November 11, 2020
BRF posts Q3 profit above forecast driven by strong domestic performance
According to a securities filing, Brazilian meatpacker BRF posted a third-quarter profit thanks to strong domestic performance above estimations, Reuters reported.
BRF posted a BRL 218.7 million (~US$40.61 million; BRL 1 = US$) profit compared to Refinitiv data analysts' average forecast of BRL 203.15 million (~US$ )
The company said it net revenue increased 17.5% to BRL 9.9 million, as it raised its products' average price. BRF's processed food and meats sales volume was 0.7% up in the quarter, reaching 1.1 million tonnes.
More than half of its sales came from the domestic market where its net revenue increased 21%. The Brazil-based company is the biggest exporter of chicken in the world.
The Brazilian government channeled cash payments to the public during the pandemic for food expenditure, which meant BRF could pass on higher grain prices to consumers. This offset increased livestock feed prices and expenses related to COVID-19.
BRF's international net revenue was 13.5% up, however, pandemic-related production adjustments hampered operations. BRF said the company's gross profit and margins were affected when speaking of pandemic-related problems related to its export business.
BRF posted 173,000 tonnes of sales to the halal, which hasn't changed much from previous reports as Saudi Arabia maintained its import ban.
The company said its exports' profitability were also affected by increased grains costs and other dollar-denominated expenses.