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BRF's Net Revenue Reaches R$ 8.2 Billion In Q1 2018

SAO PAULO, May 10, 2018 /PRNewswire/ -- Net operating revenue of BRF reached 8.2 billion BRL in Q1 2018 - an increase of 5% over the same quarter of the previous year. The growth reflects the progress of the volumes sold especially in Brazil, Turkey, China, and Hong Kong, which together have registered a high of 5.7%. Gross profit in the period increased 11.7%, reaching 1.5 billion BRL. Net losses declined 60.2% to 114 million BRL. Adjusted EBITDA totaled 802 million BRL - up 40.7% compared to the same period last year.

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In Brazil, the highlight is the volume growth of 9.6%, driven by an increase of 22.5% y/y and 4.7% y/y in the in-natura and processed segments, respectively. In fact, the performance reflects the strategy of offering a portfolio of products more suited to the current reality of consumption in the country, adjusting the trade execution in a market with greater availability of products. In addition, volume was also driven by a larger number of customers, which reached 191,000 points of sale in Q1 2018.

The Muslim market-driven unit OneFoods also recorded a good operational performance in the period, with a total net revenue of 1.8 billion BRL in Q1 2018, an increase of 39.6% over the same quarter of the previous year. When the acquisition of Banvit, in June 2017, is excluded from the analysis, the net revenue shows a growth of 1.4% and a drop of 10.4% in volume. The result reflects the best balance of supply and demand and a local effort for the recovery of margin.

The highlight in the international division, which includes the operations of Asia, Europe, the Americas, and Africa, was the expansion of the adjusted EBITDA margin, with a growth of 8%. In this period, the net revenue totaled 1.08 billion BRL, compared to 943 million BRL recorded in the previous year - a high of 12.9%.

Net revenue in the Southern Cone -- Argentina, Bolivia, Chile, Paraguay, and Uruguay -- increased by 12.4% compared to the previous quarter, reaching 592 million BRL. The index was impacted positively by a growth of 13.2% with the sale of in natura turkey in Chile. On the other hand, the higher cost of the raw material for bovine, turkey, swine and poultry put a pressure on the gross margin of 1.1% in the region.

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