BRF SA reported second-quarter earnings of $130.7 million, or 8 cents per share, on revenue of $2.71 billion as the chicken, beef and pork producer navigated avian influenza restrictions that limited export opportunities.
The Sao Paulo, Brazil-based company achieved what it called the best first half in its history, with EBITDA reaching 5.3 billion reals (US$921 million) and income of 1.9 billion reals (US$330 million). Net revenue totaled 15.4 billion reals (US$2.68 billion), representing a 3% increase compared to the same period in 2024.
Avian influenza, however, imposed significant restrictions on chicken exports, affecting profitability in key markets. Export markets including China and Europe remained closed due to the outbreak. The company also faced challenges maintaining profitability in Turkey due to excess poultry supply and local economic pressures.
Despite commodity price decreases for grains, cost reductions have not yet fully materialized in BRF's unit costs. The company reported increased expenditures, particularly in labor costs, attributed to low unemployment rates in Brazil.
Pet food segment shows growth momentum
According to the company, BRF's pet food division demonstrated strong performance in the second quarter, expanding its active client base by 8% year-over-year. This growth enabled increased sales volumes and higher segment revenue during the period.
The company completed implementation of a unified ERP system using SAP, advancing integration initiatives focused on supplies, industrial operations and logistics. BRF highlighted its feline product portfolio during the quarter, increasing visibility for this higher-margin product category.
The pet food division executed digital communication campaigns for its GranPlus and Biofresh brands, emphasizing flavor profiles and fresh ingredient inclusion. BRF strengthened veterinarian relationships by sponsoring the Cat Congress, Brazil's largest feline-focused industry event, showcasing its GranPlus, Guabi Natural and Biofresh brands.
During the quarter, BRF conducted grain arbitrage operations between regions to reduce origination costs, contributing to the segment's results.
According to Petfood Industry's Top Pet Food Companies, BRF Pet SA was established in 2021 and entered the pet food market through acquisitions of Hercosul and Mogiana Alimentos, investing R$1.35 billion (approximately US$234 million). These acquisitions positioned BRF Pet among the top three pet food producers in Brazil, capturing roughly 10% of the domestic market share. BRF Pet also exports to markets in the Caribbean, Europe and South America.
