BRF reported a strong performance for its halal poultry distribution during the first quarter of fiscal year 2021.
The Brazil-based company reported net operating revenues of BRL2.1 billion (US$400 million) for its halal distribution, which was a 22.9% improvement on a year-over-year basis. It was also an 8.7% improvement when compared to the most recent quarter.
The company attributed part of that increase to the depreciation of the Brazilian real versus the U.S. dollar, as well as higher prices in Turkey, due to higher costs and a better balance between supply and demand. The average price was up 26.3% on a year-over-year basis and 11.8% on a quarter-over-quarter basis.
The halal volumes did slip 2.7% when compared to the first quarter of fiscal year 2020, due to restrictions imposed by local governments to prevent the spread of COVID-19, which affected nearly all channels.
“In Turkey, also, we can observe the strength of the market, even in a scenario of the economic crisis, Turkish lira depreciation, and worsening of COVID-19 cases, the net revenue grow 44.1% year-over-year,” the company stated. “In addition to the price increase, as previously mentioned, the positive performance reflects the company’s strategy of intensifying its presence in retail, strengthening the Banvit brand and improving commercial execution in the domestic market.”
Following the close of the quarter, BRF announced that it had closed on the sale of its Banvit assets in Romania.
Companywide, BRF reported a net income of BRL22 million for the most recent quarter, compared to a net loss of BRL38 million for the first quarter of the 2020 fiscal year.
Formerly known as Brasil Foods, BRF is the second largest poultry producer in Brazil and the third largest in the world. According to the WATT Poultry International Top Companies survey, BRF slaughters 1.554 billion broilers annually.
