BRF has admitted it is “deeply unsatisfied” with its results for 2016, which saw the Brazil-based meat processor fall into the red amid pressure from input costs and lower financial income.
The company booked an annual net loss of BRL372m (US$121.4m) after running up a quarterly loss of BRL460m in the last three months of the year.
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The Sadia owner’s EBIT for 2016 stood at BRL1.82bn, down sharply from the BRL4.23bn it generated in 2015.
However, BRF’s net revenues were up 4.8% at BRL33.73bn.
In a joint statement, CEO Pedro Faria and chairman Abilio Diniz said 2016 had been “marked by challenges that affected our short-term results”, which, they said, were “well below expectations and well below BRF’s potential”.
However, they added: “Although we were discontent with the short-term results, we were pleased with the structural advances achieved for the company’s long-term development. Our global growth continued, and sales volumes in international markets increased by 16.7% year-on-year. Even if we excluded the acquisitions of the period, sales volumes in international markets would still increase by 5.9%, especially in Asia, driven by China.”
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