Brazilian poultry meat processing giant BRF has seen earnings grow by 20 per cent in the second quarter of the year.
The company said that the results in the quarter reflect the strategy adopted by the new administration, with a focus on profitability and maximizing value.
During the period, there was a strong generation of cash flow, reaching R$954.0 million compared to R$365.0 in the second quarter of 2013, an increase of 161 per cent.
BRF said this performance demonstrates improved operating results of the company, optimising investments.
In the quarter the company had an operating income of R$691.7 million, up 37.6 per cent compared to the second quarter of 2013.
EBITDA grew by 25.1 per cent in 2T14 before the analogous quarter of last year and resulted in a margin of 13.0 per cent. Even when comparing the two periods, net income was R$267.1 million, 28.1 per cent higher.
The strategy of prioritising markets and items of higher profitability, as well as a good performance in natural products and poultry domestically generated net revenues of R$7.7 billion.
Net debt continued to fall, closing the period at R$5.1 billion, 14.6 per cent below the first quarter.
In the first half of the year BRF performed well, with net revenues of R$15.0 billion.
Even with total sales 9.8 per cent lower compared to the first half of 2013 there was growth of 10.1 per cent in gross profit (R$3.9 billion),21.3 per cent in operating income (R$1.3 billion), 16.1 per cent EBITDA (R$1.9 billion); and 2.7 per cent in net profit (R$582.5 million).
