Sales to China had a negative impact for Brazilian food giant BRF at the end of 2021, and were partly compensated by revenue increase in other Asian countries.
For Asian countries, BRF reported declines in both revenue and volumes in the final quarter of 2021, of 2.4% and 9.1%, respectively, attributable to lower pork export volumes and prices to China, as a result of the increase in local restrictions to production and consumption due to the pandemic.
“The drop in the pork margin and the adverse scenario of production and logistics costs negatively impacted the segment’s gross margin, which was partially offset by the consecutive rise in prices in dollars for Japan and South Korea,” said BRF.
BRF reported a net profit increase of 3.3% yoy, amid revenue gains and adjustments to minimize higher costs that impacted the company’s performance in the year.
“We ended 2021 with net revenue of 48.3 billion reais (USD 9.3 billion), a growth of 22.5% when compared to 2020, as a result of the focus on the value-added mix and innovations in our portfolio”, said the company’s CEO, Lorival Luz, On the report.
“Even in a year with a scenario of worsening costs, with readjustments above 50% in some items, BRF reported a very resilient result, with adjusted Ebitda of 5.6 billion reais (USD 1.1 billion) and a net profit of 517 million reais (USD 100 million), he said of the company’s annual performance.
