July 29 (Bloomberg) -- BRF SA, the world’s largest meat processor by market value, climbed to the highest in seven weeks after earnings before items exceeded analysts’ estimates in the second quarter.
Shares rose 1 percent to 48.55 reais at the close of trading in Sao Paulo, the highest since June 7. Brazil’s benchmark Ibovespa index fell 0.4 percent.
Net income soared 33-fold to 208.4 million reais ($92 million), or 24 centavos a share, from 6.39 million reais, or 1 centavo, a year earlier, the Sao Paulo-based company said today. Its earnings before interest, taxes, depreciation and amortization, or Ebitda, of 910 million reais excluding some items beat the 841 million-real average of seven analysts’ estimates compiled by Bloomberg.
Earnings rose after prices for domestic meat product were raised by an average 18 percent, while costs to feed its chicken and pork fell, BRF said. Average soybean prices in Chicago fell 1.2 percent in the quarter, while corn remained almost unchanged.
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