M. Dias Branco, the Brazil-based food group, has booked higher profits as a series of price increases helped grow sales.
The company, Brazil’s largest producer of cookies, crackers and pasta by sales volume, posted an 11.3% rise in net profit to BRL279m (US$125.5m) for the first six months of 2014. EBITDA was up 12.6% at BRL374.5m.
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The higher profits came as net sales grew 8.7% to BRL2.2bn. M. Dias Branco said its prices had increased 7.7% on average. Sales volumes were up 0.9%.
Revenue growth slowed in the second quarter, while volumes fell 2.5%. M. Dias Branco pointed to the increase in the number of holidays in Brazil while the country held the football World Cup.
Over the first half, M. Dias Branco saw volumes increase in each of the product portfolios on which it raised prices.
The company said Nielsen data for May and June showed its two largest businesses – the cookies and crackers divison and the pasta unit – increased its share of the two categories.
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By GlobalDataClick here for the detailed statement from M. Dias Branco.
