BRF increases profitability in second quarter of 2014

Brazilian poultry company BRF experienced a strong generation of cash flow during the second quarter of fiscal year 2014, reaching BRL954 million (US$421.8 million), an increase of 161 percent when compared to the BRL365 million (US$161.39 million) achieved during the in the second quarter of 2013, an increase of 161 percent. This performance demonstrates an increase in operating income of the company, an optimization of its investments and a consistent and sustainable effort for its working capital needs.
BRF ended the second quarter of 2014 with an operating profit of BRL691.7 million (US$305.8 million), representing an increase of 37.6 percent over the same period of 2013. By achieving BRL1 billion (US$440 million), EBITDA in the second quarter of 2014 grew 25.1 percent from the same quarter of 2013, resulting in a margin of 13.0 percent. When comparing between the two periods, gross profit totaled BRL267.1 million (US$118.1 million), 28.1 percent higher.
The strategy to prioritize markets and more profitable products, as well as a good performance of fresh chicken and processed products in the domestic market, produced a breakthrough in the consolidated gross revenues, which reached BRL7.7 billion (US$3.4 billion).
BRF gross debt declines
BRF’s gross debt continued to fall, closing the period at BRL5.1 billion (US$2.25 billion), 14.6 percent down from the figure recorded in the first quarter of 2014. The level of gross debt to EBITDA of the last 12 months increases the strength of the company, certified by Standard & Poor's, which puts it in a comfortable situation to invest.
New BRF products released
In the period, BRF launched 24 products, 18 of them in the domestic market, 4 in foreign markets and 2 in the foodservice segment.
World Cup sponsorship deemed successful
The campaign #jogapramim made Sadia, sponsor of the Brazilian national soccer team, became one of the five most remembered brands related to soccer and the World Cup. The evaluation of consumers was quite positive, with over 80 percent approval and presence in the global trend topics. The move was important to strengthen the sports platform of the company, which now directs its efforts to the 2016 Olympic Games in Rio de Janeiro, an event which BRF is an official sponsor.