BRAZIL: BRF considering options for its dairy business
BRF examining options for dairy business
Brazilian food group BRF has indicated it is "examining strategic alternatives" for its dairy business.
In an announcement to the market late yesterday (26 February), BRF said it was mulling various options, including the establishment of partnerships or "partial sale".
BRF has improved the performance of its dairies unit by shifting the product mix away from UHT milk and focusing instead on value-added items. In its most recent quarterly update, the company said the strategy resulted in a 9.8% increase in third-quarter sales, which rose to BRL760m (US$323.3m), despite a 16% drop in volumes. For the nine-month period, BRF recorded a 3.6% rise in sales by value against a decrease of 17.1% in volumes.
The company, meanwhile, has embarked on a strategic drive to boost the performance of its core meat business. Last October, BRF launched a "business acceleration programme" focusing on four key areas: growing sales, reducing operating costs; reviewing administrative and distribution costs; and improving sourcing efficiency.
ANNOUNCEMENT TO THE MARKET
Pursuant to CVM Instruction 358 of January 3, 2002, BRF S.A. ("Company") announces that in the light of a resolution of its Board of Directors, it is examining strategic alternatives for its dairy products division, including the establishment of partnerships or the partial sale of these assets to third parties.
Pursuant to current regulations, the Company will keep the market in general informed as to this operation.
Original source: BRF
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