BRF Reports Strong Early 2025 Food Sales and Plans Expansion in Processed Foods
BRF reported that food sales exceeded expectations in early 2025, prompting plans for production expansion due to robust demand. The company achieved a historic annual profit despite temporary stock declines after quarterly results fell short of market anticipations. Positive trends in protein pricing and improved operational efficiencies support BRF’s strategy moving forward.
BRF, a prominent Brazilian meat processor, announced that food sales in the first two months of 2025 surpassed expectations, prompting plans to expand production of processed foods in response to strong demand. CEO Miguel Gularte remarked, “Regarding 2025, we started the year quite well both in terms of volumes and market diversification.” Despite facing cost challenges, he noted that the company is well-prepared to navigate these issues.
As the largest chicken exporter globally, BRF reported a fourth-quarter net profit of 868 million reais ($149.33 million), reflecting a 15% increase from the same quarter last year and marking the company’s best annual results to date. However, BRF’s stock suffered a decline of up to 8.8% during trading, attributed to these results missing market expectations, as identified by a Bradesco analyst.
The Chief Financial Officer, Fabio Mariano, noted a favorable outlook for protein prices, emphasizing a balance between supply and demand, particularly in the chicken sector. In 2023, the company faced challenges due to an oversupply of chicken on a global scale. BRF, which processes pork and chicken, caters to both domestic and international markets, including China and the Middle East.
Mr. Mariano further highlighted that increased demand for processed foods has decreased idle capacity within BRF’s facilities, leading to improved operational efficiencies. The company is now poised to channel resources into expansion projects, particularly within the processed and frozen food categories.
In summary, BRF’s strong initial performance in 2025 indicates positive market trends and effective operational strategies. The company’s expansion plans in processed foods reflect a proactive approach to meet demand, despite certain market challenges. Overall, BRF remains optimistic about its growth trajectory and pricing dynamics in the protein market.
Original Source: money.usnews.com
