MBRF: BRF raises revenue and sales, even without China, but margins and Ebitda fall

MBRF managed to partially circumvent the Chinese embargo on Brazilian chicken meat in the third quarter of this year. The company's report showed a 5.4% increase in BRF's net revenue on an annual basis, from poultry and pork operations, to R$ 16.3 billion, with a 5% growth in sales, totaling 1.3 million tons. The gross margin, however, fell from 27.3% to 24.7%, while the cost per product sold increased by 9.7%. This was decisive for the 14.9% drop in BRF's adjusted Ebitda, to R$ 2.525 billion, and a 3.7 percentage point drop in the Ebitda margin of the operation, from 19.2% to 15.5%. MBRF CEO Miguel Gularte stated that the chicken cycle remains balanced between supply and demand, a scenario that remained even after the temporary suspension of Brazilian exports to China. According to him, the domestic market absorbed the volumes well and contributed to maintaining positive margins in the quarter, despite the absence of shipments to the Asian country. "We continue to see a market ...