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on October 31, 2008

Sadia reports net loss in third quarter

Brazilian poultry, pork and beef producer, Sadia, reported a third quarter net loss of 777.4 million reais ($363 million), compared with net profit of 188.4 million for the same quarter last year.

The company suffered large losses due to hedging and speculative positions held on currency markets during the quarter.

Third quarter EBITDA was stable at 272.3 million reais versus 273.2 million a year ago.

Sadia’s net sales during the quarter rose 29.7% from a year earlier to 2.79 billion reais.

The poultry segment’s sales revenue was up 31.8% and accounted for 38.3% of revenue during the quarter. Sales revenue for the pork segment was up 32.8%, even though volume was down. Beef revenue was up 7.5%. Sales revenue of processed products was up 34.6%.

Sales revenue in the domestic market was R$ 1.7 billion in the third quarter, up 29% from the same period in 2007. Incomes are growing among Brazilians, and the company reported that revenue derived from processed products grew by 30.3% in the quarter.

Income generated by exports in the third quarter was up 27.3%, totaling R$ 1.5 billion. The poultry segment accounted for 73.8% of the total income generated by exports in the third quarter. This income totaled R$ 1.1 billion in the quarter, a growth of 31.9%.
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