BRF'S Net Revenue reaches 8.9 billion Brazilian reais in 4Q17

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PR Newswire 22-Feb-2018 9:06 PM
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SO PAULO, Feb. 22, 2018 /PRNewswire/ -- BRF's net operating revenue amounted to R$8.9 billion in the fourth quarter of 2017 (4Q17), up 3.6% over the same quarter in 2016. The result reflects the greater volume of sales recorded in the period, driven mainly by the sales of Christmas season products in Brazil and Southern Cone. The gross profit of the company reached R$1.9 billion, Adjusted EBITDA totaled R$645 million, and Capex totaled R$310 million in this period.
As for the full-year results, net operating revenue totaled R$33.5 billion, a drop of 0.8% compared to 2016. Gross profit amounted to R$6.9 billion, while Adjusted EBITDA touched R$2.9 billion. Meanwhile, Capex reached R$1.6 billion. Full-year 2017 reported a net loss of R$1.1 billion, reflecting the adverse financial and operational impacts in 2017, which totaled R$772 million.
A significant proportion of adverse results recorded in 2017, around 50% of them, arose from direct effects of the Weak Flesh Operation. The operation has led to the closure of many markets, generated discounts on export prices and brought relevant obstacles in the production chain, driving to relevant impacts on the company's results.
Volumes and Markets
Throughout 2017, BRF marketed approximately 5 million tonnes of food around the world. In Brazil, the highlight was the recovery of market share in important categories, such as, ready-to-eat meals, margarine, and cold cuts. According to the latest Nielsen report, the company reached 55.3% of market share. The net revenues obtained in this market totaled R$4.2 billion in 4Q17 and totaled R$15.2 billion in the full-year 2017.
OneFoods also registered an increase of market share in 2017. The total market share of the company in the Gulf countries was 41.6%, up 1.1 p.p. compared to the same period of the previous year. The division's net revenue totaled R$1.9 billion in the quarter, reaching R$6.7 billion in the full-year.
Meanwhile, net revenue in the international division totaled R$2.0 billion in the 4Q17 and R$8.5 billion in the full-year. The division marketed more than 1.2 million tonnes of food in 2017, of which more than 85% of these sales occurred in Asia and Europe, pushed mainly by fresh poultry.
In the Southern Cone division, net revenue totaled R$517 million in 4Q17 and R$1.9 billion in the full-year. More than 200 thousand tonnes of food was marketed by the division in 2017, with an emphasis on processed foods.
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SOURCE BRF S.A.