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Despite Global Crisis Food Company Sadia Grows 10% in Brazil

It's been the best of times for Brazil's Sadia. The Brazilian food manufacturing company posted revenues of 2.9 billion reais (US$ 1.3 billion) in the first quarter of 2009, ended the period as the 5th largest exporting company in Brazil, and earned the 5th place in the ranking of the world's 200 companies with the best reputation, according to the Global Pulse survey, conducted by the New York-based Reputation Institute.

The company's gross revenues recorded growth of 10.6% over the first three months of last year. Net revenues, in turn, totaled to 2.5 billion reais (US$ 1.2 billion), growth of 8.1% over the same period of 2008.

According to information supplied by the Sadia press office, the results are a consequence of the company's continual effort to attain sustainable growth, in months strongly impacted by the reduction of global demand for meats.

According to the release, the company's operational results remained solid during the entire year. Overall sales volume decreased by 0.5%, having totaled 530,000 tons, due to the retraction of foreign demand.

Sales by Sadia in Brazil grew 10.3% and totaled 281,590 tons. Domestic revenues totaled to 1.7 billion reais (US$ 812 million), representing growth of 22.7% over the first quarter of 2008.

With regard to the foreign market, sales dropped by 10.5%, totaling 248,710 tons in terms of volume and 1.2 billion reais (US$ 573 million) in terms of revenues, a reduction of 3.3%. The decrease, according to the press office's release, is due to the need for adjusting the inventories and the credit crunch in foreign countries.

With the slowdown in international demand, the segment of industrialized foods decreased by 17.1% volume-wise, having totaled 24,000 tons. Revenues, in turn, posted growth of 2.3% (US$ 65 million) in comparison with the first quarter of the previous year.

Poultry exports also dropped, by 9.3%, having totaled 195,980 tons. Nevertheless, the segment led foreign sales and answered to 69.1% of revenues from foreign sales, having totaled to 801.6 million reais (US$ 383 million), a reduction of 9%.

The company's segment that was most harmed by the crisis was bovine meat. Shipped volume totaled to 5,510 tons, a reduction of 43% over the first quarter of last year. Revenues, in turn, totaled to 39.4 million reais (US$ 18.8 million), reduction of 36.2%.

Anba

Next: Saudis Looking for Opportunities and Investors in Brazil
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