Brazil's BRF reports massive first quarter loss
The pork and poultry processor reported $304.9 mln in losses
The Pig Site
5 May 2022
Brazilian poultry and pork processor BRF SA posted on Wednesday a massive first quarter loss, as inflation weighed on consumer sentiment and raised operating costs in its home market, reported Reuters.
BRF said in a statement it lost 1.5 billion reais ($304.9 million), compared with a 22 million real profit in the same period a year earlier.
The company said its adjusted earnings before interest, tax, depreciation and amortization, a measure of operating income known as EBITDA, was 121 million reais, a 90% drop.
The results reflect a challenging operating environment for the company, particularly in Brazil, where inflation reduced consumers' purchasing power at the same time meat companies faced higher fuel and feed prices.
BRF said disappointing food sales in Brazil ended up increasing its inventories, affecting suppliers and logistics. This scenario forced BRF to introduce measures including product promotions, corroding margins in the process.
BRF burned 3.7 billion reais of cash to weather the storm...