The amount BRF invested in its business has dropped by nearly 20% between the second and third quarters of 2017 due to “more challenging macroeconomic and market scenarios,” the business said.
The company pumped $111m (R$369m) into its operations in the third quarter of 2017. Cash was spent on biological assets, supporting efficiency and growth targets, with a small sum allocated for leasing undisclosed items.
This figure was significantly lower than investment spend for the second quarter, when $138m (R$457m) was spent by BRF, which claims to be one of the world’s biggest food companies.
A cut to investment comes as Brazil’s economy plods on with a weak recovery, following a two-year recession many have described as the worst in the country’s history.
Data from the Organisation for Economic Development (OECD), though, suggests inflation has started to fall and could end the year below the Brazilian’s government’s target of 4.5%. This “should support a stronger recovery of investment”, according to the OCED, which said lower inflation could ease monetary pressure on firms.
BRF did not say whether it planned to spend more in the final quarter of the year.
Domestically, BRF delivered stable volume growth for its processed foods division, with sales rising by 3% year-on-year. This comes after the business said it had focused efforts on driving a “sustained enhancement in trade execution” to win new customers.
Recently launched subsidiary OneFoods, possibly the world’s largest halal meat company, delivered “healthy” financial results, BRF said. Sales in Turkey “exceeded expectations”, vindicating the company’s decision to buy the country’s biggest poultry processor, Banvit, for $470m.