July 30, 2007

Brazil's Sadia to pour US$1 billion for expansion investments

Brazilian meat conglomerate Sadia plans to invest 2.0 billion Brazilian reais (US$1.038 billion/755.5 million reais) in the next 18 months, announced  company president Gilberto Tomazoni on July 26.

The 720 million Brazilian reais (US$373.8 million/272 million euro) will be earmarked to increase Sadia's processed meats while 640 million reais (US$332.3 million /241.8 million euro) will be invested in the construction of the company's agroindustrial complex of Lucas do Rio Verde, in central-western Mato Grosso state. Some 130 million reais (US$67.5 million/49.1 million euro) will be directed to Sadia's beef producing operations. The remaining 510 million reais (US$264.8 million/192.7 million euros) will be for other expansion projects, as well as for information technology (IT) and infrastructural projects.

The investment is set to double the company's profit turnover in the next five years.

In the second quarter of 2007, Sadia's investments totalled 175.6 million reais (US$91.2 million/66.3 million euros). The 56.8 million reais (US$29.5 million/21.5 million euros) were focused on chicken, 49.7 million reais (US$25.8 million/18.8 million euros) were for processed meat, and 44.4 million reais for pork (US$23.1 million/16.8 million euros) and 4.7 million reais for beef (US$2.4 million/1.8 million euros). The company also plans to chuck a total 800 million reais (US$415.4 million /302.2 million euros) by the end of 2007.

Sadia's net profit soared 522.4 percent year-on-year to 109.3 million Brazilian reais (US$56.7 million/41.3 million euros) in the second quarter of 2007.