Brasil Foods profits grows 125% in 2010

Brazilian poultry processor Brasil Foods has revealed an increase in profits for the last three months of 2010, according to a recent company release.

The year 2010 was one of many challenges and important achievements for BRF Brasil Foods, the report stated. The company reported growth with efficiency, gains in scale and profitability in both domestic and export markets, displaying a recovery which restored the company’s historical levels.

Net income reached R$ 804 million, a 125% increase – on a pro-forma basis – compared with fiscal year 2009. Net sales at R$ 22.7 billion were 8.3% higher.

Processed products
Key factors driving this good performance were the increase in commercialisation volumes of processed products in the domestic market, the consistent and gradual recovery reported in important international markets, reduction of production costs and commercial expenses plus a start on capturing synergies from processes already authorised by the Brazilian anti-trust authority, CADE such as the those of the Overseas Market and Supply Chain areas.

The company ended 2010 as the country’s third largest exporter. Taking into consideration the numbers recorded in the balance sheet for the year, BRF accounts for a little more than 20% of the Brazilian trade balance, which amounted to US$ 20.3 billion and confirming our vocation as a major generator of currency reserves for the country.

Export market performance last year was given a major boost from the coordination of BRF/Sadia’s international operations. With synergy gains and better pricing management, 2.3 million tons were commercialized, 5.9% more than the preceding year, on sales revenue of R$ 9.2 billion, a growth of 4.3%.

Meat segment
Various were the factors stimulating demand and product sales in all segments of the domestic market during the course of last year. The meat segment recorded an increase of 10.5% in sales revenue and 6.6% em volume. The recovery in in natura exports helped stabilize the domestic market, sustaining prices and the sale of higher added value items.

The domestic market remained buoyant against a background of full employment, both contributing to sales of products in all segments, especially those lines destined to meet demand for the year-end holiday period. In the quarter, sales activity in the meats segment grew 22.9% on volumes 10.4% higher. Again in the meat segment, export business generated a revenue of R$ 2.4 billion, 18.3% more than the fourth quarter of fiscal year 2009.

Source: Brasil foods