São Paulo – In quarter three (Q3) this year, the Brazilian food company BRF saw an increase in gross income and profit, as well as in sales to the Middle East, one of the markets where it plans to expand over the next few years. According to a statement to shareholders concerning Q3 results, released after the closing of stock markets last Thursday evening (30th), BRF posted R$ 7.981 billion (US$ 3.235 billion) in revenues in Q3 this year, up 5.3% from Q3 2013. Net profit was R$ 624 million (US$ 252.9 million), up 117.5%.
The company ascribed the performance to increased productivity in Brazil and abroad and process modifications. In Q3, BRF sold its beef and dairy units. According to the company, these were not part of BRF’s core business.
International Q3 revenues stood at R$ 3.374 billion (US$ 1.367.9 billion), up 3.8% from Q3 2013 and 2.5% from Q2 2014. According to BRF, foreign revenues increased mostly as a consequence of higher prices.
Q3 sales to the Middle East increased in both volume and revenues. During the period, 236,000 tonnes were sold to the region, up 10% from Q3 2013 and 6.6% from Q2 this year.
Operating revenues from Middle East sales stood at R$ 1.3 billion (US$ 527 million) in Q3, up 18.3% from Q3 2013 and 8.2% from Q2 this year. “The improvement can be attributed to the company’s improved market share in major markets such as Saudi Arabia, Kuwait, Oman and Yemen,” according to the statement.
In its statement to shareholders, BRF also reports that construction of a new plant has been completed in Abu Dhabi, the capital of the United Arab Emirates. The unit’s official inauguration should take place on November 26th, “celebrating the company’s expansion into strategic markets,” the statement reads. In the past few months, the company has acquired distributing companies that were its former partners in Gulf countries. In Q3, the Middle East was BRF’s leading market, followed by Asia, Europe, Eurasia (which includes Russia), Africa and the Americas.
*Translated by Gabriel Pomerancblum
