Analysts had predicted net income of 339.57 million reais for BRF, which makes pork and poultry products.

Adjusted earnings before interest, tax, depreciation and amortization, a measure of operating income known as EBITDA, was 1.9 billion reais, above the consensus of analysts expectations of 1.79 billion reais.

Factors contributing to the positive performance include a sharp drop in the price of corn, a key feedstock ingredient.

A recovery of export markets and 66 new authorizations for BRF export plants also helped the company "to end the year better than it started," CEO Miguel Gularte said in comments about results.

In spite of a strong fourth quarter, BRF lost 1.87 billion in 2023, marking the second consecutive yearly loss for the world's largest chicken exporter.

Still, BRF said higher fresh meat prices drove a return of the double-digit EBITDA margins in the final quarter, referring to the international segment.

The company added profitability rose across geographies and highlighted market share gains in the Gulf region, a key market where it sells "halal" products, which are produced according to Muslim dietary requirements.

The Sadia and Banvit brands remain market leaders in its halal segment, BRF said.

In Brazil, the company posted EBITDA margin of 15.6%, higher than the 9.1% recorded in the same quarter of the previous year.

BRF said net sales in the fourth quarter were 14.4 billion reais, 2.3% below the fourth quarter of 2023.

In the whole of 2023, BRF presented reported EBTIDA of 4.7 billion reais, 15% higher than 2022 despite a global chicken glut, BRF said.

($1 = 4.9799 reais)

(Reporting by Ana Mano; Editing by Steven Grattan)

By Ana Mano