BRASIL, São Paulo. Despite the extremely challenging economic scenario, BRF’s net income advanced 46% in 2015, to $3.1 billion. EBITDA came to R$5.7 billion, which represents significant growth of 21.9% over 2014. Net operating revenue (NOR) amounted to R$31.7 billion, advancing 4.0% 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.
In Brazil, sales of higher-value products in 2015 increased 7.4%, 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% on 2014.
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% compared to 2014. In the Europe/Eurasia region, the highlights were the growth in revenue from higher- value items, of 12.9%, and from fresh poultry, of 76.7%, 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% on 2014, to R$1.3 billion.
In 4Q15, BRF reported growth in all regions, with NOR of R$9 billion, or 11.3% higher than in 4Q14. NOR growth in the period was led by the Middle East/Africa, Latam and Europe. Growth was driven by improvement in the sales mix and higher average prices in Brazilian real, which offset the lower sales volumes. BRF posted net income of R$1.4 billion in 4Q15, advancing 42.8% on the prior-year period.
In Brazil, sales volumes of commemorative items (turkey, chester and special pork cuts) advanced 5% on 4Q14, driven by the self-service and wholesale channels.