By Ana Mano
SAO PAULO (Reuters) -Brazilian food processor BRF, the world’s largest chicken exporter, said on Thursday it earned 735 million reais ($136 million) in the second quarter despite disruptions from a bird flu outbreak in May that triggered trade bans.
The company, which also processes pork and prepared food products, said earnings before interest, taxes, depreciation and amortization, a measure of operating income known as EBITDA, was 2.5 billion reais in the period, in line with the average of analysts’ forecasts.
Sales totaled 15.36 billion reais, a 2.9% annual rise, BRF said.
Citing official trade data, BRF executives said the bird flu outbreak caused Brazilian poultry exports to fall 15% in the quarter while the company’s own poultry exports dropped 5%, indicating it was able to weather the storm.
At a press conference, executives noted BRF redirected some chicken products to the domestic market, or found alternative destinations for certain cuts after multiple bird flu-related trade embargoes.
China, a key export destination, remains closed for Brazilian poultry products after the outbreak, which the government has controlled.
However, Saudi Arabia will resume buying from Brazil, BRF executives told reporters, citing official government communications.
Sales volume grew about 6% in BRF’s home market, driven by processed food, which scored a record high for any second quarter for the company. BRF’s Brazil EBITDA reached 1.3 billion reais and margins were a healthy 16.4%, BRF said.
In international markets, BRF said it was able to maintain “competitive pricing levels.” The company recorded adjusted EBITDA of 1.2 billion reais for the business and a margin of 17.3%.
In the second quarter, BRF said it obtained 11 new export authorizations, highlighting key markets such as Argentina and Canada.
BRF said the company had the best half-year in history, referring to results between January and June, with EBITDA of 5.3 billion reais and net profit of 1.9 billion reais in the period.
(Reporting by Ana Mano; Editing by Leslie Adler and Richard Chang)
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