BRF defends investment in brand Perdigão

The President of the BRF, Pedro would do, and the President of the Board of Directors, Abilio Diniz, returned to defend the company's decisions yesterday to invest hard in the relaunch of the brand Perdigão and keep prices in Brazil, noting that the measures are part of a long-term strategy.
At an event in New York, said an aggressive restoration Would of Perdigão in some categories in the Brazilian market makes sense, at a time when the company earns money with good results in its international operations. He also confirmed that the prices of typical products, such as peru, chester and Gammon, will not increase at the end of this year.
On Friday, shares of the company fell nearly 10% on the BM & FBovespa and its ADRs retreated 11.3% in New York, with investors disappointed with the disclosure of some numbers for the third quarter. The earnings before interest and taxes (Ebit) shrank from 410 million R$ in the third quarter of 2014, to 226 million R$, while the Ebit margin fell from 10.8% to 5.7%.
As on Friday in Sao Paulo, last in New York BRF executives sought to highlight that the retraction in the margins of profitability in Brazil derived from factors that should not be repeated. Spending on the relaunch of Perdigão in some categories, of which the company had left for definition of the Cade, made the margin Ebit 1.5 shrug the 1.6 percentage point compared to the third quarter of 2014, enhanced Augusto Ribeiro Jr., Vice President of investor relations and Finance of BRF.
Before the restrictions of Cade, Perdigao had 25 percent of the market. He emphasized the potential of the brand would, an asset of the BRF, next to the sound. In July, the company relaunched ham, and pepperoni here with Pandey.
The dollar also pushed sharply higher costs, said Faria. This affected the margins, at a time when the BRF held prices. A provision of R$ 185 million for operations in Venezuela also impacted the result. He noted, too, that the Brazilian economy is in a "tougher" and that the company faces more competition. As is evident, the JBS has invested heavily in the Seara brand.
Diniz said the goal of the company is always the best, and to be the largest in particular market is a result of that effort. Commenting on the fall of shares on Friday-yesterday the ADRs rose 0.07%-, the manager stated that he is not happy with the reaction of investors, but noted that the command of the company has done what's best for the company. "We play for the long term, not the short term."
When he came to say that the company will not raise prices of Christmas-related products, such as peru, Do not ruled out adjustments in other product. According to him, the company monitors the situation and will choose the "right time" for the adjustments.
For the Executive, the situation of the Brazilian economy must still "get worse before it gets better." Faria said, however, that the BRF focuses on factors that can control, such as productivity and costs. And showed optimism when dealing with the performance of international operations. Today, about 55% of the revenue of the BRF comes out of Brazil. One of the highlights is the region for Middle East and Africa, where net operating revenue grew by 26.2% in the third quarter compared to the same period in 2014, to 1.9 billion R$. Total net revenue of the BRF in the period was 8.3 billion R$, 14.4% in the third quarter of 2014.