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

BRF (BRFS3) had a net loss of BRL 468 million in the second quarter of 2022, 94.9% higher than the loss of BRL 240 million in the same period in 2021.

The company’s net revenue, according to a document published on the night of this Wednesday (10), was R$ 12.9 billion, growing 11.2% in the year. Earnings before interest, taxes, depreciation and amortization (Ebitda) was positive at R$ 897 million, decreasing 30.7% in the same comparison.

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

BRF’s higher revenue was driven by the increase in prices in international markets, with emphasis on the Halal DDP segments and direct exports. In addition, the company also points out that it carried out a greater pass-through of costs in the domestic market and saw its revenue from the ingredients and PET Food segments increase.

The company exported 478 thousand tons between April and June this year, up 4.2% compared to the second quarter of 2021. In Brazil, volumes sold, however, dropped 4%, to 547 thousand tons, – with the average price jumping 12.4%.

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

“In comparison with the second quarter of 2021, we observed an increase in unit cost, mainly due to the increase in price
of grains, the cost of labor, fuel prices and packaging prices”, comments the company.

Operating expenses, in turn, jumped from R$1.63 billion to R$1.84 billion, with higher spending on selling expenses.

Finally, BRF’s revenue was also impacted by a negative net financial result of BRL 610 million, slightly less than the BRL 759 million at the end of the previous June – financial expenses jumped 12.7% to BRL 894 million , but revenues grew 118.6% to R$183 million.

The company closes the second quarter with a net debt of R$14.2 billion, down 3.5% on an annual basis but up 13.3% on a quarterly basis.

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