February 16, 2006

Sadia records increase in sales of 15 percent
 

Brazilian meat and food processor Sadia reported sales increases of almost 14 percent last year as they rose from 7.3 billion reals ( US$3.4 billion)  in 2004 to 8.3 billion reals (US$3.9 billion). Volume sales reached 1.8 million tonnes, a 14.2 percent increase over 2004.

The company said both the domestic and international markets performed well, with a growth in revenue of 13.7 and 13.9 percent respectively, despite foot-and-mouth disease in Brazil and bird flu concerns in Europe and Asia.

The poultry sector saw a 34.3 percent increase in volume sold, leading to a 23.3 percent increase in gross operating revenue. The acquisition of SÓFrango, in January 2005, contributed to this growth and the increase in whole poultry sales. As whole poultry has lower prices per tonne compared to poultry cuts, prices in this segment fell by 8.4 percent for the year.

In the pork sector, the company's focus on international sales led to a 30.5 percent drop in domestic sales and a 4.2 percent decrease in gross operating revenue.

Gilberto Tomazoni, Sadia's executive president added that the growth initiated in 2004 pushed sales last year and promised greater expansion with the implementation of three new facilities for poultry and pork in the State of Mato Grosso.