Brasil Foods revenues down 14%

Lingering effects of the global financial crisis had caused Brasil Foods' fourth quarter gross revenues to fall 14% to BRL6.3 billion (US$3.5 billion) from a year ago.

Sales revenues from exports fell 31% in the fourth quarter to just over BRL2 billion (US$1.1 billion), and were down 14% year-on-year to BRL9.1 billion (US$5 billion). The export market accounted for about 42% of company sales in the fourth quarter.

JP Morgan analysts had anticipated exports would decline 24% in the fourth quarter, dragging down the company's results.

Fourth-quarter net income totalled BRL6 billion (US$3.3 billion) compared with a proforma net loss of BRL1.33 billion (US$736 million), which reflected financial losses due to the company's speculative bets in the currency markets.

Leopoldo Saboya, the company's financial director, said export sales volumes are expected to slowly recover this year by about 3.5% to 5%.

Domestic sales growth of 4% in 2009 to BRL15.2 billion (US$8.4 billion) helped partially offset the weaker export sales. Total annual sales were down 4% at BRL24.4 billion (US$13.5 billion) for 2009. Domestic demand is expected to grow by 8% in 2010, said Saboya.

For all of 2009, the company reported a net profit of BRL228 million (US$126.2 million), against a net proforma loss of BRL2.4 billion (US$1.33 billion) in 2008.

Brasil Foods was formed in 2009 by the merger of Brazil's top two poultry and pork processors, Perdigao and Sadia.