Brazil's BRF ends seven-quarter losing streak, earns $165.26 million in Q4 (updated)

BRF SA

26/02/2024 22:57

(Adds details of earnings release)
    By Ana Mano
       SAO PAULO, Feb 26 (Reuters) - Brazilian food processor
BRF SA  BRFS3.SA  on Monday reported net income of 823 million
reais ($165.26 million) for the fourth quarter of 2023, the
first gain after seven consecutive quarters of losses, according
to an earnings statement.
    Analysts had predicted net income of 339.57 million reais
for BRF, which makes pork and poultry products.
        Adjusted earnings before interest, tax, depreciation and
amortization, a measure of operating income known as EBITDA, was
1.9 billion reais, above the consensus of analysts expectations
of 1.79 billion reais. 
        Factors contributing to the positive performance include
a sharp drop in the price of corn, a key feedstock ingredient. 
  
        A recovery of export markets and 66 new authorizations
for BRF export plants also helped the company "to end the year
better than it started," CEO Miguel Gularte said in comments
about results.
  
        In spite of a strong fourth quarter, BRF lost 1.87
billion in 2023, marking the second consecutive yearly loss for
the world's largest chicken exporter. 
  
        Still, BRF said higher fresh meat prices drove a return
of the double-digit EBITDA margins in the final quarter,
referring to the international segment.  
  
        The company added profitability rose across geographies
and highlighted market share gains in the Gulf region, a key
market where it sells "halal" products, which are produced
according to Muslim dietary requirements.
  
        The Sadia and Banvit brands remain market leaders in its
halal segment, BRF said.
  
        In Brazil, the company posted EBITDA margin of 15.6%,
higher than the 9.1% recorded in the same quarter of the
previous year.
  
        BRF said net sales in the fourth quarter were 14.4
billion reais, 2.3% below the fourth quarter of 2023.
  
        In the whole of 2023, BRF presented reported EBTIDA of
4.7 billion reais, 15% higher than 2022 despite a global chicken
glut, BRF said.  

     

($1 = 4.9799 reais)

 (Reporting by Ana Mano; Editing by Steven Grattan)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
+55-119-4470-4529; Reuters Messaging:
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