Perdigao S.A., (NYSE: PDA). Perdigao, one of the largest Brazilian food companies and leader in the specialty meats segment, reported third quarter 2000 net income of R$ 8.6 million, an increase of 638% compared to third quarter 1999. Net income totaled R$ 19.9 million for the first nine months, a 70.7% gain over the same period in 1999. The company’s good performance is due to its efforts to continually improve operating performance while reducing financial expenses, which have offset high production costs. In the third quarter, gross sales reached R$ 501.2 million, 9.7% higher than gross sales measured in the same quarter of the prior year.

“The good results this quarter reflect the beginning stages of market recovery.” said Perdigao’s Chief Financial Officer, Wang Wei Chang. “The sector has been undergoing some difficulties, but the new economic scenario is allowing adjustments in inventories, flat raw material prices and some improvement in sales prices, mainly in the domestic market,” he commented.

According to Wang, expectations for the last quarter of the year are positive, as during the holiday season there is higher consumption of traditional products. Perdigao’s “Boas Festas” line, and its exclusive Chester product, the latter an absolute leader in the special poultry segment, are especially popular during this time of the year. Due to the acquisition of Frigorifico Batavia in April 2000, this year turkey will also be available for consumers’ Christmas dinners.

While Perdigao is gaining visibility in the domestic market, the trend is to increase its international operations. On October 20, 2000, Perdigao listed its Level II ADR Program (American Depositary Receipts) on the New York Stock Exchange. Perdigao is the first Brazilian food company to be traded on the NYSE.

Domestic Market and Export

Year to date meat sales in the domestic market grew by 22.2%, representing 313.8 thousand tons. Revenues increased by 23.7%, totaling R$ 1.1 billion from January through September. Third quarter sales totaled 105.6 thousand tons, 15.8% higher than third quarter 1999.

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According to the AC Nielsen Institute, Perdigao maintains its leadership position in the specialty meats category, and recorded market share of 21.7% from July through August. From August through September the Institute reported that the Company’s share in the frozen meat market was 28.3%, and 33.3% in the ready-to-eat category.

Meat exports totaled 179.6 thousand tons through the first nine months of the year, an increase of 9.9% over the same period in 1999, with more significant growth in the export of elaborated and processed products. Overall exports decreased by 10.3% in the year due to lower dollar prices in Perdigao’s international markets.


Perdigao’s investments to date in 2000 total R$ 159.3 million, 21.3% higher than in 1999. While this amount includes the April acquisition of Frigorifico Batavia, the major part was directed towards installations in many plants. In the Agroindustrial Complex in Rio Verde, in the state of Goias, poultry and hog slaughter and certain types of processing began, while at the Lages Plant in the state of Santa Catarina, equipment to produce new ready-to-eat dishes and increase the production of pasta and appetizers was installed.

Another part of this investment was slated towards launches of breaded, appetizer, pizza and stuffed products, as well as the new “Prontinho” line. A line of frozen pasta, breaded poultry and turkey was implemented at Frigorifico Batavia. Additionally, the portfolio of products under the Batavo brand name was diversified to include specialty meats such as frankfurters, sausages, bologna sausages and salamis.

Wang Wei Chang, Perdigao’s Chief Financial Officer, will conduct a group conference call to discuss third quarter 2000 earnings results on Friday, November 17 at 9:30 am US Eastern Time. Please call 5 to 10 minutes before the start of the call to 719-457-2625, Confirmation Code # 700676. For your convenience, a replay will be available beginning at 12:30 p.m. until November 21, please dial 719-457-0820. Confirmation Code # 700676.

(Note: Certain statements in this Press Release are “forward looking statements” within the meaning of the Private Securities Litigation Act of 1995.)

Perdigao S.A. is a leading Brazilian producer and processor of high quality poultry and pork products. A Level II ADR Program is traded on the NYSE.

               Consolidated Financial Statements for the Period
Ended September 30, 2000 and 1999
In thousands of Brazilian Reais, in accordance with Corporate Law

2000 1999

ASSETS 2,022,882 1,722,109
CURRENT ASSETS 1,049,494 723,932
NONCURRENT ASSETS 84,319 281,960
PERMANENT 889,069 716,217
Investments 5,986 480
Property, plant and equipment 839,961 685,284
Deferred charges 43,122 30,453

LIABILITIES 2,022,882 1,722,109
Capital stock restated 415,433 415,433
Reserves 108,251 66,739
Retained earnings. 15,895 11,537

2000 1999

GROSS SALES 1,435,844 1,270,910
Domestic sales 1,076,176 870,046
Exports 359,668 400,864
Sales returns (205,802) (155,773)
NET SALES 1,230,042 1,115,137
Cost of sales (949,078) (789,425)
GROSS PROFIT 280,964 325,712
Operating expenses (225,404) (211,866)
Financial expenses, net (37,848) (101,843)
Other operating results 6,064 2,042
Nonoperating income 2,817 (2,337)
Provision for taxes (6,745) (59)
Minority Interest 39 --
NET INCOME 19,887 11,649
EBITDA 94,183 147,611