BRF's Revenues Rise to R$ 7.2 Billion in the Third Quarter 2012

       BRF's Revenues Rise to R$ 7.2 Billion in the Third Quarter 2012

PR Newswire

SAO PAULO, Nov. 12, 2012

SAO PAULO, Nov. 12, 2012 /PRNewswire/ -- BRF net sales reached R$ 7.2 billion,
an increase of 14.3% over the same period of last year and 5.1% higher than
the second quarter of 2012. The EBITDA margin was 7.9% of company's net sales
and EBITDA total amount of R$ 565 million.

It is worth highlighting the fact that during the third quarter, the company
fulfilled the agreement signed with the Brazilian anti-trust agency (CADE) and
concluded one of the most important stages of the merger process. As expected
by the company, this transitory process combined with the world economic
situation impacted the results in the quarter. 

Nevertheless, BRF achieved very positive revenues in its operating segments in
the third quarter, with an expansion of 7.4% on the domestic market, 26% in
exports, 4.8% in dairy products and 8% in food service. There was an increase
of 4.3% in sales volume which amounted to 1.6 million tons.

The price increase adjustments partially reduced the pressure from the costs
of the main raw materials on the operating margins in the third quarter.
However, the impacts were still significant as the costs of corn, for example,
increased by as much as 26.3% in the period over the second quarter of this

The EBITDA margin fell by 3.6 percentage points in the quarter. Gross profit
amounted to R$ 1.5 billion, a decline of 5%, and net income was R$ 90.9
million, 75% lower than the third quarter of 2011.

During the year, 283 products were launched in order to expand the portfolio,
to reposition brands and/or categories and adding value. There was 115 product
launches in the third quarter, distributed as follows: Food Service – 18,
domestic market – 51; export market – 31; and dairy products segment – 15.

Third Quarter Earnings
R$ million
                               2012         2011          Ch. %
Net Revenues                   7.192        6.262         14
Gross Income                   1.526        1.606         (5)
Gross Margin                   21,2%        25,50%        (4.3 p.p.)
EBIT                           232          455           (49)
Net Income                     91           365           (75)
Net Margin                     1,3%         5,80%         (4.5 p.p.)
EBITDA                         565          723           (22)
EBITDA Margin                  7,9%         11,50%        (3.6 p.p.)
Earnings per share*            0,1          0,42          (75)
*Earnings per share (in R$) consolidated, excluding shares held in treasury

SOURCE BRF - Brasil Foods S.A.

Contact: Ana Carolina Bastos, +55-11-2322-5037,
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