SAO PAULO, Brazil, May 8 /PRNewswire-FirstCall/ -- Perdigao ended the first quarter 2007 recording gross sales of R$ 1.8 billion, 45.2% more than for the same period in 2006. Results were boosted by a recovery in exports -- revenues from which were up 48% -- as well as a good domestic market performance with sales 43.2% higher.
Cash generation as measured by EBITDA (operating earnings before financial expenses, taxes and depreciation) was R$ 168.3 million, equivalent to an increase of 91.2% in relation to the first quarter 2006. EBITDA margin grew 8.3% to 11.1%, and close to the average historical margins for the Company. Operating income reached R$ 94.7 million, an increase of 260.4%.
The improvement in operating margins during the period is indicative of the success of the Company's strategies focused on increasing productivity, sales efficiency, and the reduction of costs and expenses, combined with the more buoyant export and domestic markets.
Business in the Company's leading export markets confirmed the tendency in improved demand already noted in the second half of 2006 following the downturn due to the avian influenza outbreaks. Between January and March, export volumes increased 38.8% against the first quarter of 2006.
Among the factors positively impacting Perdigao's performance in the domestic market were the dairy-processed product segment, which accounted for 20.5% of the revenues from this market and totaling R$ 211.4 million. In addition, growth in incomes resulted in increased domestic consumption, which was also favored by a decline in interest rates and low inflation.
Net income for the quarter was R$ 62.7 million, a year on year improvement of 503.4%, reflecting ongoing efforts to expand operations and diversify business platforms as part of the objective of diluting risk.
HIGHLIGHTS
R$ million
1Q07 1Q06 Change %
Gross Sales 1,784.7 1,229.1 45.2
Domestic Market 1,032.3 720.8 43.2
Exports 752.4 508.3 48.0
Net Sales 1,523.1 1,055.5 44.3
Gross Profits 411.1 249.4 64.8
EBIT 94.7 26.3 260.4
Net Income 62.7 10.4 503.4
EBITDA 168.3 88.1 91.2
Capex 125.0 95.4 31.0
Earnings per share R$* 0.38 0.08 386.7
* Consolidated Earnings per Share (in R$), excluding treasury shares. The free float for the 1st quarter 2006 used in this calculation was adjusted to reflect the April 2006 stock split.
For more information, contact Edina Biava, 55 11 3718-5301
