BRF has reported strong food sales for 2025, exceeding expectations in early January and February. The company plans to expand its processed food production to meet the growing demand. Despite posting a historic profit for the fourth quarter, its shares faced a decline due to results that did not meet market expectations.
The Brazilian meat processor BRF reported that food sales in the initial months of 2025 surpassed projections. The firm plans to enhance the production of processed foods to capitalize on robust demand trends, according to executives during a conference call to discuss fourth-quarter earnings. CEO Miguel Gularte noted, “We started the year quite well both in terms of volumes and market diversification.” Despite facing cost challenges, the company is prepared to address them effectively.
In its latest reporting, BRF revealed a fourth-quarter net profit of 868 million reais ($149.33 million), signaling a 15% increase compared to the same quarter the previous year. This marks an historic annual result for the company. However, BRF shares experienced a decline of 8.8% as the market reacted to results that were perceived as below expectations, according to an analyst at Bradesco.
CFO Fabio Mariano expressed optimism regarding protein prices, citing a favorable balance between supply and demand in the chicken market. In 2023, the meat industry encountered issues stemming from global chicken oversupplies, yet BRF remains steadfast in its operations. The company processes pork and chicken, catering to domestic needs while also exporting to various regions, including China and the Middle East.
The growth in demand for processed foods in Brazil has effectively diminished idle capacity within BRF’s facilities, thereby enhancing overall operational efficiencies. This development paves the way for further resource allocation towards expansion projects, specifically in the processed and frozen food segments.
In conclusion, BRF’s optimistic outlook for 2025, backed by strong early sales, reflects its strategic focus on expanding processed food production. While the company recently recorded a historic annual profit, investor reactions highlight market sensitivities to performance expectations. The positive demand dynamics for protein products offer a promising scenario for future growth and operational development.
Original Source: www.marketscreener.com
