BRF Reports Strong Start to 2025 with Plans for Increased Production

BRF reported higher-than-expected food sales in early 2025, prompting plans to expand processed food production. CEO Miguel Gularte highlighted a positive market outlook, despite facing cost challenges. The company’s fourth-quarter profits were historically high, though stock prices fell due to unmet investor expectations. BRF aims to enhance operational efficiencies to support growth in the protein market.

BRF, a publicly listed meat processor in Brazil, has reported that food sales in the initial months of the year have surpassed expectations. The company is planning to enhance its production of processed foods to take advantage of growing demand within the market. CEO Miguel Gularte expressed optimism, stating, “Regarding 2025, we started the year quite well both in terms of volumes and market diversification. There are cost challenges, but we are prepared.”

Despite achieving a historically high net profit of 868 million reais ($149.33 million) in the fourth quarter, up 15% from the previous year, BRF’s stock fell by as much as 8.8% during trading. Analysts noted that these results did not meet market projections, indicating a disconnect between actual performance and investor expectations.

CFO Fabio Mariano communicated that BRF expects a favorable outlook for protein prices, underlining a balanced supply and demand, particularly concerning chicken. In contrast, 2023 had been challenging for meat companies due to global oversupply issues. BRF continues to process both pork and chicken for domestic sales and exports to markets such as China and the Middle East.

Mariano emphasized that the rise in demand for processed foods has resulted in reduced idle capacity at BRF’s facilities, thereby enhancing operational efficiency. This improvement positions the company to allocate resources toward expansion initiatives, particularly in the frozen and processed food segments.

In summary, BRF has demonstrated robust food sales in early 2025, prompting plans for increased production of processed foods to meet high demand. While the fourth quarter net profit was historically significant, investor reactions reflected concerns over expectations not being fully met. The company is strategically optimizing its operations and preparing for future growth in the protein sector, amidst a balanced supply-demand scenario.

Original Source: www.marketscreener.com