points. Gross profit totalled R$1.5 billion, down 5 per cent, and net income was R$90.9 million, 75 per cent lower than the third quarter of 2011.

During the year, 283 products were launched, contemplating expanding the portfolio, repositioning of brands and/or categories and add value. In the third quarter, launches totalled 115 products, distributed as follows: Food Service - 18, domestic market - 51; export market - 31; dairy segment - 15.

Internal market

The domestic sales reached R$3.1 billion in the quarter, 7.4 per cent higher compared to the previous year. For the year, revenues totaled R$9 billion, with volumes broadly stable.

External market

Revenue from exports reached US$3.1 billion, growth of 26 per cent compared to Q3 2011. The highlight was the Middle East, where revenue grew 46.5 per cent.

Despite the adverse scenario - greater supply of pigs and birds recorded during the year in importing countries, besides the high cost of grain - were shipped 628,300 tons, 11.7 per cent higher.

For the year, revenue progressed by 12 per cent, reaching R$8.2 billion, and volumes grew 10 per cent to 1.85 million tons.


In the dairy segment, revenue growth was 4.8 per cent, totalling R$692.3 million in Q3, while the accumulated growth was 6 per cent, totaling R$2 billion.

The Batavo, marks the company's portfolio, is currently third in the yoghurt market, with 10.9 per cent share. With the launch of chunks, yogurt with fruit up to ten times more than similar, the brand increased 3.4 points in the category cups between April and September this year (Nielsen data). This performance demonstrates the alignment area of the dairy market trend of adding value to their products.

Food service

In the third quarter, the Food Service area showed growth in both revenue and volume. Sales were up 8 per cent, reaching R$354 million, while volumes increased 2.6 per cent. For the year, volumes and revenues grew 6 per cent and 9 per cent, respectively, reaching R$1 million.

ThePigSite News Desk

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