SAO PAULO (Reuters) - Listed meat processor BRF said on Thursday food sales exceeded expectations in the first two months of the year in Brazil, with the company planning to expand production of processed foods to capture revenue from strong demand, executives said on Thursday.
"Regarding 2025, we started the year quite well both in terms of volumes and market diversification," said the company's CEO Miguel Gularte in a conference call to discuss fourth-quarter earnings. "There are cost challenges, but we are prepared."
The world's largest chicken exporter, BRF said on Wednesday fourth-quarter net profit was 868 million reais ($149.33 million), up 15% from the same period a year earlier. The annual result was the best in history.
Still, BRF shares fell as much as 8.8% in mid-morning trading, as investors punished the stock because "results were the first in a while that missed market expectations," according to a Bradesco analyst in a note to clients about BRF's performance in the last quarter of 2024.
BRF's CFO Fabio Mariano told analysts BRF sees a positive scenario for protein prices, with a "very balanced equation between supply and demand", including for chicken.
In 2023, meat companies suffered from global chicken oversupplies.
BRF processes pork and chicken, serving the domestic market and exporting to countries like China and the Middle East, among others.
Regarding operations, the CFO highlighted that the growth in demand for processed foods in Brazil reduced idle capacity at BRF units, improving operating efficiencies.
That will allow the company to allocate resources to expansion projects, especially in the processed and frozen food category.
(Reporting by Roberto Samora; Writing by Ana Mano, Editing by Franklin Paul)
