BRF recorded a net loss of BRL 1.546 billion in the first quarter of 2022, reversing a profit of BRL 22 million reported in the first quarter of last year, the company said in a statement released this Wednesday, 4th. of sales in the period totaled R$ 12.04 billion, an increase of 13.7% over the R$ 10.592 billion in the same quarter of 2021. The company attributed the result to the Brazilian economic and global geopolitical scenario that negatively pressured the company’s performance in the first quarter.
BRF’s adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) in the first three months of the year reached R$121 million, down 90.2% compared to the sum of R$1.234 billion recorded in the same period of the previous year . The adjusted Ebitda margin was 1%, compared to 11.6% on the same comparative basis.
In a statement sent to the press, BRF reported that net debt stood at BRL 12.588 billion, BRL 2.73 million less than reported from January to March 2021. As a result, the company ended the quarter with an index of leverage (ratio between net debt and Ebitda) at 2.83 times, against 2.96 times in the same period of the previous year.
“The drop in income of the Brazilian population, added to the rise in global inflation, impacted BRF’s operational planning in the period, with a noticeable drop in volumes. This scenario affected food retail, leading the sector to adjust its inventories in the first months of 2022, which also impacted the company’s sales,” BRF said in a note.
In the first three months of the year, BRF sold 1.144 million tons of products, an increase of 6.9% compared to 1.070 million tons a year earlier. The company also said that operating cash flow was negative by R$ 137 million in the period and that free cash flow reached R$ 3.691 billion, also negative.
BRF recorded net operating revenue in the Brazil segment of R$ 5.883 billion, an increase of 9.1% compared to the same period last year. The volume of fresh poultry and pork meat and processed products sold totaled 549 thousand tons, 2.6% more on the same comparative basis.
In the international segment, net revenue was BRL 5.497 billion, up 14% over the period ended March 31, 2021. Sales volume reached 469 thousand tons, an increase of 0.7% compared to 466 thousand tons sold a year earlier. The average price of products in reais increased 13.2% to R$11.72 per kilo. As for the operation in Asia, revenue from the market fell 16.8% in the first quarter of the year, to R$ 1.210 billion. According to BRF, revenue growth was mainly driven by the international market, especially the Halal market, which increased by 27%. The region’s Ebitda doubled in the same comparison.
BRF’s direct exports totaled 144 thousand tons, down 7.8%, with revenue of R$ 1.630 billion, an increase of 27.8%, in the annual comparison. The company says that there was a reflection of the resumption of tourism and the food service channel in international markets, concentrated in the Middle East and Americas.
