BRF Reports 2025 Food Sales Exceeding Expectations Amid Expansion Plans

BRF’s early 2025 food sales have exceeded expectations, prompting plans to expand processed food production. CEO Miguel Gularte highlighted strong performance despite cost challenges. The fourth-quarter net profit reached 868 million reais, although shares fell due to missing market expectations. CFO Fabio Mariano noted a favorable outlook for protein pricing in light of demand improvements.

In a recent announcement, BRF, a significant player in Brazil’s meat processing sector, reported that food sales for the early part of 2025 have surpassed expectations. The company intends to increase production of processed foods to leverage the remarkable demand across the market, as expressed by CEO Miguel Gularte during a conference call focused on the fourth-quarter results.

“We started the year quite well both in terms of volumes and market diversification,” remarked Mr. Gularte, acknowledging ongoing cost challenges while affirming the company’s preparedness to meet them.

As the world’s leading chicken exporter, BRF disclosed an impressive fourth-quarter net profit of 868 million reais (approximately $149 million), marking a 15% increase from the previous year, which represents the company’s best annual performance to date.

Despite the positive results, BRF shares experienced a decline of 8.8% during mid-morning trading. Analysts attributed this drop to the company’s performance not meeting market expectations for the first time in several quarters, according to a report by Bradesco.

CFO Fabio Mariano articulated a favorable outlook for protein prices, indicating a well-balanced supply and demand dynamic, particularly for chicken. This follows a period in 2023 characterized by oversupply issues in the global chicken market.

BRF’s operations encompass both pork and chicken processing, catering to the domestic market while exporting to regions such as China and the Middle East. Mr. Mariano highlighted that the surge in demand for processed foods has alleviated idle capacity, enhancing operational efficiencies.

The current landscape enables BRF to channel resources into expansion initiatives, with a specific focus on the processed and frozen food segments, as they aim to meet growing consumer preferences.

In conclusion, BRF has revealed promising sales performance in early 2025, prompting plans for expanding their processed food production. Despite market challenges, the company remains optimistic about its operational efficiency and revenue potential in the protein sector, indicating a robust strategy to navigate evolving market conditions.

Original Source: www.marketscreener.com