BRF, the Brazilian food group, has booked a jump in full-year earnings thanks to improved margins and higher sales.
The company said net earnings rose 38% to BRL1.06bn (US$456.5m) in 2013. EBITDA was 37% higher, rising to BRL3.1bn. BRF said it benefited from an improved operating margin, which rose 230 basis points to 10.3%.
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During the year, BRF saw a 7% increase in sales, which rose to BRL30.5bn. Gains were driven by higher sales overseas. Exports rose 13% to BRL13.36bn while domestic sales gained 3% to BRL17.16bn.
BRF has embarked on a strategic drive to boost the performance of its meat business. Last October, BRF launched a “business acceleration plan” focusing on four key areas: growing sales, reducing operating costs; reviewing administrative and distribution costs; and improving sourcing efficiency.
“We believe that all the initiatives we have taken involve a process of long term sustainable work. Notwithstanding the fact that this does not always bring immediate results, one of the key targets in our acceleration plan will be to consistently and gradually increase our operating result by BRL1.9bn as from 2016,” chairman Abilio Diniz stressed yesterday (27 February).
Earlier this week, BRF said it was “examining strategic alternatives” for its dairy business.
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