BRF expanding in Argentina, Thailand, UK

BRF, a Brazil-based meat, poultry and food company, has announced expansion moves in Argentina, Thailand and the United Kingdom.
“This is a milestone in the company's history, a clear message that our expansion project is serious and consistent,” said BRF’s Global CEO, Pedro Faria, in response to the announcement about the company’s latest acquisitions.
BRF says the transactions are in accordance with its strategic plan of globalization, accessing local markets, strengthening BRF’s brands, distribution and expansion of its product portfolio around the world.
In Argentina, BRF has signed a binding offer with Pampa Agribusiness Fund L.P. and Pampa Agribusiness Follow-on Fund L.P for the acquisition of Eclipse Holding Cooperatief UA, a Dutch company that controls Campo Austral. Campo Austral is a group of companies with fully integrated business operations in the pig meat sector, including the cold cuts market. The business is valued at US$85 million.
“We will strengthen our business in the categoriesof cooked ham, salami,bologna andpork cuts,” Faria said.
BRF has reached an agreement over the purchase of all shares for Golden Foods Siam of Thailand. The deal – valuing the company at US$360 million, includes Golden Foods’ assets in Europe as well as Thailand. Golden Foods Siam is one of the leading poultry producers in Thailand and it has fully integrated operations in 15 markets across the world.
In the United Kingdom, BRF has signed a binding memorandum of understanding (MOU) with the shareholders of Universal Meats (UK) Ltd, which will lead to its acquisition of the entire issued share capital of Universal. Universal is a food distributor in the UK, focused on food service. Assuming the conditions in the MOU are met, BRF will acquire Universal for UK£34 million (around US$50.8 million).
As recently as October, BRF, formerly Brasil Foods, reached agreement over the acquisition of other businesses in Argentina, Qatar and the U.K.
According to a recent survey by Pig International, BRF was the world’s No.5 pig producer and it is also among the leading poultry meat producers, even before these latest acquisitions.

BRF finalizes purchase of Argentinian brands

Brazilian meat, poultry and food company BRF has finalized its acquisition of the Vieníssima, GoodMark, Manty, Delícia, Hamond, TresCruces and Wilson brands, the company announced on October 16. The transaction is valued at US$43.5 million.
All of the recently acquired brands are known in Argentina. The acquisition was carried out through BRF subsidiaries Quickfood S.A. and Avex S.A., both of which are also headquartered in Argentina.
With the acquisition, the company also expands its presence in the sausage, hamburger and margarine business.
In making the announcement of the acquisitions, BRF stated that the transaction is in line with BRF’s strategic plan of globalizing the company by means of reaching local markets, strengthening BRF‘s brands and distributing and expanding its product portfolio around the globe.

Other recent BRF growth initiatives

BRF, formerly known as Brasil Foods, has been actively involved in growth projects that expand its global presence. The company earlier in October announced that it had entered a memorandum of understanding with Qatar National Import and Export Co. (QNIE) for the acquisition of a part of QNIE’s frozen distribution business.
 In April, BRF formed a joint venture with the U.K.’s Invicta Food Group with the main objective to distribute processed food in the U.K., Ireland and the Nordic countries of Norway, Sweden, Finland, Iceland and Denmark. Also, in June, BRF finalized the formation of a joint venture company with Singapore Food Industries, known as SATS BRF Food, to create a food distribution and meat processing business that offers branded products initially for the Singapore market and later also for other parts of Southeast Asia.

BRF buying part of Qatar National Import and Export Co.

BRF, a meat, poultry and food company headquartered in Brazil, has signed a binding memorandum of understanding with Qatar National Import and Export Co. (QNIE) for the acquisition of a part of QNIE’s frozen distribution business in Qatar.
QNIE has been BRF’s distributor in the State of Qatar for more 40 years.
Subject to the satisfaction of the conditions precedent set forth in the memorandum of understanding, the parties will execute the definitive documents providing for the acquisition of the business, based on a total enterprise value of US$140.0 million. The acquisition will be made in accordance with local laws and regulations of the State of Qatar.
According to a statement issued by BRF, the QNIE transaction is in line with the company’s strategic plan of globalization, accessing local markets, strengthening BRF’s brands, distribution and expansion of its product portfolio around the globe.
BRF’s decision to purchase part of QNIE comes on the heels of the announcement of another planned acquisition. The company, formerly known as Brasil Foods, announced in early October that it intended to expand its presence in Argentina by acquiring the Vieníssima, GoodMark, Manty, Delícia, Hamond, Tres Cruces and Wilson brands.
In June, BRF finalized a joint venture with Singapore Food Industries, which will be known as SATS BRF Food and will create a food distribution and meat processing business that offers branded products initially for the Singapore market and later also for other parts of Southeast Asia.

BRF plans acquisition to grow presence in Argentina

Brazilian meat, poultry and food company BRF has plans to expand its presence in Argentina with the proposed acquisition of the Vieníssima, GoodMark, Manty, Delícia, Hamond, Tres Cruces and Wilson brands.
With the acquisition, the company also expands its presence in the sausage, hamburger and margarine business.
The transaction is valued at US$43.5 million and is being carried out by BRF subsidiaries Quickfood S.A. and Avex S.A., both of which are headquartered in Argentina.
The transaction is subject to the fulfillment of certain conditions precedent by the parties, as well as an eventual approval by the competent administrative authorities.
In making the announcement of the planned acquisitions, BRF stated that the transaction is in line with BRF’s strategic plan of globalizing the company by means of reaching local markets, strengthening BRF‘s brands and distributing and expanding its product portfolio around the globe.
BRF, formerly known as Brasil Foods, has been actively involved in growth projects that expand its global presence. In April, the company formed a joint venture with the U.K.’s Invicta Food Group with the main objective to distribute processed food in the U.K., Ireland and the Nordic countries of Norway, Sweden, Finland, Iceland and Denmark. Also, in June, BRF finalized the formation of a joint venture company with Singapore Food Industries, known as SATS BRF Food, to create a food distribution and meat processing business that offers branded products initially for the Singapore market and later also for other parts of Southeast Asia.

BRF again chosen for Dow Jones Sustainability Index

BRF, a Brazil-based meat, poultry and food company, has been selected to be part of the Dow Jones Sustainability Index (DJSI) - Emerging Markets for the fourth consecutive year.
Launched in 1999, the purpose of the DJSI is to evaluate performance of sustainability among the companies in the economic, environmental and social areas. The analysis incorporates management, practices and results for three dimensions: Economic, Social and Environmental, covering innovation, supply chain management, strategies for climate change and stakeholder engagement. The index is a benchmark for investors that value best sustainability practices in the companies.
“BRF is constantly seeking to increase transparency and improve its results in terms of sustainable development, as this is one of its strategic pillars. We are committed to strengthening sustainable practices in our value chain and in our relationship with our main stakeholders,” the company stated.
Formerly known as Brasil Foods, BRF sold 1.826 million tons of poultry in 2014, according to the WATTAgNet Top Poultry Companies Database. The company is also one of the world’s largest pork producers.

BRF board approves share buyback program

The board of directors for Brazil-based meat and poultry company BRF has approved the company’s share buyback program. The goal of the program is to promote an efficient use of available cash resources in order to maximize the company’s capital allocation.
The terms of the buyback program are:

• The share buyback program will provide the acquisition of up to 14.5 million common shares, all book-entry shares and without face value, corresponding to 1.7 percent of the company’s share capital, excluding treasury shares;
• The company‘s free float, according to the definition given by Article 5 of CVM Instruction No. 10 of February 14, 1980, is 872,473,246 common shares, all book-entry shares and without face value, based on the shareholding position as of this date;
• The term of the share buyback program will be of 180 days from August 28, 2015 (inclusive), until February 24, 2016, and the executive board will be responsible to set the dates on which the buyback will be effectively executed. Any acquisition of shares will be compliant with the legal and regulatory blackout periods.
• The buyback transactions will be carried out through the following financial institutions:  Bradesco S.A. Corretora de Títulos e Valores Mobiliários, Itaú Corretora de Valores S.A., and  Merrill Lynch S.A. Corretora de Títulos e Valores Mobiliários.
• The shares acquired under the share buyback program can be canceled, used for the company‘s stock option plan or for any other plans approved by the company.

BRF finalizes sale of dairy division

Brazil-based meat, poultry and food company BRF in July finalized the sale of its dairy division to Lactalis do Brasil – Comércio. The transaction was valued at BRL2.1 billion (US$650 million).
The company’s intent to sell its dairy division was initially announced on September 3, 2015.
In selling its dairy division, BRF is expected to be able to concentrate more on its key product categories of broiler chicken, turkey and pork. One of the largest poultry producers in the world, BRF processes 1,831 birds annually, according to the WATTAgNet Top Poultry Companies Database.
According to a statement from Augusto Ribeiro Júnior, BRF chief financial and investor relations officer, the financial implications related to the transaction are being assessed by the company and will be recorded on its financial statements for the third quarter of the 2015 fiscal year.
The selling of its dairy division marks the second major transaction BRF has finalized in a month’s time. On June 3, the company announced it had officially formed a joint venture with Singapore Food Industries, known as SATS BRF Food, that will create a food distribution and meat processing business that offers branded products initially for the Singapore market and later for other parts of Southeast Asia.

BRF, Singapore Food Industries joint venture finalized

The formation of a joint venture in Singapore between Brazil-based meat and poultry company BRF and Singapore Food Industries has been finalized, BRF announced on June 3. The new venture, to be known as SATS BRF Food, will create a food distribution and meat processing business that offers branded products initially for the Singapore market and later also for other parts of Southeast Asia.
Under the arrangement, which was previously announced in April, BRF is investing US$19 million in a new venture to run meat processing facilities in Singapore. BRF will have a 49 percent stake in SATS BRF Food, with Singapore Food Industries as the majority partner.
Singapore Food Industries is a wholly owned subsidiary of SATS Ltd of Singapore, which operates airport logistics and catering services in the region.
The transaction involves a transfer of operations from Singapore Food Industries, including two meat processing plants. The transaction is in line with BRF‘s strategic plan of globalizing the company by means of reaching local markets, strengthening BRF‘s brands and distributing and expanding its product portfolio around the globe, the Brazilian company stated.
Formerly known as Brasil Foods, BRF processes 1.83 billion birds annually, according to the WATT Global Media Top Companies Database. The company’s key product categories include chicken, turkey and pork.

Brazil’s BRF approves share buyback program

The board of directors for Brazil-based meat, poultry and food company BRF has approved a share buyback program. The program was agreed upon at the board’s April 28 meeting.
The goal of the share buyback program is to promote an efficient use of available cash resources in order to maximize the company’s capital allocation. The program is expected to provide the acquisition of up to 16.6 million common shares, all book-entry shares and without face value, corresponding to 2.03 percent of the company’s share capital, excluding shares held by the administrators and treasury shares.
The term of the share buyback program will be of 90 days -- from April 29, 2015, until July 28, 2015 -- and the executive board will be responsible to set the dates on which the buyback will be effectively executed. Any acquisition of shares will be compliant with the legal and regulatory blackout periods.
The shares acquired under the share buyback program will be canceled, used for the company’s stock option plan or for any other plans approved by the company.
Formerly known as Brasil Foods, BRF processes 1.83 billion birds annually, according to the WATT Global Media Top Companies Database. The company’s key product categories include chicken, turkey and pork.

BRF invests US$19 million in Singapore venture

Brazil-based meat and poultry company BRF, the world’s largest exporter of poultry meat and the seventh-largest food company in the world by revenue, has invested US$19 million in a new venture to run meat processing facilities in Singapore.
Its investment gives it a 49 percent stake in SATS BRF Food Pte Ltd, with Singapore Food Industries as the majority partner in the joint venture. The formation of SATS BRF Food will create a food distribution and meat processing business that offers branded products initially for the Singapore market and later also for other parts of Southeast Asia.
Singapore Food Industries is a wholly owned subsidiary of SATS Ltd of Singapore, which operates airport logistics and catering services in the region.
The transaction due to be completed in early May 2015 involves a transfer of operations from Singapore Food Industries, including two meat processing plants. The transaction is in line with BRF‘s strategic plan of globalizing the company by means of reaching local markets, strengthening BRF‘s brands and distributing and expanding its product portfolio around the globe, the Brazilian company stated.
Formerly known as Brasil Foods, BRF processes 1.83 billion birds annually, according to the WATT Global Media Top Companies Database. The company’s key product categories include chicken, turkey and pork.

Brazilian company BRF cuts water use by 10 percent

Adopting new approaches to cleaning its poultry processing plants has helped Brazil meat and poultry company BRF significantly cut the amount of water it uses.
In the run up to World Water Day, BRF has announced that it consumed 10 percent less water in its facilities last year – a savings of almost 6 million cubic meters.
BRF notes that it has been collecting rainwater, implementing a culture of responsible water use and making its industrial processes more efficient. The amount of rainwater the company captured increased by 40 percent in 2014, surpassing 92,000 cubic meters.
Consumption of surface water was 6 percent lower last year, while use of underground water fell by 15 percent. The volume of water used coming from public supplies was reduced by about 27 percent.
BRF made an investment of BRL210 million (US$63.4 million) to reduce its environmental impact in 2014. Since 2013, the Brazilian company has been applying lean practices to a number of its poultry processing plants and other plants, and this will be further rolled out in 2015.

BRF suspends operations at two poultry processing facilities

Brazil’s BRF has suspended poultry processing activities at its facilities in Francisco Beltrao and Dois Vizinhos, Parana, as result of industrial action in the freight sector, which has extended to 11 states in the country.
Truck drivers are striking due to the low prices paid for freight and the high cost of gasoline. For BRF, this means that live birds cannot reach its processing facilities.
However, the problems are not restricted to BRF’s chicken processing plants. The company has issued a statement saying that it is making every effort to continue the cycle of production, and that it will do all that it can to prevent the death of birds on-farm and in transit due to a lack of feed, to prevent the loss of its health certification and exports, and to ensure the supply of food to consumers.
The strike, which is affecting almost half the country’s states, is said to be causing losses for the poultry industry in general by reducing the number of birds slaughtered and putting exports at risk.

BRF restructures management model in Brazil and abroad

Brazilian meat and poultry company BRF is introducing a new management model which is aligned to the growth and globalization process of the company is undergoing. The foundation of the model is based on strengthening the leading role and autonomy of the company´s regional structures in Brazil and abroad.
Under the new arrangement that begins in January, five general managers will report to the global CEO, and will be responsible for their business units which will be split by geographical area - Brazil, Latin America, Europe, Asia and Africa/Middle East. They will have the support of the corporate sectors such as Quality and Management, Innovation and Marketing, Supply Chain, Legal and Corporate Relations, Finance and People.
Flávia Faugeres, who was responsible for the company´s innovation and marketing area, will be the general manager of Brazil, where five regional leaders have also been created: the Northeast (head office in Recife), Midwest/North (Brasília), São Paulo (São Paulo City), South (Curitiba) and Southeast (Rio de Janeiro).
The general managers and regional leaders will play a decisive role in establishing BRF´s priorities in different markets, always in accordance with the clients and consumers and anchored by challenging plans and goals.
Each regional executive management will have its own teams to decentralize services, strengthen the structures at the business level and respond more efficiently to the demands of each market. Each region will have its own sales area, as well as trade marketing, commercial management, finance and human resources areas.
The changes reinforce the fundamentals of the management model the company has adopted in its global activity and is directed at bringing its processes and products into line with the different consumer profiles and habits, respecting the cultural nature of the areas where the company operates. It is also part of a combination of internal initiatives that started around two years ago, the benefits of which are already showing in BRF's results. These are based on pillars such as quality, meritocracy, cost rationalization, sustainable growth and the constant pursuit of efficiency.

BRF, Indofood forming joint venture company in Indonesia

BRF has signed a memorandum of understanding with PT Indofood Sukses Makmur Tbk (Indofood), for the incorporation of a joint venture company that will explore the poultry and processed foods businesses in Indonesia.
The joint venture company will represent BRF’s entry into Indonesia, a market with more than 250 million people that is experiencing a significant growth in protein consumption.
Indofood is one of Indonesia’s largest companies with operations in all stages of food manufacturing, from production of raw materials and their processing, to consumer products. Its business operations includes consumer branded products, flour milling, agribusiness, distribution, cultivation and processed vegetables. In the context of such a joint venture company, BRF will contribute with its knowledge in the protein-based food processing industry and Indofood will contribute with its market access in Indonesia, granting access to its extensive distribution network.
BRF and Indofood will each hold a 50 percent ownership in the joint venture company and, subject to the satisfaction of certain conditions precedent to be set forth in the definitive agreements, jointly plan to invest approximately US$200 million in the next three years.
This transaction is in line with BRF’s strategic plan for globalizing the company by means of accessing local markets, strengthening BRF’s brands, distributing and expanding its product portfolio around the globe.

BRF more than doubles profits in third quarter

• 

  Andrea Gantz

  Meat and poultry processor BRF more than doubled its profits during the third quarter of fiscal year 2014.

  From WATTAgNet:
  Brazilian meat and poultry processor BRF SA more than doubled its third-quarter profit from the same period of 2013. BRF’s net income rose 117 percent from a year earlier to BRL624 million (US$260 million), the company stated in a filing on October 30.
  BRF said the earnings reflected growing sales volumes and efforts begun in the first quarter this year to consolidate its sales force for smaller retail clients. The company also highlighted more efficient use of inventory levels in Brazil over the past year and improved profit margins from its sales in other countries.
  Sales in its biggest foreign market, the Middle East, were up 10 percent in volume and 18 percent in revenue due mainly to improved performance in Saudi Arabia, Kuwait, Oman and Yemen. Asia and Europe also posted better sales volumes and revenues.
  Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 61 percent from the third quarter of 2013 to BRL1.2 billion (US$500 million).
  Also in the third quarter, BRF named its new CEO.  Pedro Faria on September 25 was named the new global CEO, replacing Claudio Galeazzi, who will remain in the position until December 31. Currently, Faria is the CEO of the company’s international operations.
  BRF is the world’s second-largest poultry producer, trailing only Tyson Foods, according to the WATT Global Media Top Companies Database. 

BRF CEO and president retiring at end of 2014

Claudio Galeazzi is retiring as the global president and CEO of BRF, one of the world’s leading poultry producers. Galeazzi will remain in his current role until December 31.
The Brazilian company’s board of directors is starting the process to find a successor. Galeazzi will assist the board with the succession process.
A huge exporter, BRF has a global customer base, with its products reaching more than 110 countries. It produces 1.83 billion birds annually, according to the WATT Global Media Top Companies Database.
BRF has remained a successful business under Galeazzi’s leadership. The company ended ended the second quarter of fiscal year 2014 with an operating profit of BRL691.7 million (US$304.83 million), representing an increase of 37.6 percent over the same period of 2013. The results of BRF in the second quarter of 2014 reflect the strategy adopted by the new administration, with a focus on profitability and maximizing value. This performance demonstrates an increase in operating income of the company, an optimization of its investments and a consistent and sustainable effort for its working capital needs, the company stated.
In addition to producing broilers, BRF is also involved in turkey and pig production. The company produces 38.9 million turkeys annually.

BRF increases profitability in second quarter of 2014

Brazilian poultry company BRF experienced a strong generation of cash flow during the second quarter of fiscal year 2014, reaching BRL954 million (US$421.8 million), an increase of 161 percent when compared to the BRL365 million (US$161.39 million) achieved during the in the second quarter of 2013, an increase of 161 percent. This performance demonstrates an increase in operating income of the company, an optimization of its investments and a consistent and sustainable effort for its working capital needs.
BRF ended the second quarter of 2014 with an operating profit of BRL691.7 million (US$305.8 million), representing an increase of 37.6 percent over the same period of 2013. By achieving BRL1 billion (US$440 million), EBITDA in the second quarter of 2014 grew 25.1 percent from the same quarter of 2013, resulting in a margin of 13.0 percent. When comparing between the two periods, gross profit totaled BRL267.1 million (US$118.1 million), 28.1 percent higher.
The strategy to prioritize markets and more profitable products, as well as a good performance of fresh chicken and processed products in the domestic market, produced a breakthrough in the consolidated gross revenues, which reached BRL7.7 billion (US$3.4 billion).
BRF gross debt declines
BRF’s gross debt continued to fall, closing the period at BRL5.1 billion (US$2.25 billion), 14.6 percent down from the figure recorded in the first quarter of 2014. The level of gross debt to EBITDA of the last 12 months increases the strength of the company, certified by Standard & Poor's, which puts it in a comfortable situation to invest.
New BRF products released
In the period, BRF launched 24 products, 18 of them in the domestic market, 4 in foreign markets and 2 in the foodservice segment.
World Cup sponsorship deemed successful
The campaign #jogapramim made Sadia, sponsor of the Brazilian national soccer team, became one of the five most remembered brands related to soccer and the World Cup. The evaluation of consumers was quite positive, with over 80 percent approval and presence in the global trend topics. The move was important to strengthen the sports platform of the company, which now directs its efforts to the 2016 Olympic Games in Rio de Janeiro, an event which BRF is an official sponsor.

Brazil’s BRF reports strong first quarter across divisions

BRF finished the first quarter of 2014 with growth in earnings before interest, taxes, depreciation and amortization 7.1 percent higher at BRL861 million (US$387.9 million). Net profits for the period reached BRL314 million (US$141 million), up from BRL208 million (US$93.4 million) for the last period in 2013.
The company exported 535,300 tons of protein with a value of BRL3.1 billion (US$1.39 billion), a significant increase from the first quarter of 2013. On the home market, sales reached BRL3.2 billlion (US$1.44 billion), 3.6 percent up on 2013. The company notes that it has seen growth across all its divisions during the first quarter, with its food service offering growing by 14.4 percent. 

BRF profits up by 38 percent in 2013

Brazilian meat and poultry processor BRF closed fiscal year 2013 with net profit of BRL1.1 billion (US$474 million), a 38 percent improvement over 2012. BRF's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for 2013 totaled BRL 3.6 billion (US$1.55 billion), an increase of 35.3 percent, with an EBITDA margin improvement achieving 11.9 percent, compared with 9.4 percent last year.
The strong financial performance for 2013 reflects sustainable work done in 2013 involving major changes for the company. The new development cycle of BRF focuses on customers and consumers, but is aimed at improved efficiency long-term results. That focus, the company stated, has allowed the free cash flow to grow 10 times, going from BRL115 million (US$49.6 million) in 2012 to more than BRL 1.5 billion (US$646 million) in 2013.
BRF's net income for the year reached BRL30.5 billion (US$13.1 billion), 7 percent higher than in 2012, demonstrating the resilience of the company against challenging markets, as well as the strength of BRF's top two brands, Sadia and Perdigao.