BRF posted a net income of BRL445.6 million (US$106.7) for the third quarter of the 2019 fiscal year, a stark turnaround from the BRL812.4 million (US$195.6) net loss for the same quarter of FY 2018.
The Brazil-based meat and poultry company released its quarterly results on November 8.
Following a relatively lengthy period of net losses, BRF in recent years has divested of assets in Argentina, Europe and Thailand, while focusing on the domestic and other key markets.
For its Brazilian operations, BRF reported a net revenue of BRL4.38 billion, a 6.3% year-over-year improvement. The Brazilian segment’s volumes were “virtually” the same as the same quarter of 2018, but they did increase about 8% when compared to the second quarter of 2019.
For its international operations, BRF reported a revenue of BRL3.8 billion, a year-over-year improvement of 10.6%, the company stated in a press release.
BRF noted that its sales volumes in international markets, particularly Asia, moved 5% higher than they were one year ago. Volumes can be expected to see continued improvements, BRF CEO Lorival Nogueira Luz Jr. indicated, as the company in September had several plants approved to ship products to China.
Expansion in Saudi Arabia
BRF, in October, announced its plans to expand in the Saudi market. As the financial results were announced, Luz elaborated more on the pending expansion.
“We just announced to the market that we have signed a memorandum of understanding with the Saudi Arabian Government Investment Authority (SAGIA) for the construction of a chicken processing plant in Saudi Arabia. This initiative consolidates BRF’s position in the Saudi market, where we have operated since the mid-1970s through our highly successful Sadia brand, a leader in the food sector in several categories. The new plant’s portfolio will feature high-value products, such as breaded and marinated chicken cuts, hamburgers and sausages, among others.”
