BRF has vowed not to repeat mistakes that led to a fall in its like-for-like fourth-quarter revenues of 4.1%.
The Brazilian food processor reported net operating revenue of BRL 8.6 billion ($2.77 billion) – 1% higher than the previous quarter – but its year-on-year revenue fell, and gross profit was nearly 40% lower than the fourth quarter of 2015.
BRF said that ‘elevated inventories’ had negatively affected its margins in the Middle East and North Africa, Asia, and Europe.
In a conference call with investors, chairman Abilio Diniz and chief executive officer Pedro Faria blamed a lack of information and some miscommunication, and vowed to put in place protocols that would help the company to avoid a similar situation in future, Reuters reported.
Other highlights of BRF’s full-year results include net revenue of BRL 39.1 billion ($12.6 billion) and gross profit of BRL 7.5 billion ($2.41 billion).
In January, it signed an agreement to acquire the operations of Banvit, the largest poultry producer in Turkey, and integrate it into its new One Foods halal business.
The deal, worth $470 million, will afford the company greater access to the world’s largest market for halal chicken.
Banvit, which operates five processing plants and one feed factory, has a capacity of 600,000 birds a day.
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