BRF reported favorable food sales in Brazil for early 2025, prompting plans to boost processed food production. CEO Miguel Gularte expressed confidence despite cost challenges, as the company achieved a historic profit in Q4. Nevertheless, shares fell due to unmet market expectations, while a positive outlook for protein pricing was noted. BRF benefits from efficient operations and expanding demand in processed foods.
SAO PAULO (Reuters) – Brazilian meat processor BRF recently reported that food sales in Brazil exceeded expectations in the first two months of this year. The company intends to enhance the production of processed foods in response to robust demand, as articulated by executives during a conference call.
CEO Miguel Gularte remarked, “Regarding 2025, we started the year quite well both in terms of volumes and market diversification. There are cost challenges, but we are prepared.” This positivity follows BRF’s announcement of a record fourth-quarter net profit of 868 million reais ($149.33 million), representing a 15% increase compared to the same quarter last year.
Despite this positive performance, BRF’s shares experienced a decline of 8.8% in mid-morning trading after results did not align with market expectations, as noted by a Bradesco analyst. The company’s CFO, Fabio Mariano, elaborated on the favorable outlook for protein prices, citing a balanced supply-demand relationship, particularly for chicken which had faced oversupply issues in 2023.
BRF, which processes pork and chicken for both domestic and international markets including China and the Middle East, has benefited from increased demand for processed foods. Consequently, the reduction of idle capacity within BRF’s operations has led to enhanced operational efficiencies, enabling the company to allocate resources towards expansion, particularly in the processed and frozen food sectors.
In summary, BRF has demonstrated strong performance in food sales within Brazil, leading to strategic plans for increasing processed food production. Despite facing some market backlash due to unexpected quarterly results, the company’s leadership remains optimistic about future profitability and market conditions for protein prices. This forward-looking approach reflects BRF’s adaptability and commitment to meeting evolving consumer demands.
Original Source: www.marketscreener.com
