It will take at least two years for Brazil-based meat and poultry company BRF to overcome its current financial struggles, the company’s global CEO said.
Pedro Parente, who took over as the chairman and global CEO of BRF earlier in 2018, told Reuters that the company’s turnaround plan won’t produce immediate results, as BRF seeks to overcome financial difficulties related to corruption and food safety scandals.
“Realistically, it will not happen in less than two years,” said Parente, who previously served as the CEO of state-run oil company Petrobras. “I’m not using shortcuts, and I’m not interested in showing good quarters numbers if they are not sustainable.”
Last week, BRF released its financial results of the third quarter of fiscal year 2018. For the quarter, the company faced a net loss of BRL812 million (US$216.7 million), compared to a net income of BRL138 million (US$36.8 million) for the third quarter of fiscal year 2017, and a 3 percent decline in sales volume.
Progress of divestitures
To help the company return to profitability, BRF in June revealed its intent to sell assets in Argentina, Europe and Thailand.
In a press release, BRF stated that it has “already strengthened (its) contact with potentially interested parties and (has) started to receive non-binding proposals.”
The company stated that divesting of those assets will enable it to better focus on its more profitable markets in Brazil, Asia and in regions with a high Muslim population.
Parente’s term as CEO extended
It was earlier announced that Parente would step down from his role as global CEO in mid-2019 and he would be succeeded by Lorival Nogueira Luz Jr., currently the global chief operating officer. However, in a notice to the market, published on the BRF website on November 6, that Parente’s appointment as CEO would be extended another six months.
BRF, according to the WATTAgNet Top Poultry Companies Database, is the third largest broiler company in the world.
