BRF announced that food sales in the first two months of 2025 exceeded expectations, prompting plans for production expansion. The company reported a fourth-quarter profit of 868 million reais, a 15% increase from the previous year, yet faced a decrease in stock value due to missed expectations. CFO Fabio Mariano expressed a positive outlook for protein prices, indicating improving operational efficiency due to rising demand in processed foods.
On Thursday, BRF, a prominent meat processor in Brazil, announced that it had surpassed food sales expectations in the first two months of the year, prompting plans for expanded production of processed foods to meet high demand. Miguel Gularte, the CEO of BRF, acknowledged that while challenges remain regarding costs, the company has commenced 2025 on a strong note with both volume and market diversification.
In the company’s quarterly report, BRF revealed a fourth-quarter net profit of 868 million reais (approximately $149.33 million), marking a 15% increase from the previous year. This annual result is noted as the company’s best performance historically. However, BRF’s stock faced a decline of up to 8.8% as investors reacted to results that fell short of market expectations, as noted by an analyst from Bradesco.
BRF’s CFO, Fabio Mariano, expressed optimism about the protein market, highlighting a favorable balance between supply and demand for chicken amid prior oversupplies. The company, which processes both pork and chicken, serves the domestic market as well as exports to global regions including China and the Middle East.
Mariano further indicated that the rising demand for processed foods has substantially decreased idle capacity within BRF’s operations, thereby enhancing overall operating efficiencies. This improvement enables the company to allocate resources effectively towards expansion projects, particularly in the processed and frozen food segments.
In conclusion, BRF’s strong start to 2025 reflects robust food sales performance, despite facing some cost hurdles. The company’s record fourth-quarter profit and optimistic market outlook suggest potential for continued growth, particularly in the processed foods sector. However, market responses to quarterly results indicate challenges in meeting investor expectations.
Original Source: www.marketscreener.com
