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Brazil's BRF dodges bird flu trade disruptions, posts Q2 gains
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Brazil's BRF dodges bird flu trade disruptions, posts Q2 gains
Aug 14, 2025 4:12 PM

SAO PAULO, Aug 14 (Reuters) - Brazilian food processor

BRF, the world's largest chicken exporter, said on

Thursday it earned 735 million reais ($136 million) in the

second quarter despite disruptions from a bird flu outbreak in

May that triggered trade bans.

The company, which also processes pork and prepared food

products, said earnings before interest, taxes, depreciation and

amortization, a measure of operating income known as EBITDA, was

2.5 billion reais in the period, in line with the average of

analysts' forecasts.

Sales totaled 15.36 billion reais, a 2.9% annual rise, BRF

said.

Citing official trade data, BRF executives said the bird

flu outbreak caused Brazilian poultry exports to fall 15% in the

quarter while the company's own poultry exports dropped 5%,

indicating it was able to weather the storm.

At a press conference, executives noted BRF redirected

some chicken products to the domestic market, or found

alternative destinations for certain cuts after multiple bird

flu-related trade embargoes.

China, a key export destination, remains closed for

Brazilian poultry products after the outbreak, which the

government has controlled.

However, Saudi Arabia will resume buying from Brazil,

BRF executives told reporters, citing official government

communications.

Sales volume grew about 6% in BRF's home market, driven

by processed food, which scored a record high for any second

quarter for the company. BRF's Brazil EBITDA reached 1.3 billion

reais and margins were a healthy 16.4%, BRF said.

In international markets, BRF said it was able to

maintain "competitive pricing levels." The company recorded

adjusted EBITDA of 1.2 billion reais for the business and a

margin of 17.3%.

In the second quarter, BRF said it obtained 11 new

export authorizations, highlighting key markets such as

Argentina and Canada.

BRF said the company had the best half-year in history,

referring to results between January and June, with EBITDA of

5.3 billion reais and net profit of 1.9 billion reais in the

period.

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