PERDIGÃO EXCEEDS R$ 13 BILLION IN SALES
Performance of sales and new businesses sustain the company's good
operating performance
In a challenging year, Perdigão become the market leader in the
Brazilian food sector, ending the period by reporting a (very) good operating
performance and complete absorption of new businesses, so underpinning its
solid financial position.
Perdigão's gross sales in 2008 reached R$ 13.2 billion, a growth of 69%
compared with a year earlier. This result reflects good performances in
domestic and export markets, both of which reported an increase in sales
volume and revenue terms, combined with the consolidation of the businesses
acquired by the Company.
In the period, gross profits amounted to R$ 2.8 billion, a year-on-year
improvement of 47%. EBITDA reached R$ 1.2 billion, an increase of 44.4%
over 2007 thanks to strict cost control ? helping to offset significant increases in
raw material prices -, a reduction in expenses and a better product mix largely
accounting for the 48.7% share of processed products in total sales.
Net income for the year of R$ 54.4 million was 83% lower than 2007 due
to the Real?s devaluation against the US Dollar on financial expenses, with no
cash disbursement, to a portion of the goodwill on acquisitions, recognized for
the year, and to the effects of production adjustments and optimization.
Exports rose 58% in revenues and 34.8% in volume. Overseas sales
were spearheaded by the meats business, which representing 97.3% of the
total, with the Middle East, Far East, Eurasia and Europe, the leading export
markets.
Gross sales to the domestic market reported an increase of 76.6%. Sales
volume increased in all segments of the business, meats by 26.3%, dairy
products, 305.7% and other processed products, 69.6%. The participation of
domestic business as a percentage of total net sales was 56.3%.
In 2008, Perdigão concluded a cycle of major investments that will
ensure growth momentum of its businesses and in its profitability over the next
few years. Investments registered a growth of 179.4% in relation to the fiscal
year 2007 out of a total R$ 2.4 billion, R$ 1.8 billion was invested in the
acquisitions of Eleva, Plusfood and Cotochés.
The remaining R$ 628.4 million was expended on the expansion and
modernization of lines at several different units of the company as well as new
projects, key among which are the construction of the Distribution Center in
Embu (SP) and the dairy products plant at the agroindustrial complex in Bom
Conselho (PE).
NUMBERS FOR 2008
R$ million
2008 2007 % Change
Gross Sales 13,161 7,789 69%
Domestic Market 8,104 4,589 77%
Exports 5,057 3,199 58%
Net Sales 11,393 6,633 72%
Gross Profits 2,759 1,873 47%
Gross Margin 24.2% 28.2% -
EBIT 709 504 41%
Net Income 54 321 (83%)
Adjusted Net Income 155 335 (54%)
Adjusted Net Margin 1,4% 5,1% -
EBITDA 1,159 803 44%
EBITDA Margin 10.2% 12.1% -
Capex 2,396 857 179%
Earnings per share R$* 0.26 1.73 (85%)
* Consolidated Earnings per Share (in R$) excluding treasury stock
EXPORTS
Meat exports grew 54% in revenues and 32.9% in volume compared
with fiscal year 2007. The increase in volumes of processed product sales in this
segment was 25.5%, these figures including Plusfood?s activities.
Exports of dairy products totaled R$ 127.8 million. Shipments amounted
to 15.8 thousand tons, largely powdered milk and butter. Processed products
represented 22% of international sales, a growth of 38.8% in revenues and
27.4% in volumes.
The company has been adjusting its export business to partially offset
the narrower margins resulting from a disproportional increase in costs of the
leading inputs in relation to 2007. Average FOB prices in 2008 increased in US
dollars by 24.7%.
However, average meat prices in Reais rose 16%, bearing in mind that
the Real appreciated by a year-on-year in average compared with the US
dollar. Average production costs were 18.7% above 2007 levels.
DOMESTIC MARKET
Perdigão's domestic sales amounted to R$ 8 billion, of which 52.4%
came from the meat business. Elaborated/processed meat products increased
11.3% in volume.
However, in-natura products jumped 142.5% in sales and 169.6% in
volume. Margins were narrower due to the greater participation of poultry and
pork in company sales following the merger of the Eleva business together with
increased production costs during the year, influenced by key raw material
prices.
Dairy products represented 34.6% of domestic sales, registering growth
of 237.4% in revenue terms. Of domestic market business, processed products
reported increases of 89.5% and 64.5%, respectively in sales and volume.
Milk sales encompassing the long life (UHT) and pasteurized product
together with powdered milk business rose 590% in volume, a reflection of
Eleva and Cotochés mergers.
Perdigão ended the year with the following market share: specialty
meats - 25.7%; frozen meats - 35.5%; frozen pizza - 34.5%; ready to eat
pasta - 37.4%; processed dairy products - 14%; margarines - 18%.
BEST OPERATING RESULT OF THE YEAR IN THE 4TH QUARTER
With gross sales 57% up on the same period for the preceding period,
Perdigão posted the best operating result of the year in the fourth quarter
2008. EBITDA growth was 93%, reaching a 15.2% margin against 12.5% in
2007.
The company's total sales volume rose 56.8% between October and
December last year. Domestic market sales rose 60.8% - an increase of 16,9%
for meats and 321.8% for dairy products - and sales exceeded R$ 2 billion.
Exports were up 51% in revenues during the quarter. This was a
particularly positive performance in the context of falling international prices
during the period and logistical problems due to flood damage at the ports used
by Perdigão in the state of Santa Catarina.
The company reported a net loss of R$ 20 million in the quarter due to
the recognition of a portion of the goodwill on acquisitions, the currency
translation effect on financial expenses (R$ 318 million, although with no cash
disbursement) and adjustments of production processes, reduction in costs and
inventory destined to export market. Ignoring the amortized portion of goodwill,
the net result would be R$ 8 million in the final quarter of 2008.
4TH QUARTER NUMBERS
R$ million
4Q2008 4Q2007 % Change
Gross Sales 3,576 2,276 57%
Domestic Market 2,278 1,417 61%
Exports 1,298 859 51%
Net Sales 3,058 1,922 59%
Gross Profits 912 556 64%
Gross Margin 29.8% 28.9% -
EBIT 312 156 100%
Net Income (20) 98 -
Adjusted Net Income 8 98 -
Adjusted Net Margin 0,3% 5.1% -
EBITDA 465 240 93%
EBITDA Margin 15.2% 12.5% -
Capex 116 291 (60%)
Earnings per share R$* (0.10) 0.53 -
* Consolidated Earnings per Share (in R$) excluding treasury stock
São Paulo, March 23 2009.