Sadia, the Brazilian food giant, has posted a net loss of BRL777.4m (US$366.9m) for the third quarter of the year due to the impact of foreign exchange derivatives held by the company.
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The loss compared to a profit of BRL188.4m in the third quarter of last year but Sadia said it had secured credit of BRL2.3bn to guarantee cash flow and cover liabilities.
The result masked an 8.7% rise in operating profit to BRL189.4m. Sales were up 28.3% to BRL3.15bn.
Rising prices lead to 29.2% rise in domestic sales, Sadia said. Export revenues were up 27.3%. Poultry accounts for almost three-quarters of Sadia’s export sales.
Sadia maintained its growth forecast of between 12% and 14% in total volumes for 2008 and an EBITDA margin of between 11% and 12%. Gross revenue is expected to reach BRL12bn.
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By GlobalData“The strengthened cash, the heated demand in the domestic and international markets, the stability of the price of grains and the operational start-up of four expansion projects and of two new units signal a promising outlook for the company’s performance for the end of this year and for the beginning of 2009,” said Sadia chairman Luiz Fernando Furlan.
