With a profit of R$594 million, BRF reverses losses and has a record quarter

A BRF (BRFS3), one of the largest animal protein and processed food companies in the country, ended the first quarter of the year with a net profit of R$594 million. It was the second consecutive quarter in the black, and the result reversed a net loss of R$1 billion in the same period of 2023.

Earnings before interest, taxes, depreciation and amortization (Ebida) reached R$2.1 billion from January to March, the best ever recorded by the company. The Ebitda margin reached 15.8% and free cash generation reached R$844 million, the best for a first quarter in the last three years.

BRF saw its quarterly net revenue record modest growth of 2.3% compared to the same period last year. Between January and March 2024, it was R$13.4 billion.

To a large extent, the performance of the foreign market boosted BRF’s results. The recovery in prices in practically all markets contributed to the progress, especially in the Gulf countries, Turkey and Africa, which saw an increase in demand as a result of Ramadan.

According to Miguel Gularte, CEO of BRF, the opening of new international markets has allowed the company to seek the best prices for product allocation. In the first quarter alone, BRF gained 25 new export licenses.

The executive highlighted that the drop in production costs and improvements in operational efficiency, such as reductions in chicken and pig mortality rates and gains in logistics, allowed the capture of R$438 million in efficiency between January and March.

With two consecutive quarters of profit, BRF is now working to close the year in the black. Since 2021, the company has not ended a 12-month cycle with a profit.

“We are working towards this, creating the conditions for it to happen and, if it happens, it should not be considered a surprise for management or the market”, said Fabio Mariano, CFO of BRF.

Rains in Rio Grande do Sul

The rains that hit Rio Grande do Sul had a moderate impact on BRF’s operations. The only unit that interrupted activities, in Lajeado, started working again this Tuesday. “Absenteeism data during this period of crisis is lower than the company average,” said Gularte.