- BRF had a mixed fourth quarter, with improved results in Brazil offset by challenges in the International business largely beyond management's control.
- I was impressed with the growth in value-added products in both Brazil and International, and continuing to grow (and gain share) with higher-value packaged/processed foods is a growth cornerstone.
- China remains a good market for more commoditized protein exports, but the Mideast/Halal operations remain pressured by the pandemic and politics.
- Mid-to-high single-digit revenue and FCF growth can support a fair value for the ADRs above $5; it will take time for the Street to trust this name again, but the rewards look worthwhile.
For further details see:
BRF Makes Progress In Brazil, Finds Challenges Abroad