February 26, 2021

BRF SA posts Q4 net income higher than analysts' estimates

Major Brazilian meat processor BRF SA have reported a Q4 net income of BRL 902 million (~US$163.09 million; BRL 1 = US$0.18), higher than analysts' estimates thanks to strong China and domestic demand, Reuters reported.

The biggest chicken exporter in the world reported a 23.5% increase in net revenue for the quarter to BRL 11.4 billion (~US$2.06 billion), as the company raised average prices for its products domestically and internationally.

Analysts' estimated BRF's net profit to be BRL 572.03 million (~US$103.4 million), but the company's earnings before interest, tax, depreciation and amortization (EBITDA) matched analyst's projections of BRL 1.496 billion.

The company's overall sales volumes were 2.2% up year-on-year to 1.2 million tonnes. Most of its domestic sales were attributed to processed foods, while the company sells more fresh pork and chicken in the international market.

Similar to the company's Q3 performance, more than half of BRF sales come from Brazil where revenue increased 25.8%. The consumption of its more expensive food items offset higher grain prices and added costs related to the COVID-19 pandemic.

- Reuters