SAO PAULO, Nov 9 (Reuters) - Brazilian food processor BRF SA
turned a third-quarter profit driven by a strong
performance in its home market, slightly beating expectations,
according to a securities filing on Monday.
BRF said it earned 218.7 million reais ($40.61 million),
versus analysts' average estimate of 203.15 million reais
according to Refinitiv data.
Net revenue rose 17.5% to 9.9 billion reais, as the company
increased the average price of its products. Sales volume of
processed foods and meats rose 0.7% in the quarter, to a 1.1
million tonnes, it added.
BRF, the world's largest chicken exporter, derived more than
half its sales from Brazil, where net revenue rose almost 21%.
In Brazil, government cash payments to help the poor weather
the pandemic boosted spending on food, allowing BRF to pass on
higher grain prices to consumers. This partly offset higher feed
prices and COVID-19 related expenses, it said.
Internationally, net revenue rose 13.5%, but production
adjustments for the pandemic continued to affect operations. "As
a result, gross profit and margins (were) squeezed," BRF said of
pandemic-related issues that weighed on its export business.
In the Halal market BRF posted sales of 173,000 tonnes,
little changed from the year-ago period, as Saudi Arabia
maintained import restrictions.
Higher grains costs and other dollar-denominated expenses
also affected its exports' profitability, the company added.
($1 = 5.3858 reais)
(Reporting by Ana Mano in Sao Paulo
Editing by Chris Reese, Matthew Lewis and Richard Chang)