Brazil's BRF S.A., the world's largest chicken exporter, announced significant fourth-quarter earnings along with record profits for the entire year of 2024, demonstrating resilience and successful strategies amid fluctuated market conditions.
On February 26, 2024, the company reported a fourth-quarter net profit of 868 million reais (approximately $149.33 million), which reflects a 15% increase compared to the same period last year. This strong result contributed to an impressive annual profit leap of 297.5%, totaling 3.7 billion reais. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) also marked historical highs at 10.5 billion reais, representing a staggering 155% rise year-over-year.
CEO Miguel Gularte remarked on the company’s achievements, stating, "We ended the year with a record result, with a solid financial position and, above all, the outlook for 2025 is great. Our business is at an excellent moment and the company is prepared to take advantage of the opportunities."
The results come at a time when BRF is anticipated to benefit from anticipated increases in chicken export forecasts. Experts suggest these adjustments coincide with outbreak challenges impacting competitor markets, including various cases of avian influenza. Interestingly, Brazil has not reported any avian influenza cases on commercial farms, which means they have evaded the potential culling of livestock and market bans.
Despite occasional setbacks, last year Brazil dealt with outbreaks of Newcastle disease, which, unlike avian influenza, only imposes respiratory challenges on birds but hasn't halted the chicken exportings as significantly as other threats might. This resilience has permitted BRF to maintain their strong hold on the market.
BRF's quarter earnings saw the firm achieve EBITDA of 2.8 billion reais, showing significant operational efficiency and adaptability to the economic pressures from increased corn prices, which typically affect poultry feed costs. The management was able to effectively manage costs, positively impacting profitability.
Looking to expand its influence on international markets, BRF earned 84 new export authorizations during 2024, bringing the total to 175 since 2022. This proactive approach has positively impacted its market share, particularly across the Gulf region and Turkey, where BRF maintained leading shares of 37.5% and 26%, respectively.
Sales volumes within Brazil have seen improvements driven by the rising demand for processed food products. Improved conditions within the domestic labor market also played a role, serving to bolster local consumption levels.
Heightening its competitive edge through strategic market diversification, BRF noted record profitability on the international front, primarily fueled by the increased integration of processed products within its offerings.
Looking forward, Gularte's positive outlook for 2025 aligns with BRF's strategy to continually seize market opportunities. By efficiently managing their processes and diversifying product lines, BRF is well-positioned amid changing market dynamics. The company’s preparedness to tackle challenges, as illustrated during periods of uncertainty with diseases affecting livestock globally, serves as proof of their operational excellence.
Overall, BRF's strong financial performance showcases its ability to adapt and evolve, setting it on course for future successes and solidifying its status as one of the leading exporters of poultry worldwide. The company's continuous innovation and representation of Brazil’s agricultural efficacy serve as foundational elements of its business model.