BRF accelerated revenue growth in the third quarter of 2017, driven by favorable market conditions and the new corporate structure announced in July.
As a result, the Brazil-based meat and poultry company's net operating revenue totaled BRL8.7 billion (US$2.7 billion) -- an increase of 8.8 percent when compared to the second quarter -- while EBITDA reached BRL1 billion (US$310 million) in the same period, representing growth of 21.3 percent compared to the third quarter of fiscal year 2016.
In Brazil, the highlight was volume growth of processed food relative to annual production. Data provided by Nielsen showed a contraction of 3.3 percent in the processed food market between the third quarter of fiscal year 2016 and the third quarter of fiscal year 2017. In the same period, BRF volume grew 3.1 percent. This is a direct result of company efforts to drive sustained enhancement in trade execution and winning new customers, the company stated in a press release.
OneFoods, a unit strategically focused on serving Muslim markets, also recorded healthy operational results for the third quarter. This follows the gradual recovery of commercial dynamics in Islamic markets, as well as the consolidation of Banvit's first-quarter figures. BRF's operations in Turkey have consistently exceeded expectations in terms of results, BRF stated, underscoring the strategic value in the company's acquisition of Banvit.
The international division of the company, which consolidates activities in Asia, Europe, the Americas and Africa, launched the 'Global Optimization' management program. The initiative aims to maximize profitability by taking advantage of commercial opportunities in different regions by dynamically deploying the relocation of animal protein products. In doing so, the business unit reported growth in essentially all markets.
BRF invested BRL369 million (US$113.5 million) in the third quarter. BRL138 million (US45.5 million) of that investment was allocated to growth, efficiency and support; BRL73 million (US$22.5 million) to biological assets; and BRL58 million (US$17.8 million)to leasing and other items. The third quarter’s reduced investment level relative to the second quarter, according to the company, reflects more challenging macroeconomic and market scenarios, in addition to the company's commitment to leverage reduction.