BRF reported a third quarter 2013 net income of R$ 287 million, an increase of 216% in relation to 3Q12. Net margin showed a 2.5 percentage point improvement, reaching 3.8% in the period. The company reported gross profits of R$ 1.9 billion, 25% more than for the same period last year with gross margin increasing from 21.2% to 25.2%.
Consolidated net sales rose 5.4% to R$ 7.6 billion while adjusted EBITDA reached R$ 911 million, a year-on-year improvement of 61%. Adjusted EBITDA margin was 12% against 7.9% reported for the same period in 2012.
Among the factors contributing to this favorable performance are the results of operational and financial improvements introduced by the company and a gradual recovery in exports, with prices receiving a boost from the exchange rate. There was also a shift in the portfolio product mix towards higher value added and the inclusion of 41 new products during the quarter - all of which contributing to better margins.
With growth in cash generation and reduced leverage, results are in line with the Acceleration Plan which BRF announced in August with the aim of making the company a global benchmark in its segment of business.
During the quarter, BRF invested R$ 377 million, of which R$ 127 million in biological assets. These investments were largely dedicated to increasing production capacity, construction and expansion of units and production lines, automation projects, improvements in processes and in support activities.
Other highlights of the period were the financial trading volume in the company's equities which reached an average of US$ 80 million per day, 6% greater than 3Q12. BRF was also selected as a component of the new United Nations Global Compact index and for the second year running, the Dow Jones Sustainability Emerging Markets Index.
