BRAZIL: Brasil Foods sees sales gains boost profits
Brasil Foods, the company created through the 2009 merger between Brazilian food makers Perdigao and Sadia, has posted higher second-quarter profits on the back of rising sales.
The group, which has integrated part of Perdigao and Sadia's operations but is still awaiting full regulatory clearance for the merger, on Friday (13 August) booked a 2% increase in net income to BRL132m (US$74.5m).
Reported net sales more than doubled to BRL5.53bn, although pro-forma net sales climbed 5%.
Gross sales in Brazil climbed 8% when measured on a pro-forma basis to BRL3.88bn. Export sales dipped from BRL2.44bn to BRL2.43bn.
In a joint statement, co-chairmen Luiz Fernando Furlan and Nildemar Secches said Brasil Foods' "good performance" confirmed "the gradual and consistent recovery ... for the main markets in which the company operates".
In June, the Brazilian Finance Ministry recommended that Cade, the country's anti-trust body, approve the creation of Brasil Foods with certain restrictions.
Reflecting on the investigation into the deal as Brasil Foods posted its second-quarter numbers, Furlan and Secches said the company remains "convinced" that the deal can be approved "without qualification".
"The company sees the operation as both pro-competition and also as reinforcing Brazil's penetration and competitiveness in export markets," Furlan and Secches said. "BRF remains confident that Cade will fully approve the operation in view of the absence in Brazil of any significant entry barriers, the existence of intense market rivalry and the potential for capturing major synergies and efficiencies."
Brasil Foods' management has begun to bring together parts of Perdigao and Sadia, including cash and liability management, as well as sales and marketing.
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