Brazilian meat processor BRF reported food sales exceeding expectations in early 2025, with plans to expand processed food production. The company achieved a historic fourth-quarter net profit of 868 million reais, although shares fell due to market disappointment. Optimism remains for protein prices amidst increased demand for processed foods, leading to improved operational efficiencies.
In a recent statement, BRF, a prominent meat processor in Brazil, reported that its food sales in January and February 2025 surpassed initial expectations. With a focus on meeting growing demand, the company plans to boost production of processed foods. CEO Miguel Gularte remarked on the positive start to the year, emphasizing strong volumes and diversification in markets despite facing cost challenges.
BRF not only holds the title of the world’s largest chicken exporter but also reported a remarkable fourth-quarter net profit of 868 million reais ($149.33 million), a 15% increase from the previous year. Despite these positive financial developments, BRF’s stock declined by as much as 8.8%, reflecting investor disappointment over results that fell short of market expectations. A Bradesco analyst noted this as the first time in a while that BRF had presented results below anticipated figures.
BRF’s Chief Financial Officer, Fabio Mariano, expressed optimism regarding protein prices, forecasting a favorable balance in supply and demand, particularly for chicken. Following a challenging 2023 marred by global chicken oversupply, BRF has found that increased demand for processed foods has effectively reduced idle capacity at its production facilities, thereby enhancing operational efficiency.
This improved efficiency allows BRF to reallocate resources towards new expansion projects, focusing primarily on processed and frozen food offerings as a response to market demand.
BRF has demonstrated a solid start to 2025 with sales outperforming expectations and a record net profit in the fourth quarter. Despite experiencing a stock decline due to unmet market projections, the company remains optimistic about future protein prices and plans significant investments in expanding its processed food production. With a strategic focus on operational efficiency and market diversification, BRF seeks to capitalize on the evolving market demands.
Original Source: money.usnews.com
