Brazilian food company Perdigão reported net sales of R$ 1.2 billion in the first quarter of 2005, 10.9% higher than the same period last year, representing growth in sales volume and revenue in both the domestic and export markets.
Perdigão posted an EBITDA of 12.2% of net sales and equivalent to R$ 147.3 million, according to the company, due to efficient cost control management, reduction in expenses, improved productivity and better sales performance.
Perdigão thus repeated the operating performance registered for the average of the four quarters of 2004.
However, the appreciation of the real in relation to the dollar reduced net income by 10.6% compared to the same quarter last year, given that 54.7% of net sales were generated from export business.
“The currency question is not going to restrain our internationalization project, nor will it interfere in our aggressive commercial policy. We are being relatively successful in our attempts to increase prices in all markets,” Perdigão’s CFO, Wang Wei Chang, points out.
Export volumes and revenues grew 15% and 13.4%, respectively, a significant increase considering that in the first quarter of 2004, the demand for meats in the international market was especially strong due to sanitary problems in major producing regions of the market.
The domestic market recorded lower growth rates of 5% in volume and 9% in revenues, still reflecting the slow recovery in demand due to reduced disposable incomes among Brazilian consumers.
Gross profit reached R$ 329.2 million, and, despite only a small increase in operating results to R$ 122 million, net income reached R$ 71.8 million against R$ 80.3 million in the first quarter of 2004.