UPDATE 1-BRF profit misses forecast on weak Brazil demand
* Inflation erodes domestic demand for poultry and pork
* Currency swing helps exports, but global growth weighs
SAO PAULO, July 29 (Reuters) - Brazilian processed foods maker BRF SA reported a lower-than-expected second-quarter profit on Monday due to weak domestic demand.
The company said in a market filing that demand in Brazil was hurt by high inflation and consumer caution about the short-term outlook for the economy. Inflation in the 12 months ended June 30 reached 6.7 percent, according to the IPCA consumer inflation index.
Net profit was 208.4 million reais ($92 million), up from 6.4 million reais a year earlier but well below analysts' average forecast of 360 million reais.
Earnings before interest, taxes, depreciation and amortization, a widely followed indicator of a company's cash flow known as EBITDA, rose 55 percent to 801 million reais but fell short of analysts' average forecast of 903 million reais.
The cost of goods sold rose 5.5 percent due to non-feed raw materials and labor costs. Feed costs, the company's biggest outlay, actually fell over the quarter, with corn down 19 percent from the first quarter and soy down 8 percent.
The appreciation of the dollar against Brazil's currency, the real, improved the company's results on sales abroad.
Export sales rose 19 percent from the first quarter to 3.4 billion. But compared with exports in the 2012 second quarter, pork revenues were down 16 percent and beef revenues fell 3.1 percent.
Economic growth in the company's three main export regions - the Middle East, Asia and the Americas - was either slowing or modest in the second quarter, which had an impact on overall exports that account for 46 percent of total sales for BRF.
The Brazilian real weakened about 10 percent against the dollar during the second quarter.