The BRF board of directors has approved a financial and operational restructuring plan that includes the reduction of the number of company vice presidents and the divestiture of operational units In Europe, Thailand and Argentina.
In a material fact posted on the BRF website and dated June 29, the Brazil-based meat and poultry company revealed that the objective of the restructuring plan is to reduce its debt leverage and improve its share capital structure.
The material fact was signed by Lorival Nogueira Luz Junior, chief operating officer, chief financial officer and investor relations officer of BRF.
Focus on Brazilian, Asian and Muslim markets
BRF stated that it wants to focus on its transactions in the Brazilian domestic market, in Asia, and in the Muslim market, which included the Banvit assets in Turkey. According to the company, those are the markets in which it occupies a leading position and has strong competitive advantages.
Sale of other assets
While BRF focuses on certain markets, it will reduce its involvement in other markets. The company stated that it will sell operational units in Europe, Thailand and Argentina, but stressed that the sale of those assets does not exclude the exportation to those markets.
The plan comprises the sale of real estate and no-operational assets, as well as of minority interests in companies.
BRF intends to raise approximately BRL5 billion (US$1.3 billion) through those measures.
Reduction in number of vice presidents
Another plan for BRF to improve its financial situation is to simplify its organizational structure with the reduction of the number of vice presidencies within the company from 14 to 10.
The ten vice presidents will oversee the following operations:
- Brazil market
- Halal market
- International markets
- Operations
- Sales
- Operations planning and quality
- Finance and investor relations
- Strategic planning and management
- Human resources and shared services
- Institutional and compliance
