BRF reports that food sales in Brazil have exceeded expectations during the first two months of 2025, prompting plans to boost processed food production. The company achieved a historic net profit in the fourth quarter of 2024 but experienced a decline in stock due to investor reactions to results that did not meet estimates. Positive market conditions for protein prices signal growth opportunities for BRF moving forward.
The Brazilian meat processing company, BRF, announced on Thursday that its food sales have surpassed expectations in the initial months of the year. The firm aims to increase production of processed foods to capitalize on the robust demand within the market. CEO Miguel Gularte expressed optimism regarding the start of 2025, highlighting the company’s strong performance in terms of volume and diversification despite facing cost challenges.
In its fourth-quarter earnings report, BRF revealed a net profit of 868 million reais ($149.33 million), marking a 15% increase from the same period the previous year, and representing the company’s best annual result on record. However, the stock saw a decline of up to 8.8% due to market analysts indicating that the results did not meet expectations, showcasing investor caution
CFO Fabio Mariano remarked on the favorable outlook for protein prices, suggesting a harmonious balance between supply and demand for chicken products. The company intends to address past issues, such as the global oversupply of chicken experienced by many meat producers. BRF processes both pork and chicken, servicing domestic needs while exporting to international markets, including China and the Middle East.
The CFO emphasized that the rising demand for processed foods in Brazil has effectively reduced idle capacities at BRF plants, enhancing operational efficiencies. This situation establishes a foundation for the company to direct resources into expansion endeavors, particularly in the processed and frozen foods sector.
BRF’s strong performance in early 2025 highlights its ability to adapt to market demands while navigating cost challenges. The company’s record annual profit underscores its position as a leader in the meat processing sector, despite recent setbacks in stock performance. BRF aims to enhance its operational capacities and expand production in response to the growing appetite for processed foods.
Original Source: money.usnews.com
