Brazil’s Perdigão S.A., one of the largest food companies in Latin America and one of the largest meat processors in the world, exporting to over 100 countries, ended 2004 with the highest net income ever of R$ 295.6 million.
The result, announced yesterday, represents a growth of 139.3% compared to 2003, principally reflecting an excellent export performance. Gross sales amounted to R$ 5.6 billion, 27.4% higher than the preceding year. Net sales were up 27.7% and reached R$ 4.9 billion.
During the year, exports grew 48.4% to R$ 2.7 billion. Sales volume was 23.8% higher than for 2003 and surpassed company forecasts.
Other factors that impacted this record performance were improvement in product mix and prices and maintenance in domestic market costs.
Domestic market sales reached R$ 2.8 billion, 12% more than 2003. In volume terms, sales reached 532,200 tons, 6.2% higher than in 2003.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) registered growth in the period of 54.9%, rising to R$ 593.8 million and corresponding to a margin of 12.2%.
Gross profits rose 32%, amounting to R$ 1.4 billion, while operating income before financial expenses amounted to R$ 498.3 million, an increase of 73.4%.
For 2005, the Company is forecasting 9% growth in sales volume based on the tendencies in both domestic and export markets. During the current fiscal year, Perdigão estimates its capital expenditures at about R$ 150 million, dedicated to the continued expansion of the Rio Verde unit.
It also plans the start on the construction of the Mineiros complex, as well as investments in logistical and infrastructure projects and optimization of production lines at units in the states of Santa Catarina, Rio Grande do Sul and Paraná.