BRFS - BRF SA Executing Well In Processed Foods But Seeing Ongoing Challenges Outside Brazil
- BRF did well on pricing in the third quarter, but volumes showed some pressure and costs hit margins.
- Management is focused on expanding its value-added portfolio of processed foods in Brazil, and is looking to invest in more digital capabilities.
- OneFoods remains pressured by geopolitical issues beyond management's control, and global commodity poultry spreads are lower on increased supply and higher costs.
- BRF is undervalued on a long-term basis, but weaker poultry spreads and uncertainties on near-term margins in Brazil still represent near-term headwinds.
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BRF SA Executing Well In Processed Foods, But Seeing Ongoing Challenges Outside Brazil