Brazilian food group Perdigao has announced a 29% increase in gross sales for the second quarter to BRL1.8bn (US$934m).

The company the result represented a 19.7% increase in sales volumes across its meats, dairy and other processed food operations.

Net income reached BRL70.8 m, the company reported, against a net loss in the second quarter of 2006, which the company said had been due to the unfavourable international trading environment at the time.

The company, which is Brazil's second largest food processor, attributed the improved operating performance to effective management of costs and expenses, increased productivity, diversification of the company's businesses and stronger sales.

Export sales rose by almost 30% in value terms and by 13% in volume, the company added, in spite of the 10.1% appreciation of the Brazilian real against the US dollar during the second quarter. Domestic sales rose by 28.3% to BRL1bn, on the back of higher sales of value-added products.