Brazil’s BRF dodges chook flu commerce disruptions, posts Q2 beneficial properties

By Ana Mano

SAO PAULO (Reuters) -Brazilian meals processor BRF, the world’s largest hen exporter, mentioned on Thursday it earned 735 million reais ($136 million) within the second quarter regardless of disruptions from a chook flu outbreak in Might that triggered commerce bans.

The corporate, which additionally processes pork and ready meals merchandise, mentioned earnings earlier than curiosity, taxes, depreciation and amortization, a measure of working earnings referred to as EBITDA, was 2.5 billion reais within the interval, in keeping with the common of analysts’ forecasts.

Gross sales totaled 15.36 billion reais, a 2.9% annual rise, BRF mentioned.

Citing official commerce information, BRF executives mentioned the chook flu outbreak brought on Brazilian poultry exports to fall 15% within the quarter whereas the corporate’s personal poultry exports dropped 5%, indicating it was capable of climate the storm.

At a press convention, executives famous BRF redirected some hen merchandise to the home market, or discovered various locations for sure cuts after a number of chook flu-related commerce embargoes.

China, a key export vacation spot, stays closed for Brazilian poultry merchandise after the outbreak, which the federal government has managed.

Nonetheless, Saudi Arabia will resume shopping for from Brazil, BRF executives informed reporters, citing official authorities communications.

Gross sales quantity grew about 6% in BRF’s dwelling market, pushed by processed meals, which scored a document excessive for any second quarter for the corporate. BRF’s Brazil EBITDA reached 1.3 billion reais and margins have been a wholesome 16.4%, BRF mentioned.

In worldwide markets, BRF mentioned it was capable of preserve “aggressive pricing ranges.” The corporate recorded adjusted EBITDA of 1.2 billion reais for the enterprise and a margin of 17.3%.

Within the second quarter, BRF mentioned it obtained 11 new export authorizations, highlighting key markets comparable to Argentina and Canada.

BRF mentioned the corporate had the most effective half-year in historical past, referring to outcomes between January and June, with EBITDA of 5.3 billion reais and internet revenue of 1.9 billion reais within the interval.

(Reporting by Ana Mano; Enhancing by Leslie Adler and Richard Chang)