Brazilian BRF confident to hit targets despite unprecedented cost pressure

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SAO PAULO, December 8 (Reuters)Brazilian processor of chickens and poultry BRF SA BRFS3.SAsaid the immense cost pressure will not prevent the company from achieving goals such as net sales of R $ 65 billion ($ 11.65 billion) by 2024.

BRF and other food processors have faced Unprecedented inflationary pressure on costs this year, as prices for corn, soybean meal and packaging more than doubled, CEO Lorival Luz said during a company presentation Wednesday.

Although rising input prices reduced profits margins, sales more processed food products in Brazil and export markets such as the Middle East, which have a higher overall value, will be the key to increasing revenues and restore the margins.

The team knows how to operate in the face of adversity, ”said Luz.

Calling the current operating environment “hostile,” he said the company would explore “growth avenues” that include investing in producing cultured meats and moving away from a business model based on selling produce. commoditized such as fresh chicken.

However BRF, which accounts for 9% of global chicken exports, said it received 26 new meat export permits this year, allowing it to remain one of the biggest suppliers to lucrative markets like the Middle East and China.

BRF said it is also committed to increasing its production capacity to produce pet food in Brazil, as the company aims to become the second player in this segment by 2025.

($ 1 = 5.5778 reais)

(Reporting by Ana Mano; Editing by Andrea Ricci)

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