BRF, the largest chicken exporter globally, reported that its food sales exceeded expectations in early 2025. CEO Miguel Gularte expressed confidence in market conditions despite cost challenges. The company achieved a notable fourth-quarter profit, although its shares fell due to unmet market expectations. The CFO expects a positive outlook for protein prices and is focusing on expanding production in response to growing demand for processed foods.
SAO PAULO (Reuters) – The publicly traded meat processor BRF has reported that food sales in Brazil surpassed expectations during the initial months of the year. To leverage strong demand, the company is set to enhance its production of processed foods, according to remarks made by executives during a recent conference call.
CEO Miguel Gularte expressed optimism, stating, “Regarding 2025, we started the year quite well both in terms of volumes and market diversification.” However, he acknowledged the presence of cost challenges, affirming that the company is adequately prepared to address them.
As the largest chicken exporter globally, BRF announced a fourth-quarter net profit of 868 million reais (approximately $149.33 million), marking a 15% increase when compared to the same quarter of the previous year. The annual financial results were noted as the best in the company’s history.
Despite these positive results, BRF’s shares experienced a decline of up to 8.8% during mid-morning trading, as some investors reacted negatively due to the quarterly results not meeting market expectations, a sentiment echoed by a Bradesco analyst in a recent client note.
CFO Fabio Mariano conveyed a favorable outlook for protein prices, indicating a balanced supply-demand dynamic, particularly for chicken. This follows a period in 2023 where meat companies faced issues related to global chicken oversupplies.
BRF processes both pork and chicken, catering to the domestic market and exporting to regions such as China and the Middle East. In view of operational efficiencies, the CFO noted an uptick in demand for processed foods in Brazil, which has diminished idle capacity across BRF units.
This heightened demand is expected to support BRF’s expansion projects, particularly in the frozen and processed food sectors, allowing for better resource allocation towards these initiatives.
In summary, BRF’s recent performance indicates strong food sales growth in Brazil, prompting plans for increased production of processed foods. Despite a dip in share price following an earnings report that fell short of market expectations, positive profit results and a balanced supply-demand equation for protein suggest a robust future for the company. Overall, logistics improvements and operational efficiencies position BRF favorably for upcoming expansion.
Original Source: money.usnews.com
