November 11, 2022

Brazilian meatpacker BRF SA reports US$26 million loss in third quarter

Major Brazilian meatpacker BRF SA announced a net loss of BRL 137 million (~US$26 million; BRL 1 = US$0.19) for the third quarter of the year, which did not meet analysts' expectations of a slim profit, due to increased debt expenses and interest rates, BOL News reported.

BRF net loss was down from BRL 277 million (~US$71 million) in the same period last year. The company exports poultry and swine to Latin America, Asia, Africa, and the Middle East.

Analysts estimated a profit of BRL 64.8 million (~US$12 million).

According to BRF, high interest rates reduce business profits by driving up the cost of debt. According to the report, interest on loans and financing totaled BRL 474 million (~US$88 million), a 25.3% increase from the previous year.

Adjusted BRF's earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at BRL 1.42 billion reais (~US$265 million), which was in line with the consensus estimate. 

The group's net revenue increased by 13.4% to BRL 14.05 billion (~US$2.6 billion), and its largest market, Brazil, saw a 6.6% increase to BRL 6.81 billion (~US$1.2 billion) in revenue.

Sales to China, Japan, and South Korea increased its margins, resulting in export revenue of BRL 6.54 billion (~US$1.2 billion), a 7.4% increase over the previous year.

-      BOL News