- BRF recorded a quarterly net loss of 137 million reais ($26 million).
- Analysts polled by Refinitiv had predicted a 64.8 million real profit.
- High-interest rates have a negative impact on business profits by increasing the cost of its debt.
Wednesday, Brazilian food processor BRF SA (BRFS3.SA) reported a net loss that decreased in the third quarter but fell short of analysts’ expectations for a slight profit, due to rising debt expenses and interest rates.
BRF, which exports pigs and poultry throughout Latin America, Asia, Africa, and the Middle East, recorded a quarterly net loss of 137 million reais ($26 million) compared to a loss of 277 million reais a year ago.
Refinitiv polled analysts who predicted a 64.8 million real profit.
BRF stated that high-interest rates have a negative impact on business profits by increasing the cost of its debt. Interest on loans and financing amounted to 474 million reais, up 25.3% from a year before, the report stated.
The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of BRF were in line with the consensus forecast of 1.42 billion reais.
The group’s net revenue increased by 13.4% to 14.05 billion reais, while revenue from Brazil, its largest market, increased by 6.6% to 6.81 billion reais.
It increased its margins from sales to China, Japan, and South Korea to generate 6.54 billion reais in export revenue, a 7.4% increase over the previous year.
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