August 1, 2013
In the second quarter of 2013, Brazilian poultry, meat and food processor Brasil Foods saw the company's net revenue rise by 10% to BRL7.5 billion (US$3.3 billion) and profits of BRL1.9 billion (US$830 million), a rise of 26.1% on-year.
The company puts the rise in revenue down to exports and news product launches, which compensated for the impact made by the agreement with the authority Cade (TCD) to divest itself of some of its lines following acquisitions.
The meat, poultry, dairy and other processed products saw volume sales reach 1.5 million tonnes, 6.1% lower than in the same period in 2012 because of the TCD agreement.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached BRL909.9 million (US$397 million), 61% above the second quarter of 2012, reaching 12.1% compared to 8.3% in the previous year due to the gradual recovery of exports, improving the operating margin of the business market, despite the effects of the transfer of assets.
EBITDA reached BRL801.1 million (US$349 million) in the quarter, 55.5% above the second quarter of 2012, with an EBITDA margin of 10.6% compared to 7.5%. Net income was BRL208.4 million (US$91 million), compared to net income of BRL6.4 million (US$2.8 million) recorded in the second quarter of 2012 because of the lower generation of results in that period.
The second quarter of 2013 net profit was also hit by the non-cash effect of the devaluation of the Real against the US dollar.
In the year to date, net revenue reached BRL14.7 billion (US$6.4 billion), an increase of 11.8%, generated by the sales performance achieved in segments, despite dispositions of the assets needed to meet the TCD.
The meat, dairy and other processed products and other products sectors had volume sales of 3.0 million tonnes, 5.6% lower. Gross profit reached BRL3.6 billion (US$1.6 billion), 26.2% higher thanks to improved market performance and cooling cost pressure. EBITDA reached BRL1.6 billion (US$698 million) in the first half (up 57.1%), with an EBITDA margin of 10.9% compared to 7.7%.
Net income was BRL567.0 million (US$247 million), compared to net income of BRL159.6 million (US$70 million) in the first half of 2012, 255.3% increase, reaching a net margin of 3.8% compared to 1.2%.
