Brasil Foods' net income amounted to R$365 million (US$213.8 million) in the third quarter of 2011, an increase of 73% over 2010 numbers, according to the company's latest report.

The company’s good earnings were driven by operating performance, particularly the meats business, combined with the capture of synergies, said Brasil Foods. This was achieved despite the challenging foreign exchange scenario and the high cost of the main raw materials, both of which contributed to a squeeze on the quarter’s margins.

Domestic market sales revenue reported growth in relation to meats (18.5%) as well as dairy products (8.2%), surpassing the R$3.8 billion (US$2.2 billion) mark, an increase of 14%. The highlight in the period was in processed meat products (industrialized and frozen), which contributed with an increase in sales of about 24%.

Advertisement

Revenues from exports came to R$2.5 billion (US$1.5 billion), 6% higher than in the third quarter of 2010. The performance registered on the Far Eastern, European, Middle Eastern and American markets offset the losses arising from the ban on the Russian market. The exchange rate affected the competitiveness of the company´s products sold on the international market for most of the quarter.

Brasil Foods' investments totaled R$252.6 million (US$147.9 million). Of the total, more than 61.4% was dedicated to projects for productivity, improvements and automation, while 32.6% went to new projects.