BRF reports higher-than-expected food sales in early 2025, plans to boost processed food production. The company achieved a historical net profit in Q4 2024 but faced a stock price drop due to missed market expectations. An optimistic protein pricing outlook is noted despite previous oversupply issues.
In a recent announcement, Brazilian meat processor BRF reported that food sales in the initial two months of the year surpassed expectations. The company’s executives indicated plans to increase production of processed foods to meet burgeoning demand in the market. The CEO, Miguel Gularte, acknowledged the strong start to 2025 while also recognizing existing cost challenges, stating, “We are prepared.”
BRF, the leading global chicken exporter, revealed a fourth-quarter net profit of 868 million reais ($149.33 million) for the previous year, marking a 15% increase compared to the same quarter in 2022, setting a record annual performance for the company. However, BRF’s shares declined by as much as 8.8% mid-morning after investors reacted to results that fell short of expectations, as noted by a Bradesco analyst.
CFO Fabio Mariano highlighted an optimistic outlook for protein prices, indicating a favorable supply-demand balance for chicken among other proteins. In 2023, the industry faced challenges due to oversupply issues in the global chicken market. BRF’s operations include processing both pork and chicken while catering to domestic needs and exporting to regions including China and the Middle East.
Mariano also pointed out that the rising demand for processed foods has decreased idle capacities in BRF’s facilities, consequently enhancing operational efficiency. This improvement will provide the company with the opportunity to invest in expansion projects, particularly within the processed and frozen food sector.
BRF’s recent performance illustrates a robust start to 2025 with food sales exceeding initial expectations. Despite facing some challenges with profitability that adversely affected stock prices, the company is optimistic about future growth in processed food demand and operational efficiency. The strategic emphasis on expanding processed food production positions BRF favorably against market dynamics in the protein sector.
Original Source: www.marketscreener.com
