Brasil Foods reports profits below estimates
For the first quarter of 2012, Brasil Foods has reported a strong decrease in net income of 60%. The Brazilian poultry and pork processor attributes this to lower exports to Asian markets, as well as to increased feed costs.
Brasil Foods, headquartered in São Paulo, reported a net income of R$153 million (US$80.1 million). Last year, in the same period, the company reported a net income of 383 million reais (US$200.5 million).
Profits from chicken and turkey exports retreated after shipments to the Middle East and Japan declined while feed prices continued to rise.
In a press release, Brasil Foods wrote: “The company’s results reflected the challenging scenario in the export market, as had already been observed in the fourth quarter of 2011. Some key markets such as Japan and the Middle East continued to suffer from a process of adjustment and running down of levels of inventory and merchandise flows. Export revenues in the quarter were R$2.4 billion (US$1.3 million), practically unchanged as compared with the same quarter last year.”
Gross profit for the company was 1.34 billion reais (US$703 million) in the first quarter. In addition, Brasil Foods ended the first quarter reporting net sales of R$6.3 billion (US$3.3 billion), which is a year-on-year increase of 5.3%.
Brasil Foods reported a good performance in sales to the domestic/retail market amounting to R$3 billion (US$1.8 billion), a growth of 11%, in spite of below-forecast consumption in the Brazilian retail sector overall.
During the period, the company launched 11 products between in natura and processed lines for the major global networks, a savory snacks platform, a grill line and rotisserie products.
Brasil Foods was created in 2009 from the merger of two traditional Brazilian meatpackers, Sadia and Perdigão.