February 23, 2022

BRF turns a profit in final quarter of 2021

Brazil-based meatpacker BRF SA has announced it has turned a profit in the final quarter of 2021, securing a third consecutive year in the black for the company, Reuters reported.

In the company's earnings statement, BRF said it gained a BRL 932 million (~US$184.4 million; BRL 1 = US$0.20) gain in the fourth quarter of last year, 3.3% year-on-year.

The company also reported a nearly 20% increase in net revenue to BRL 13.7 billion (~US$2.7 billion) in the same quarter, but the company notes that it was affected by cost pressures and declining consumer confidence in Brazil where it derives most of its sales by volume.

BRF said the food industry remains affected by soaring commodity prices and supply chain disruptions.

Despite these factors, the company posted a BRL 437 million (~US$86 million) profit for 2021. This was 68.5% lower compared to 2020.

BRF said both pork export volumes and prices in sales to China declined in the fourth quarter of 2021, as China aims to boost local production and there is a drop in consumption caused by the pandemic.

This impacted the segment's gross margins, according to BRF, but was largely offset by an increase in dollar pricing for items exported to Japan and South Korea.

The company also said volumes and prices rose in Halal sales both in Gulf countries and in Turkey, with revenue in those markets up 33% and 11% respectively.

-      Reuters