Brasil Foods reports rise in Q3 revenues

Brazilian food company Brasil Foods (BRF) has reported a steep rise in its net income in the third quarter of 2011 to BRL$365m ($215.73m), 73% more than in the same period in 2010.

BRF said the earnings were driven by operating performance, particularly the meats business, combined with the capture of synergies.

Earnings before interest, taxes, depreciation and amortisation (EBIDTA) for the quarter was BRL722.5m ($427m), representing a margin of 11.5%, while net sales increased 10.4% to BRL6.3bn ($3.72bn).

Gross profit for the period improved 13.5% to BRL1.6bn ($945.67m) year-on-year.

Domestic market sales revenue increased 14% and crossed the BRL3.8bn ($2.24bn) mark, driven by the sales of processed meat products (up 24%), meats (up 18.5%), and dairy products (up 8.2%).

Revenues from exports were BRL2.5bn ($1.47bn), 6% higher than the previous year, led by Far Eastern, European, Middle Eastern and American markets.

The company’s net sales for the first nine months of 2011 increased 14% to BRL18.6bn ($10.99bn), compared to the same period in 2010.