BRF will create brand of processed products with focus on low income

São Paulo – the BRF will create a third brand of products, this time focused on the low-income segment, company executives said on Friday the market analysts.
The company, the largest exporter of chicken meat in the world and owner of brands Sadia and Perdigão, hopes to begin to work more intensively with the third mark from the first quarter of 2018. The company gave no details about the products where the brand new.
The Vice President of the company''s businesses in Brazil, Alexandre de Almeida said during a teleconference with analysts that the third brand will enable the BRF joining a market segment in which is not present today and that comprises more than 30% of the Brazilian market of processed foods.
"The third brand will have function to optimize the supply chain, allowing better use of leftover raw material," said the Executive.
The Chairman of the Board of BRF, Abilio Diniz, stated that the company is "very confident" about the creation of the new brand and that she should "Add market share" and raise the productivity of the Group since the production with a view to it will help occupy unused capacity of the company.
At 10:51, the actions of the BRF displayed high 3,5%, quoted at 40.38 reais, while the Ibovespa showed 0,3% devaluation.
The BRF closed the second quarter with a loss of 167 million dollars, down by cost impacts generated by the weak flesh, operation of the Federal Police, started in March and that hurt exports of the sector.
During the Conference call, company executives have said that they expect the third quarter of this year will be the last in which the company will capture the impact of the fall in the price of grains that has taken place since the end of last year. The BRF will still adopt policy of reducing grain stocks over the next few months.
Already on the Unit One Foods, dedicated to the production of food to the Middle East, the President of the BRF, Pedro Would, commented that it expects the unit from presenting two-digit margin after a second quarter in which the margin of earnings before interest, taxes, depreciation and amortization (Ebitda) fell from 15,2% a year earlier to 1,6%.
"We should see double-digit margins for One Foods in the third quarter, returning to historical levels in the fourth quarter," commented would. He said that the fall in unit margin occurred by high level of inventories and weaker demand and the company''s difficulties in making transfers.
On the financial front, the BRF has goal to reduce your net debt to a relationship about 2.5 times Ebitda by the end of 2018. At the end of the first half, the company''s leverage was 4.9 times compared to 1.99 time a year before.
The day before, the company announced that the Board of Directors decided to sell to all the 13,468,001 shares of the company held in Treasury, in order to strengthen the company''s cash and reduce debt levels.