BRF anticipates reopening of chicken slaughterhouse in Paraná

BRF, owner of Sadia and Perdigão, will anticipate the reopening of the chicken slaughterhouse in Carambeí, Paraná. It willl now resume operation on September 2, about two months ahead of the original schedule.

The employees of this slaughterhouse had their work contracts temporarily suspended since May 27. The suspension was planned to last for up to five months and, in the worst case scenario, the slaughterhouse would not resume production until the end of October.

BRF said in a statement that two chicken slaughter lines will resume in September and a third in October. To this end, the company has already started hatching eggs to later supply the chickens to the farmers.

BRF has been expanding production with the aim of supplying greater foreign demand, mainly from China.

Net income of R$191m in the second quarter

BRF ended the second quarter of 2019 with a profit of R$191m. The strong result was the consequence of higher revenues in domestic and foreign markets, as well as better operating and commercial performance.

Growth in net operating revenue totaled R$8.3bn, up 18% over the same period last year, while adjusted EBITDA was R$1.5bn. EBITDA margin, which measures BRF’s operating efficiency, reached 18.6%, an increase of 13.6% compared to the second quarter of 2018.

The company’s debt level, measured by the ratio of EBITDA to net debt, reached 3.74 times in 2Q19. The target for the end of 2019 is 3.15 times, and by the end of 2020 this same indicator will be approximately 2.65x. BRF also worked to extend the average term of its indebtedness and recently raised debentures in the amount of R$750m and maturity of up to 7 years. As a result, it ended the period with a cash position of approximately R$7bn, sufficient to cover the company’s financial obligations over the next 2 years.

In the Brazilian segment, BRF’s net revenue advanced 10.8% over the same period last year and reached about R$4bn. The company remained the leader in the domestic market, with 44.2% market share. In the international segment, net revenues reached R$3.9bn, 24% higher than 2Q18 – due to the good performance of the halal (Muslim) market, where the company is also a leader with 43% share.

Sources: Valor and BRF

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