Perdigao suffers first-quarter loss on increased sales

by Bryan Salvage
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SAO PAULO, BRAZIL — Perdigao relayed its first quarter 2009 EBITDA reached US$56 million, which is equal to a 4.5% margin vs. 7.6% in the first quarter of 2008. The company reported a first quarter 2009 net loss of US$108 million. If the tax loss recognized with the incorporation of the Perdigao Agroindustrial S.A. subsidiary were excluded, the net result would have been a negative US$45 million.

Principal factors behind the narrower first-quarter margins were the sharp decline in export market prices, oversupply in the domestic market and increased production costs and selling expenses due to the loss of exports sales, the company relayed.

First-quarter gross sales, however, were US$1.43 billion, up 7% from its first quarter in 2008. The increase was driven primarily by the domestic market, which reported growth of 8.3% against the same period in the preceding fiscal year.

Export sales amounted to US$ 552 million, up 4% over first-quarter 2008 results. The international market was impacted by a reduction of 22.4% in average prices in F.O.B. dollars, the company relayed. Despite unfavorable trading conditions, meat export volumes were 5% higher and revenues from this activity were up 6.3% compared to the same tear-earlier period.

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