Brazilian meat processor BRF has booked higher sales for the third quarter but reported a fall in volumes.
The company said Brazil was its most challenged market due to an increase in interest rates, inflation and unemployment which had a negative effect on the business environment and caused a slowdown in consumption, with stronger pressure on volumes and prices.
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Total volumes fell 3.4%. BRF pointed to lower volumes of non-processed products in Brazil and a 6.4% drop in volumes in its combined Middle East and Africa division, primarily due to its business in Angola. Volumes slid over 18% in Asia "impacted by isolated factors related to market access".
Sales were up 14.4% at BRL8.3bn (US$2.16bn), driven by the average price in Reais which was 18.4% higher during the quarter and thanks to revenue growth in the Middle East and Africa, Latin America and Europe/Eurasia markets.
Net income in the quarter rose 53.3% to BRL877m, helped by the sale of BRF's dairy division to Lactalis, which was completed in the quarter.
EBIT increased 16.4% to BRL969m. EBIT was lifted by higher gross income, which BRF said "more than offset" an increase in operating expenses and the impact of equity income result which declined in the quarter.
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By GlobalDataFor the nine month period ending 30 September, net income rose 40.5% to BRL1.7bn.
EBIT increased 28.8% to BRL2.7bn. Sales were 10.9% higher at BRL23.2bn.
