2018.02.2315:15:00UTC+00BRF: Net Loss Rises 77.4% In The 4Q17

Brazilian food processor BRF net loss increased 77.4% in the last quarter of 2017 from a year before, to R$ 784 million (US$ 240.5 million), missing market estimates of a R$ 187.52 million profit. In 2017 as a whole, the company recorded a net loss of R$ 1.099 billion.

According to BRF, a large part of the losses came from "exceptional operating provisions," which had a total impact of R$ 453 million on the company's EBITDA - R$ 206 million related to the adjustment to the realizable value of inventories civil and labor lawsuits at OneFoods

BRF's net revenue grew 3.6% in the fourth quarter from a year earlier, to R$ 8.901 billion, below market expectations (9% increase, to R$ 9.249 billion). Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 38.5%, to R$ 645 million, while analysts predicted a 110% increase, to R$ 1.173 billion.

BRF sales volume in the quarter rose 8.1%, to 1.306 billion tons. The average price (ROL) was R$ 6.82, down 3.6% in the quarter, totaling R$ 8.9 billion in the quarter, up 3.6%. In the fourth quarter, the company's gross margin was 21.1% or 1.4 percentage points (pp) below the margin for the same period in 2017.

At the end of the fourth quarter, the company's net debt amounted to R$ 13.310 billion, from R$ 13.4 billion at the end of the previous quarter.