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.