Brazilian food group M. Dias Branco has booked an increase in profits for the first nine months of the year, although a spike in the cost of wheat hit margins.
The snacks and pasta manufacturer posted a 16.4% increase in net income to BRL392.6m (US$539.6m) for the period to the end of September. EBITDA was up 9.9% at BRL526.6m.
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Revenue grew by 21.2% to BRL3.18bn, with sales up across of M. Dias Branco’s product categories.
However, a 30.5% year-on-year rise in the group’s wheat costs weighed on margins. M. Dias Branco said the spike in its wheat bill was the main factor in a 3.5 percentage point increase in its cost of goods sold.
