- Net income increased 46% to BRL364m
- Weaker Brazilian currency helps results
- Perdigao brand suspension lifted
BRF saw an improvement in its profits during the second quarter, with the meat group benefiting from the translation of its international sales into its weaker domestic currency, the Brazilian real.
EBITDA was up 43.6% to BRL1.4bn. BRF's profitability was helped by higher average selling international prices when measured in Brazilian reais.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
For example, sales from BRF's division covering the Middle East and Africa jumped 29.3% in the second quarter, thanks to a 28.5 percentage point rise in average prices in reais. Volumes inched up 0.6%.
Total net operating revenue increased 12% to BRL7.9bn.
Net income hit BRL364m (US$107.9m). However, Reuters reported analysts had been expecting BRF's second-quarter net income to hit BRL437m.
BRF's domestic business saw its EBIT drop 3.9% to BRL389m despite an 8% increase in sales to BRL3.96bn. Volumes dipped but a 15% increase in processed food sales helped its revenue.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOverall, BRF said it "closes the first half of the year well positioned, despite the unfavorable and equally challenging period for the country given the current macro-economic scenario".
It pointed to now being able to relaunch some products under the Perdigão brand. The company had to suspend its use of the brand as part of getting regulatory clearance of the merger between Sadia and Perdigão, which formed the group in 2011.
"The company is now able to fully show the strength of its brand," BRF said.
