BRF, Brazil’s leading meat processor, reported exceeding food sales expectations in early 2025. The company plans to expand its processed food production to meet strong demand. Despite a record fourth-quarter profit, BRF’s stock declined as investors reacted to results not meeting market forecasts. CFO Mariano indicated a positive market outlook for protein pricing and operational improvements.
BRF, a prominent meat processor in Brazil, reported a strong start to 2025, with food sales surpassing initial expectations in January and February. The company’s executives stated their intention to boost processed food production to capitalize on increased market demand. CEO Miguel Gularte commented on the positive market conditions and expressed confidence in addressing existing cost challenges while expanding operations.
In its fourth-quarter earnings report, BRF announced a net profit of 868 million reais ($149.33 million), marking a 15% increase from the same period the previous year and achieving a record annual result. Despite this success, BRF’s stock experienced a decline of up to 8.8% during trading, as analysts noted the quarterly results fell short of market forecasts.
CFO Fabio Mariano highlighted a favorable outlook for protein pricing, noting a balance between supply and demand, particularly for chicken. In 2023, the meat industry faced challenges due to a global oversupply of chicken, affecting the market dynamics. BRF’s operations include pork and chicken processing, serving both local and international markets, including exports to China and the Middle East.
Furthermore, Mariano emphasized that growing demand for processed foods has decreased idle production capacity at BRF. This improvement in operational efficiency enables the company to allocate resources toward expansion, specifically in the processed and frozen food sectors.
BRF has demonstrated robust early 2025 sales driven by strong demand for processed foods, leading to increased production plans. Despite record profits, market reactions were mixed due to missed expectations in quarterly results. Enhanced operational efficiency and favorable protein pricing outlooks will support BRF’s future growth initiatives in the processed food market.
Original Source: money.usnews.com
