BRF'S Second Quarter Profits Grow 70%

ITAJAI, Brazil, Aug. 14  /PRNewswire-FirstCall/ -- BRF - Brasil Foods (NYSE:PDA) (the new corporate denomination of Perdigao) reported a second quarter 2009 net income of R$ 129 million, a 70% rise on the same quarter in 2008 in spite of a continued adverse trading environment, particularly for exports.

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A significant recovery in international markets, albeit slow, together with domestic market performance, both contrived to produce a slight improvement in quarter-on-quarter operating margins, although a sharp appreciation of the Real against the US dollar has worked against this operational result.

While revenues from exports increased by 5% over the first quarter of 2009, domestic markets were notable for a strong showing in the dairy products segment with increased demand for fluid milk products.

Gross sales amounted to R$ 3.1 billion in the second quarter, 4% down on the same period for the preceding year, and gross profits, at R$ 593 million, were 5% lower.

                         NUMBERS FOR THE QUARTER

                                       R$ million
                                 2Q09              2Q08              Change
  Gross Sales                   3,124             3,251                (4%)
  Domestic
   Market                       1,917             1,992                (4%)
  Exports                       1,207             1,259                (4%)
  Net Sales                     2,703             2,833                (5%)
  Gross Profits                   593               625                (5%)
  Gross Margin                  21.9%             22.0%                 -
  EBIT                             12               135               (91%)
  Net Income                      129                76                70%
  Net Margin                     4.8%              2.7%                 -
  EBITDA                          133               233               (43%)
  EBITDA Margin                  4.9%              8.2%                 -
  Earnings per
   share*                        0.63              0.37                 -



(*)Consolidated earnings per share (in R$), excluding shares held as treasury stock.

FIRST HALF GROSS SALES SURPASS R$ 6 BILLION

In the first half of 2009, the Company reported gross sales of R$ 6.16 billion, representing a positive variation of 1%, driven by growth of 2% in the domestic market, which generated R$ 3.8 billion in sales. Exports remained stable in relation to the same comparable period in 2008.

Reduced export flows -- which caused an increase in production costs and commercial expenses -- squeezed BRF's margins. Other contributing factors were the abrupt decline in prices in the overseas market and the diversion to domestic consumers of products destined for export.

                            FIRST HALF NUMBERS

                                       R$ million
                                 1H09              1H08          % Change
  Gross Sales                   6,160             6,098              1%
  Domestic
   Market                       3,805             3,735              2%
  Exports                       2,355             2,363             (0%)
  Net Sales                     5,306             5,295              0%
  Gross Profits                 1,128             1,161             (3%)
  Gross Margin                  21.3%             21.9%              -
  EBIT                             16               226            (93%)
  Net Income                      (97)              127               -
  Net Margin                    (1.8%)             2.4%               -
  Adjusted Net
   Income                          35               127            (72%)
  Adjusted Net
   Margin                        0.7%              2.4%               -
  EBITDA                          250               420            (40%)
  EBITDA Margin                  4.7%              7.9%               -
  Earnings per
   share *                      (0.47)             0.61               -



(*) Consolidated earnings per share (in R$), excluding shares held as treasury stock. 

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DATASOURCE: BRF - Brasil Foods



CONTACT: Susana Yamamoto, Brasil Foods, +011-55-11-3718-5791 



Web site:  http://www.perdigao.com.br/ 

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