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.
© FoodBev Media Ltd 2022
World Beverage Innovation Awards – NOW OPEN FOR ENTRIES!
The awards celebrate excellence and innovation across the global beverage industry. Don’t miss out on having your innovations recognised on a global scale.
Deadline for entries 23 July – enter now!
Don’t get left behind
Start your free Foodbev magazine trial today and join thousands of fellow industry professionals in receiving food and drink trends direct to our business.
Click here to start your free trial
Your privacy We use small files known as ‘cookies’ to enhance your experience of the FoodBev website and analyse site-traffic. Read about how we use cookies or how you may control them in our updated privacy policy and cookie policy. If you continue to use this site, you consent to our use of cookies. Click the ‘OKAY‘ button at the top right of this panel to accept or click here for more information.