BRF Reports Strong Start to 2025 with Expanded Food Sales and Production Plans

BRF, Brazil’s leading meat processor, reported that food sales exceeded expectations early in 2025, with plans to expand processed food production. The company achieved a notable fourth-quarter profit increase despite stock price declines due to missed market expectations. Positive conditions for protein prices are anticipated, enhancing operational efficiencies for future growth.

SAO PAULO (Reuters) – The Brazilian meat processor BRF has announced that food sales in Brazil surpassed projections for the first two months of 2025. The company’s executives have expressed intentions to expand the production of processed foods in response to the heightened demand.

CEO Miguel Gularte commented on the company’s positive start to the year, emphasizing volume growth and market diversification while acknowledging that there are cost challenges ahead.

As of Wednesday, BRF reported a fourth-quarter net profit of 868 million reais ($149.33 million), reflecting an increase of 15% compared to the same quarter in the previous year. This strong performance marked the best annual result in the company’s history.

Despite this success, BRF’s shares experienced a decline of 8.8% during mid-morning trading due to investors reacting negatively to results that missed market expectations, as noted by a Bradesco analyst. CFO Fabio Mariano remarked on the promising outlook for protein prices, indicating a favorable balance between supply and demand for chicken in particular.

In response to the increased demand for processed foods in Brazil, BRF has been able to improve its operational efficiencies by reducing idle capacity within its facilities. This progress has positioned the company to allocate resources effectively towards expansion efforts in the processed and frozen food markets.

In conclusion, BRF is experiencing robust food sales and intends to enhance its production capabilities in response to strong market demand. Despite some stock price fluctuations due to missing market expectations, the company recorded significant profit gains, and positive conditions for protein prices are anticipated. Overall, BRF is well-positioned for future growth as it focuses on processed food expansion.

Original Source: money.usnews.com