Articles in this document:

· Sadia Profit Rises on Higher Foreign, Domestic Demand

· Brazil Meatpacker Sadia To Buy Back Up To 5 Shrs >SDA

Sadia Profit Rises on Higher Foreign, Domestic Demand

By Carlos Caminada

Bloomberg

July 30, 2008

(Bloomberg) -- Sadia SA, Brazil's second-biggest foodmaker, said second-quarter profit rose 9.6 percent as higher demand boosted sales and allowed the company to increase prices.

Net income rose to 119.9 million reais ($76.8 million) from 109.4 million reais a year earlier, Concordia, Brazil-based Sadia said today in a statement on the Brazilian stock regulator's Web site. Net sales rose 28 percent to 2.58 billion reais.

Stronger demand for Sadia's products, such as poultry, smoked ham and chicken nuggets, allowed it to boost prices, said Denise Messer, an analyst at Brascan Corretora. The increase made up for rising costs of corn and soybeans to feed chickens.

``The market is pretty heated in terms of sales and prices, both in the domestic and foreign markets,'' Messer said in a report on July 24. Sadia also has sought to increase exports of higher-value products, such as chicken parts rather than the entire bird, she said.

Net income topped the 107.4 million reais average estimate of seven analysts surveyed by Bloomberg.

Rising demand in Brazil and abroad will allow Sadia to raise prices further to make up for increasing feed costs, Chief Financial Officer Welson Teixeira Jr. said.

``Demand remains strong,'' Teixeira said on a conference call after the results were released.

Sadia may buy Brazilian beef producers as demand for the meat increases and the company uses more beef in its products, Teixeira said. The acquisitions may replace plans to expand Sadia's existing abattoirs and build new ones because a shortage of cattle in Brazil discourages investments in new capacity, he said.

Sadia rose 45 centavos, or 4.1 percent, to 11.51 reais in Sao Paulo trading. The shares are up 26 percent from a year earlier, compared with a 9.9 percent rise for Brazil's benchmark Bovespa index.

bloomberg.com

Brazil Meatpacker Sadia To Buy Back Up To 5 Shrs >SDA

DOW JONES NEWSWIRES

July 31, 2008 6:59 a.m.

SAO PAULO (Dow Jones)--The board of Brazilian meatpacker Sadia SA (SDA), late Wednesday approved a buyback program of up to 5 million outstanding common shares, Sadia said in a statement.

The company's shares trade on the Sao Paulo Stock Exchange, or Bovespa. Sadia has 112.17 million common shares outstanding.

Sadia said the program would be effective over the next 365 days.

The company reported a second quarter net profit of 119.9 million reals ($76 million), up from BRL109.4 million in the year ago period.

On Wednesday, Sadia's common shares closed up 2.74% at BRL11.60 on the Sao Paulo Stock Exchange, the Bovespa.

-By Rogerio Jelmayer, Dow Jones Newswires

online.wsj.com