UPDATE 1-Brazil food processor BRF posts 92 pct decline in quarterly profit
(Adds details on revenues and EBITDA)
SAO PAULO, July 28 (Reuters) - Brazilian food processor BRF SA reported a net profit of 31 million reais ($9.4 million) in the second quarter, down 92 percent from a year ago after soaring corn prices hit its poultry and pork operations.
Net revenues for Brazil's biggest poultry exporter rose to 9.8 billion reais in the April through June period, up from 9.0 billion reais a year ago.
Earnings before interest, taxes, depreciation and amortization fell to 944 million reais, down 31.5 percent from 1.38 billion reais in same quarter last year.
A drought over Brazil's main winter corn crop slashed output. Combined with record exports of the main animal feed ingredient over the past year due to a sharp depreciation in the real to the dollar drove local prices for the grain to record levels, throttling local pork and poultry industries.
The industry as a whole has trimmed 15 percent of its animal protein production capacity in recent months in response to the high feed costs that it has been only partially able to pass on to consumers.
A grinding recession, now in its second year, is also eating into local demand for processed meats.
Corn prices have fallen back from record highs earlier in the year but remain nearly double their levels a year ago. (Reporting by Reese Ewing; Editing by Sandra Maler and Leslie Adler)
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