March 31, 2023
BRF (BRFS3) has a new board appointed by Marfrig (MRFG3) with Previ

BRF (BRFS3) posted a net loss of R$468 million, up 94.9% from the year and above consensus.

BRF (BRFS3) had a net loss of R$468 million in the second quarter of 2022, up 94.9% from a loss of R$240 million in the same period in 2021.

The company’s net revenue, according to a document published on Wednesday night (10), amounted to R$12.9 billion, an increase of 11.2% for the year. EBITDA was positive at R$897 million, down 30.7% in the same comparison.

Refinitiv consensus with analysts forecast a loss of R$197 million, EBITDA of R$1.293 billion and revenue of R$13.13 billion for the quarter.

BRF’s higher revenue was driven by an increase in prices in the international markets, focusing on the DDP Halal and Direct Export segments. In addition, the company also indicated that it implemented more costs in the domestic market and saw an increase in its revenue from the ingredients and PET food segments.

The company exported 478,000 tons between April and June of this year, up 4.2% compared to the second quarter of 2021. In Brazil, quantities sold fell 4% to 547 thousand tons – with an average price increase of 12.4%.

The cost of goods sold reached R$10.9 billion, an increase of 15% year on year.

Compared to the second quarter of 2021, we observed an increase in unit cost, mainly due to the increase in price
Grain, labor cost, fuel prices and packing prices”, the company comments.

Operating expenses, in turn, increased from R$ 1.63 billion to R$ 1.84 billion, with an increase in spending on selling expenses.

Finally, BRF’s revenue was also affected by the negative net financial result of R$610 million, slightly less than R$759 million at the end of last June – financial expenditures jumped 12.7% to R$894 million, but revenue grew by 118.6% to RRL . $183 million.

The company closed the second quarter with net debt of R$14.2 billion, down 3.5% y/y but up 13.3% qoq.

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