The Brazilian food company released its results for the second quarter. It informed it had a 50% market share in the export of halal poultry to the countries of the Gulf Cooperation Council.
From the Newsroom
São Paulo – Brazilian food industry BRF continues to lead exports of halal poultry to Gulf Cooperation Council (GCC) countries. Data was released on Monday (14) in the company’s quarterly results. Halal products are produced according to the requirements of Muslim markets and carry a certification attesting they are within standards.
“In the international market, we partially recovered our margins and maintained leadership in poultry exports in the Halal market to GCC countries, with a 50% market share. In this region, we recorded a 26% share of value-added products in our sales volume,” informed BRF. The GCC bloc is formed by the Arab countries Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Kuwait, and Oman.
Also on halal markets, BRF informed it observed an increase in the price in dollars of the griller, the company’s flagship product in the region, a whole chicken of smaller size. “Which has a 60% share of exports from Brazil to the Middle East,” the company informed about the griller. The company said during the second quarter of 2023 prices remained under pressure. “Due to the still existing imbalance between supply and demand for poultry in this geography,” it stated.
BRF informed it observed in the second quarter an improvement in prices in dollars in the international markets in which it operates, with recovery from the previous three months. Nevertheless, BRF had a drop of 1.4% in net revenue from international sales, attributed to factors such as the dollar depreciation against the Brazilian real and the reduction of volumes in the halal segment due to the seasonal effect of Ramadan. This year, the Islamic holy period, in which food consumption increased, occurred in late March.
BRF achieved net revenue of BRL 12.2 billion (about USD 2.47 billion at the current rate) from April to June; nonetheless, there was a 5.7% drop compared to the same period in 2022. The net loss was BRL 1.34 billion (about USD 271.33 million). EBITDA totaled BRL 1 billion (about USD 202.48 million), down 32.7%. Net debt was BRL 15.3 billion (about USD 3.10 billion). Despite these numbers, after the release of the results on Monday night, the company’s shares rose sharply on the Brazilian stock exchange this Tuesday (15).
The company reported improved operating indicators, sound performance of processed products in Brazil, and recovery of margins from the gradual price increase in dollars. It also stated it remains focused on its BRF+ efficiency plan, with reduced animal mortality rates, advanced productivity, reduced operating losses, and an advanced level of logistical services in the second quarter of this year compared to the first.
Translated by Elúsio Brasileiro