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Press release from PR Newswire

BRF Announces 1st Quarter Results With a Growth of 5.3% in Revenue and Net Income of R$ 153 Million

Friday, April 27, 2012

BRF Announces 1st Quarter Results With a Growth of 5.3% in Revenue and Net Income of R$ 153 Million20:48 EDT Friday, April 27, 2012The Company has now been assigned an investment grade rating by all three leading rating agenciesSAO PAULO, April 27, 2012 /PRNewswire/ -- BRF ended the first quarter 2012 reporting net sales of R$ 6.3 billion, a year-on-year increase of 5.3%. Quarterly gross profits were R$ 1.3 billion, a decline of 13%, primarily reflecting the challenges of the overseas market which saw a significant decline in prices. Net income in the quarter was R$ 153.2 million while EBITDA reached R$ 532 million, corresponding to a margin of 8.4%, compared with R$ 816 million in the preceding year, same quarter, and a margin of 13.6%. The Company's results reflected the challenging scenario in the export market, as had already been observed in the fourth quarter of 2011. Some key markets such as Japan and the Middle East continued to suffer from a process of adjustment and running down of levels of inventory and merchandise flows. Export revenues in the quarter were R$ 2.4 billion, practically unchanged as compared with the same quarter last year.Conversely, the Company reported a good performance in sales to the domestic/retail market amounting to R$ 3 billion, a growth of 11%, in spite of below-forecast consumption in the Brazilian retail sector overall.Similarly, the food service segment reported a good performance posting an increase in net sales of  10.4%. During the period, the Company launched 11 products between in natura and processed lines for the major global networks, a savory snacks platform, a grill line and rotisserie products.The Company also achieved an investment grade risk rating classification from all three principal world rating agencies. In their assessment, the agencies emphasized competitive advantages such as brand, distribution, corporate governance and financial soundness, among others.  Between the months of March and April, Standard & Poor's and Moody's assigned an investment grade rating to the Company while Fitch Ratings reiterated its rating first issued a year ago. 1ST QUARTER 2012 NUMBERSR$ million1Q121Q11Change %Net Sales6,3376,0205%Domestic Market3,9193,5929%Exports2,4182,428(0)Gross Profit 1,3431,546(13)Gross Margin21.2%25.7%-450 bpsEBIT268525(49)Net Income153383(60)Net Margin2.4%6.4%-400 bpsEBITDA532816(35%)EBITDA Margin8.4%13.6%-520 bps Earnings per Share (1)0.180.44(60)(1) Consolidated Earnings per Share (in R$), excluding treasury stock Sao Paulo, April 27, 2012Leopoldo Viriato SaboyaChief Financial, Administration and Investor Relations OfficerSOURCE BRF - Brasil Foods S.A.For further information: Ana Carolina Bastos, +011-55-11-2322-5037, ana.bastos@brasilfoods.com