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. (Logo: http://www.newscom.com/cgi-bin/prnh/20090710/SPF002LOGO ) 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. http://www.newscom.com/cgi-bin/prnh/20090710/SPF002LOGO http://photoarchive.ap.org/ 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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