Brazil’s Meat Giant Perdigí£o Gets 30% Boost in Exports

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Some of Perdigão's products The Brazilian meat sector industry Perdigão recorded 29.6% greater exports in the second quarter of year, a period that includes the months of April, May and June. According to information supplied by the company, the performance was driven by production adjustments and increased demand in traditional markets. In terms of volume, exports grew by 13% over the second quarter of 2006.

Foreign sales totaled 766.8 million Brazilian reais (US$ 402.4 million) during the quarter. The volume of meat exports reached 200,800 tons.

As a result of a heating international demand, average dollar prices rose by 29.2% in comparison with the same quarter of last year, enabling an increase in profit. The foreign markets that grew the most were Europe, the Middle East and the Far East.

The company's gross revenue during the period reached 1.8 billion reais (US$ 944.6 million), a result 29% greater than recorded in the same months of last year. Volume-wise, sales of meats, dairy products, and other processed goods grew by 19,7%.

Effective cost and expense management, increased productivity, business diversification, and the sales performance have ensured a significant operational performance, according to a press release issued by the company.

The company's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) reached 166.2 million reais (US$ 87.2 million), an amount 279% higher than recorded in the same quarter of 2006.

Earnings in the domestic market totaled 1 billion reais (US$ 524.8 million), 28.3% more than the value recorded in the second quarter of 2006. Gross income reached 411.2 million reais (US$ 215.8 million), a 63.3% increase in comparison with the same quarter of the previous year. The company recorded a net income of 70.8 million reais (US$ 37.1 million).

Perdigão invested 154.4 million reais (US$ 81 million) in the second half of this year. The funds were allocated to the new agroindustrial complex of Mineiros, in the midwestern Brazilian state of Goiás, which was inaugurated in March, to expansion of production lines in Rio Verde, also in the state of Goiás, and expansion of poultry production in Nova Mutum, in the state of Mato Grosso (MW). The company also invested in distribution centers and information technology.

During the quarter, Perdigão also announced the signing of an agreement for purchasing Plusfood, a poultry and bovine meat processing company that owns three plants in Europe, the purchase of a bovine slaughterhouse in Mirassol D'Oeste, Mato Grosso, and the acquisition of margarine brands and production lines, as well as the inking of a strategic partnership with company Unilever.

Anba

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