BRF’s 2015 Net Income Grows 46 per cent to R$3.1 billion

BRAZIL - Despite the extremely challenging economic scenario, BRF’s net income advanced 46 per cent in 2015, to $3.1 billion. EBITDA came to R$5.7 billion, which represents significant growth of 21.9 per cent over 2014.
calendar icon 17 March 2016
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Net operating revenue (NOR) amounted to R$31.7 billion, advancing 4.0 per cent on 2014. The company’s performance was driven by the expansion in its international operations, an increase in the number of points of sale in Brazil and improvements in the quality of customer service.

To ensure the execution of production- and energy-efficiency, automation and support projects, the company invested more than R$2 billion in 2015,” said Pedro Faria, Global CEO at BRF. “We maintained our strategy of capturing efficiency gains at our production units in order to streamline BRF and improve its agility,” explained Faria.

In Brazil, sales of higher-value products in 2015 increased 7.4 per cent, to R$12.2 billion. During the year, 1.7 million tons of processed items were sold in the region, representing growth of 4.92 per cent on 2014. The return of the Perdigão brand in relevant categories, such as Hams and Smoked Sausage, contributed to this performance, with brand execution in both categories improving gradually.

Data from Nielsen also point to BRF’s superiority in the Brazilian market. In 2015, the company strengthened its leadership position in important categories. According to the market researcher, BRF ended the year with market share of 63.9 per cent in the ready-to-eat meals segment, 63.3 per cent in the cold cuts segment, 67.3 per cent in the margarines segment and 41.3 per cent in the sausages segment. It is important to note that Sadia and Perdigão remain the most valuable brands in Brazil’s food industry, according to a study by BrandAnalytics.

And the Sadia brand's success is not limited to Brazil, but rather transcends borders. In the Middle East, for example, the second most important market served by BRF in the world, sales exceeded expectations, which led the company to accelerate its project to expand production capacity at its plant in Abu Dhabi, United Arab Emirates, from 70,000 to 100,000 tons/year. In addition to meeting the growing local demand, the expansion project also aims to serve new clients in North Africa, Sub-Saharan Africa and Asia.

Also in the Middle East, BRF moved forward in its direct production distribution, which helped to minimize volatility in the prices practiced in the region. “In 2015, we announced the acquisition of part of the frozen foods distribution business of Qatar National Import and Export. The transaction is aligned with the company’s strategic globalization plan, which aims to tap local markets and to strengthen BRF brands by distributing and expanding its production portfolio around the globe,” said Faria.

In Asia, the most significant improvement in the year was in revenue from higher-value products, which grew 14.4 per cent compared to 2014. In the Europe/Eurasia region, the highlights were the growth in revenue from higher- value items, of 12.9 per cent, and from fresh poultry, of 76.7 per cent, with both figures in comparison with 2014.

In Latin America, the better product mix in Argentina, especially in higher-value items, as well as the higher volumes from new markets, including Mexico, drove results in the region. Sales of processed items, for example, advanced 59.3 per cent on 2014, to R$1.3 billion.

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