BRAZIL: Brasil Foods profits drop despite sales gains
- Net sales up 10.9%
- EBITDA falls 17.4%
- Net profit down to BRL813.2m
BRF profits drop
Brasil Foods has reported a drop in full-year earnings, as higher costs offset growing sales in 2012.
In a filing yesterday (4 March), Brasil Foods said sales during 2012 rose 10.9%, climbing to BRL28.5bn (US$14.43bn). Exports jumped 15.2%, while domestic sales increased 8.5% in the period, driven by innovation and NPD.
However, EBITDA fell 17.4% to BRL2.7bn. The company blamed the decline on cost pressure, transitory expenses and the ceding of assets combined with an adverse international trading environment. The company stepped up its investment in driving growth by 25% in the period.
Net income totalled BRL813.2m, down from BRL1.4bn in 2011.
Brasil Foods: Net Sales Reach R$ 28.5 Billion In 2012
SAO PAULO, March 4, 2013
BRF reported net sales of R$ 28.5 billion for fiscal year 2012, 10.9% higher than posted in the preceding year, with a net income of R$ 813.2 million. The Company's efforts to accelerate the growth of its operations and at the same time comply with its commitments under the merger agreement were determinants in sustaining the positive result, underscoring BRF's competitive advantage in its capacity to plan and execute.
Exports rose 15.2% in revenues, totaling R$ 11.6 billion, and 9.6% by volume. In the domestic market, sales revenue improved by 8.5% to reach R$ 12.6 billion. This was achieved despite the modest growth of the Brazilian economy and the divestment of some of the Company's assets and suspension of certain brand categories representing about a third of domestic market sales volume. Additionally, in the dairy products and food services segments, sales revenue rose by 6.9% and 7.9%, respectively. EBITDA reached R$ 2.7 billion, a year-on-year decline of 17.4%, impacted by several factors such as cost pressure, transitory expenses and the ceding of assets combined with an adverse international trading environment. BRF's robust governance model, consolidated in 2012 with the integration of Perdigao/Sadia, was reflected in the major advances which the company was able to record during the period in the form of new levels of efficiency which contributed to making the company increasingly more competitive and sustainable. During the year, investments amounted to R$ 2.5 billion, 25% higher than in 2011. Capital expenditures were directed to the development of hundreds of projects related to growth, efficiency and support: adjustments made to plants for those production lines shifted from transferred units, new distribution centers, and the redesign of the logistics network, among others. Over the twelve months, the Company launched 454 products, underscoring its capacity for innovation and reinforcing its penetration in several retailing channels.
Original source: Brasil Foods
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