Oct. 28 (Bloomberg) -- BRF - Brasil Foods SA, the world’s largest poultry exporter, posted better-than-expected third quarter profit on higher domestic sales and increased prices.
Net income rose to 365 million reais ($213 million), or 42 centavos a share, from 211 million reais, or 24 centavos, a year earlier, Sao Paulo-based Brasil Foods said late yesterday in a statement. The company was expected to report a profit of 37 centavos per share excluding some items, according to the average of seven analysts estimates compiled by Bloomberg.
Brasil Foods raised prices an average 15 percent in the period on sausages, frozen pizza and TV dinners, Barclays Plc analyst Gabriel Vaz de Lima said in a note to investors on Oct. 6. These rises led to a 14 percent increase in domestic sales, which account for about two-thirds of revenue for the country’s largest maker of TV dinners and frozen meat products.
Net sales climbed 10 percent to 6.29 billion reais in the quarter, while exports rose 6 percent to 2.47 billion reais. The company’s margin on earnings before interest, tax, depreciation and amortization increased to 11.5 percent, from 10.8 percent.
Formerly known as Perdigao, Brasil Foods agreed to buy Sadia in 2009 after the rival booked more than 3 billion reais of wrong-way currency bets the prior year.
Brasil Foods agreed July 13 to sell some assets to win conditional approval for its $3.8 billion acquisition of Sadia SA. Brazil’s antitrust regulator approved the takeover if Brasil Foods temporarily stops using some meat brands and sells 10 food-processing plants, 12 additional brands, eight distribution centers and four chicken and pork slaughterhouses.
--With assistance from Laura Price in Buenos Aires. Editor: Dale Crofts, Jasmina Kelemen
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