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.