BRF registers R$22.4 million profit in 1st quarter, below expectations

RIO DE JANEIRO, BRAZIL – BRF reported net profit of R$22.4 (US$4.2) million in the first quarter 2021, the company said on Wednesday, May 12, a performance below the projections of analysts, who had expected R$112.7 million.

The result marked an improvement over the same period last year, when the company posted a R$38 million loss.

BRF said it sold about 1.1 million tons of food products in the period, a stable figure in year-on-year comparison. However, net revenue increased 18.4% to R$10.6 billion, driven in part by a 20% rise in prices.

Most of BRF’s sales occurred in Brazil, where the company is facing an increase in feed costs, which squeezed gross margins in the last quarter.

Brazil’s economic slowdown also pressured processed food sales, with BRF reporting a 20% drop in volumes in the segment compared to the previous quarter.

Internationally, BRF’s results were boosted by a 9.6% year-on-year growth in net revenues in the Asian market, which totaled R$1.45 billion. This helped offset a 3.1% drop in volumes sold in that market, the company said.

In China, the demand for BRF products remained heated for both poultry and pork, with a 9% growth in sales volume. On the other hand, the Asian markets remained depressed by the effects of the pandemic, BRF added.

According to the company’s quarterly financial report, earnings before interest, taxes, depreciation and amortization (EBITDA) reached R$1.234 billion in the period, close to market expectations, which pointed to R$1.218 billion.

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