Brazilian food processor BRF SA, the world’s largest chicken exporter, swung back to profit after three quarterly losses on a combination of higher net revenue driven by an increase in sales volume and higher meat prices across geographies.
BRF reported a 191 million reais ($48.74 million) gain, according to a securities filing, while analysts had expected BRF to lose 50.2 million reais in the quarter.
BRF said net revenue rose by almost 18% to 8.33 billion reais in the second quarter.
BRF said its halal market sales rose by 12.5% in the quarter thanks to higher selling prices in Saudi Arabia, which enforces strict requirements to certify meat suppliers.
BRF said consolidated average selling prices rose by more than 17% in the second quarter. In Brazil alone, BRF said prices rose by an annualized 30% for chicken and 35% for pork.
The company said adjusted earnings before interest, taxes, depreciation and amortization, a measure of operating profit known as EBITDA, was 1.547 billion reais in the period, nearly double the average analyst estimate of 825.20 million reais.