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       Brazil Chicken Supplier BRF Sees Profit Triple as Costs Fall
        
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       (Bloomberg) -- BRF SA, one of the world's largest chicken suppliers,
       surged to the highest since 2022 as lower costs and higher prices led
       to better-than-expected quarterly profits.
        
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       The profit beat underscores BRF's recovery after two straight years of
       losses amid surging costs and a supply glut. Chicken producers
       globally are benefiting from a decline in prices for the grains used
       to feed their birds at the same time as consumer demand is rebounding.
        
       BRF, which produces everything from hams and sausages to frozen pizza,
       has also embarked on a plan to slash costs and boost efficiency across
       its operations.
        
       The stock jumped as much as 11% in São Paulo, to the highest level
       since April 2022. It was the biggest gainer in Brazil's benchmark
       stock index.
        
       Profits before items such as interest and taxes in the three-month
       period ended in March more than tripled from a year earlier to 2.1
       billion Brazilian reais ($414 million), the company said in a filing
       Tuesday. That exceeded the 1.7 billion-real average of analyst
       estimates compiled by Bloomberg.
        
       The result was a seasonal record, and reflect a change in the company
       fundamentals, Chief Executive Officer Miguel Gularte said in an
       interview. The company said it has seen a price recovery in almost all
       its regions.
        
       BRF is controlled by meat giant Marfrig Global Foods SA, and counts
       Saudi Arabia's state-owned fund Saudi Agricultural and Livestock
       Investment Co. among its shareholders. Marfrig shares jumped as much
       as 7.9%.
        
       BRF's net debt fell to less than 1.5 times Ebitda to the lowest level
       in eight years. With the reduced debt burden, the company now has the
       capacity to evaluate growth opportunities, CFO Fabio Mariano said in
       the same interview.
        
       Fitch Ratings earlier this month upgraded its credit ratings on BRF,
       citing the outlook for improved chicken demand.
        
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