- BRF posted mixed fourth quarter results, with slightly better-than-expected EBITDA driven by stronger results in the halal and direct export businesses, while Brazil underperformed.
- BRF's Brazilian operations are getting squeezed by higher input prices and limited pricing power, as reduced consumer purchasing power is hitting the value-added business.
- Marfrig is looking to take a more active role with its large investment stake, and has proposed a new slate of directors that would significantly change BRF's board.
- A takeover from Marfrig looks more likely now, but the timing and valuation are very much uncertain; BRF's standalone value looks to be around $5/ADR, but with significant execution/operating risks.
For further details see:
BRF SA - A Little Light, But A Lot Of Tunnel