SAO PAULO, Aug. 13, 2012 /PRNewswire/ -- BRF (Bovespa:
BRFS3; NYSE: BRFS) ended the second quarter of 2012 reporting net
sales of R$ 6.8 billion, a growth of
8.7% compared with the same period in 2011. Net income was
R$ 6.4 million, the Company recording
EBITDA of R$ 565 million,
corresponding to 8.3% of net sales.
Sales volumes in the period totaled 1.4 million tons, a 4.9%
improvement. However, to date, price increases have been
insufficient to neutralize costs arising from spiraling grain
prices.
In addition to a challenging economic scenario, quarterly
results were impacted by the implementation of the complex
initiatives needed to comply with the agreement signed with the
Brazilian anti-trust Administrative Council for Economic Defense
(CADE). The implementation of the agreement implies transitory
costs as well as a temporary fall in the efficiency of the
Company's operations.
These initiatives – which involve the temporary suspension of
some categories as well as the divestment of plants and
distribution centers – are being executed on time and according to
the plan set forth in the agreement signed in June 2011 approving the merger.
During the period, we concluded a ten-year overseas notes
offering for a total of US$ 750
million and at historically low costs. This offering has
enabled the Company to refinance its 2012 maturities and at the
same time lengthening its debt profile and reinforcing
liquidity.
MARKET PERFORMANCE
Export revenues from the overseas market 11% year-on-year to
R$ 2.8 billion. If compared with the
first quarter of 2012, export business was up by 13.6% Compared
with the second quarter of 2011, however, margins narrowed due to
the performance of certain key markets such as the Middle East and the Far East where a situation
of oversupply has persisted since last year.
The domestic market continues to report a positive trend in
sales revenue with year-on-year growth of 7%. However, rapidly
spiraling increases in costs caused some erosion in operating
results when compared with the first quarter of 2012.
Sales revenue also rose in the Dairy Products and Food Service
segments, amounting respectively for increases of 9.2% to
R$ 702 million and 9.3% to
R$ 353 million compared with the
second quarter of the previous fiscal year.
Through the medium of its principal brands, between May and June
of this year, BRF launched 168 products in its various channels of
operations (Brazilian retailing, food service, international
market), both in the meats segment as well as dairy products. In
this way the Company meets the objectives to bolster its product
lines with added value items and to adjust its market
focus.
2Q12
R$
million
|
|
|
2012
|
2011
|
Ch.%
|
|
Net Sales
|
6,842
|
6,294
|
9
|
|
Domestic Market
|
3,970
|
3,700
|
7
|
|
Exports
|
2,872
|
2,594
|
11
|
|
Gross Profit
|
1,489
|
1,561
|
(5)
|
|
Gross Margin
|
21.8%
|
24.8%
|
(3.0
p.p)
|
|
EBIT
|
281
|
513
|
(45)
|
|
Net Income
|
6
|
498
|
(99)
|
|
Net Margin
|
0.1%
|
7.9%
|
(7.8
p.p)
|
|
EBITDA
|
565
|
786
|
(28)
|
|
EBITDA Margin
|
8.3%
|
12.5%
|
(4.2
p.p)
|
|
Earnings per
share*
|
0.01
|
0.57
|
(99)
|
|
|
|
(*) Consolidated earnings per
share (in R$), excluding treasury shares.
|
|
|
|
|
|
1H12
R$
million
|
|
|
2012
|
2011
|
Ch.
%
|
|
Net Sales
|
13,179
|
12,315
|
7
|
|
Domestic Market
|
7,886
|
7,292
|
8
|
|
Exports
|
5,293
|
5,023
|
5
|
|
Gross Profit
|
2,833
|
3,106
|
(9)
|
|
Gross Margin
|
21.5%
|
25.2%
|
(3.7
p.p)
|
|
EBIT
|
549
|
1,038
|
(47)
|
|
Net Income
|
160
|
881
|
(82)
|
|
Net Margin
|
1.2%
|
7.2%
|
(6.0
p.p)
|
|
EBITDA
|
1,097
|
1,602
|
(32)
|
|
EBITDA Margin
|
8.3%
|
13%
|
(4.7
p.p)
|
|
Earnings per
share*
|
0.18
|
1.01
|
(82)
|
|
|
|
(*) Consolidated earnings
per share (in R$), excluding treasury shares.
|
|
|
|
|
|
SOURCE BRF - Brasil Foods S.A.