Brazil-based food group BRF said its third-quarter results missed expectations, despite a jump in profits for the meat and dairy processor.
Earnings more than trebled as BRF lapped a challenging third quarter of 2012, when feed costs hit its bottom line.
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However, in a joint statement, chairman Abilio Diniz and CEO Claudio Galeazzi said: “Despite a very favorable performance when compared with 2012 together and our resilience in confronting a domestic scenario which continues to be a challenging one, the fact is that performance was below our expectations.”
BRF booked net income of BRL216m for the three months to the end of September, more than treble the BRL91m it recorded in the corresponding period last year. In the third quarter of 2011, BRF posted net income of BRL365m.
Operating income was up 89% at BRL622m, the owner of the Sadia brand said on Monday (28 October).
Sales grew 5% to BRL7.58bn on the back of higher domestic and export revenues. However, BRF said sales in Brazil were “restricted” amid a “challenging domestic environment”.
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By GlobalDataExport revenues were helped by the devaluation of the Brazilian real and increased 7%. Nevertheless, BRF said its export business was affected by increased supply in certain markets, partcularly the Middle East.
BRF generated 44% of its sales in export markets in the quarter.
Click here for the full statement from the company.
