Brasil Foods' first quarter profit grows sixfold
Brasil Foods' gross profit in this year's first quarter has grown sixfold in comparison to last year's first quarter. The meat processor achieved a gross profit of R$816.4 million (€352 million).
The Brazilian company, headquartered in São Paulo, compensated for strongly reduced beef exports by exporting more poultry meat and also by increasing sales in a larger domestic market.
Turnover, on a yearly basis, grew 19% to R$6 billion (€2.6 billion). Exports of beef dropped by 16.6%; pork exports decreased 2%. Poultry exports, however, grew by 11%. Brasil Foods mainly does business with the Middle East and China and is the world’s largest meat producer after JBS.
Exports to the Middle East accounted for 33.6% of total exports, the Far East following by 21.2%, and Europe with 17.3%.
Domestic demand to meat grew as well, as the Brazilian economy is prospering and so do wages. Domestic turnover grew 20% to R$3.6 billion (€1.55 billion). The company mainly aims to stimulate pork sales as Brazilians are not really into eating pork.
Investments in the first quarter amounted to R$168.8 million.
Brasil Foods’ gross margin is about 14% - which was 8% in 2010.
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