BRF announced increased food sales in Brazil during the first two months of the year, prompting plans for expanded processed food production. Despite achieving a record annual profit, BRF shares fell due to unmet market expectations. The company anticipates a stable protein market and aims to utilize improved efficiencies from rising demand to bolster growth.
In a recent announcement, BRF, a publicly traded meat processor, reported that food sales in Brazil had surpassed expectations during the initial months of the year. The company’s executives indicated plans to expand processed food production to leverage the heightened demand. “Regarding 2025, we started the year quite well both in terms of volumes and market diversification,” stated CEO Miguel Gularte during a conference call discussing the fourth-quarter earnings. He acknowledged the existence of cost challenges but expressed confidence in readiness to tackle them.
As the leading chicken exporter globally, BRF reported a fourth-quarter net profit of 868 million reais (approximately $149.33 million), reflecting a 15% increase compared to the same quarter the previous year. This annual outcome marked BRF’s best performance on record. Despite this success, BRF’s shares experienced a decline of 8.8% amid trading due to investor concerns, as analysts noted that the results did not meet market expectations.
The outlook for BRF appears optimistic, particularly in the protein market, despite past difficulties with chicken oversupply. With rising demand for processed foods leading to increased operational efficiency, BRF aims to capitalize on growth opportunities. The company’s focus on expanding production aligns well with current market trends and consumer needs, positioning it favorably for future success.
Original Source: www.marketscreener.com
