Sadia records profit downturn
Giant integrated protein producer Sadia with 2005 sales of 2.8 billion euros reported a significant downturn in profit for the second fiscal quarter of 2006.
This was attributed largely to a decline in export volume of broilers associated with decreased demand following fear of AI in their markets.
The company is heavily dependent on export sales, which normally represent 50% of revenue. Sadia recorded a 43% decline in export volume for July 2006 compared to the corresponding month in 2005 when 255,000 tons was shipped. In addition, unit revenue for July 2006 was 9% lower than the value of 997 euros/ton obtained in July 2005.
Sadia earned 6.6 million euros during the second quarter of 2006 compared to 53.6 during the corresponding period in 2005.
On July 21 Sadia declined to increase the value of a 1.8 billion euro offer to purchase a major competitor, Perdigao, following rejection of the bid by 55% of the shareholders of the acquisition target.
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