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BRF Sees Good Growth in First Quarter

30 April 2014

BRAZIL - BRF closed the first quarter of 2014 with 7.1 per cent growth in EBITDA over the same period last year, totalling R$861 million.

Cash flow for the period was R$1.1 billion, provided both by improving participation in some categories, such as manufacturing and frozen pizzas, which had an increased market share.

The company said the result reflects the strategies and projects that it put in place during the quarter.

The company streamlined its operational area, bringing greater flexibility in decision making and advanced its strategy of “go-to-market” by repeating the positive results of the pilots on the St. Paul and Midwestern markets.

The company also reorganised its international structure into four global regions and put in place a sustained plan to increase its presence in foreign markets.

Net revenue totatled R$7.3 billion in the quarter, an increase of 1.8 per cent over the same period last year.

Net income increased from R$ 208 million in the fourth quarter of 2013 to R$315 million in the first quarter of 2014, even taking into account the seasonality that negatively impacts the start of the year.

When comparing the same periods of 2013 and 2014, net income was impacted by the non-reoccuring operating expenses of the Restructuring Plan, a strategy that, as already announced, predicts an increase of R$1.9 billion in operating income by 2016.

In period, BRF invested R$335.8 million.

The contributions were directed to growth projects, efficiency and support, biological assets and disbursements for the construction of the factory in the Middle East.

Exports

Historically, the first quarter is a seasonally low period for the export of proteins, but the company said that despite this and the changes in the company structure, it had done well.

During the period, the company exported 535,300 tonnes, and revenue reached about R $ 3.1 billion.

he operating profit of the company in exports showed a significant improvement of 432.5 per cent, reaching R$183.8 million in the quarter compared to R$34.5 million recorded in the same period last year.

Operating margin also showed an increase of 4.9 percentage points.

Domestic

In January, the company began a new process of go-to-market (GTM) in the region of Minas Gerais, obtaining very positive results regarding uptake new active customers.

In March the model was implemented in the state of Sao Paulo and the policy should be furled out to all regions by the end of the first half of 2014.

In the first quarter of the year revenue in the domestic market reached R$3.2 billion, 3.6 per cent higher than in the first quarter of 2013.

Dairy

BRF has gained share in both volume and value with all its dairy brands - Bata, Elect and Cotochés - in recent months.

In the first quarter of 2014, net sales increased 1.3 per cent to R $ 655.9 million. The average price was 17.8 per cent higher, partially offsetting the increased costs that grew 28.3 per cent compared to the same period last year.

Food Service

The market for food outside the home grew in the quarter compared the first quarter of 2013, even impacted by higher inflation.

During the period, net sales of the business unit Food Services grew 9.8 per cent compared to the same quarter last year, reaching R$ 401 million. The volume grew by 14.4 per cent, in particular for the advancement of the categories of prepared / processed.

ThePigSite News Desk



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