Brazilian meat processor Sadia saw its second-quarter net profit jump 124% on Friday (14 August), due in part, by a positive result in the company’s domestic market.
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Sadia posted second-quarter profit of BRL346m (US$186M), compared with BRL154m in the same quarter of 2008.
Operating revenue was down slightly from BRL2.60bn in 2008 to BRL2.57bn in the second-quarter of 2009. EBITDA was also down – 14% – to BRL248m.
Sales in Sadia’s domestic market were responsible for 58.5% of the company’s total revenues in the quarter, compared to 51.2% in 2008.
The devaluation of the dollar for the second quarter in relation to the first quarter was around 13% and had an effect on the better financial result for the 2Q09. We are confident that in spite of the instability in the foreign market, Sadia is taking the necessary actions with the intent to minimize the impact of this volatility in its results,” said Gilberto Tomazoni, CEO.
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By GlobalDataIn May Perdigao agreed to take over Sadia to create a global food industry leader with annual sales topping BRL22bn. However, Brazilian antitrust regulators must approve the merger.
According to the agreement, Perdigao will change its name to Brasil Foods and Sadia will operate as a subsidiary of the enlarged group through a share-swap deal.
