Why Did BRF Plunge 11.42% Despite Strong Q1 Earnings?

Generated by AI AgentAinvest Movers Radar
Friday, May 16, 2025 5:15 am ET1min read

On May 16, 2025, BRF's stock experienced a significant drop of 11.42% in pre-market trading, reflecting a notable shift in investor sentiment.

Marfrig, a prominent Brazilian meat processing company, has announced plans to acquire the remaining shares of

S.A. This strategic move involves an offer of BRL3.5 billion for the acquisition, with an additional BRL2.5 billion distribution. The deal is expected to be officially announced later on Thursday, marking a significant development for both companies.

BRF reported strong financial results for the first quarter of 2025, with consistent growth and record figures. The company's net revenue increased by 14% to BRL 61.4 billion, and its EBITDA reached BRL 10.5 billion, more than doubling the previous year's performance. The company also achieved a significant reduction in leverage, reaching 0.75x EBITDA compared to 2x in 2023.

Despite these positive developments, BRF faces potential challenges in 2025, including cost pressures, inflation, and regulatory restrictions that limit exports to China. The company acknowledges the need for continuous improvement in operational efficiency and market execution to maintain its strong performance.

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