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BRF SA Should Show Sales Growth During The Pandemic

May 03, 2020 3:32 PM ETBRF S.A. (BRFS)2 Comments
James Cherry profile picture
James Cherry


  • My current estimates have BRF SA's 2020 Net Revenue growing by at least 10% year over year.
  • The company's decision to hire more people prove that they are working to keep up with demands.
  • BRF SA is a company worth analyzing for long-term investors.

Brazilian Food Processor, BRF SA, is showing signs that its 2020 results will not be negatively affected by the pandemic. Even though the company is not marketing its success to the masses, it is showing small discreet messages that lead me to believe that they will be successful in 2020. In my opinion, the company is doing the right thing by not marketing itself during such hard times as I think it would cause lousy press.

I will discuss the four factors that I believe are signs that BRF SA will have above average sales this fiscal year. After reviewing the signs, I will use them as guidance for my valuation that I hope to complete by next week. Just a quick apology, several sources are in Portuguese, and I could not find an English equivalent version.

Hiring Workers During The Pandemic

During the beginning of the worst pandemic that we have ever seen, C level executives around the world held emergency meetings to come up with a strategy to keep their company as a going concern. Not at BRF SA, they drank some whiskey and decided to hire 2,000 more people to help them burn cash even faster. SARCASM! On April 1st, a NYSE:BRFS representative stated that the company had hired more people to keep up with production demands. The representative also said that they would not be laying off anyone in April or May. Unless you think that the C level executives are as irresponsible as I said sarcastically earlier than you should assume that they are ramping up production to meet demands. This increase in demand by more than they had the capabilities to meet demonstrates that it is more than produce on average, aka above-average sales.

Net Debt to EBITDA Ratio

March 3rd, BRF SA informed the

This article was written by

James Cherry profile picture
I am the Head of Content Strategy at Sproutfi, a fintech located in Brazil that is democratizing investing in Latin America.  I have over 13 years of experience in the Food Industry, ranging from plant engineer to Corporate Development and FP&A.You, the reader, will notice that most of my articles were written about investment ideas I was researching for my investments.My alma mater is the University of Arkansas, where I graduated with a BA and an MSc in Operations Management. I served in the United States Army for six years and was deployed several times, including in Iraq. After completing my military obligation, I moved to Brazil to begin my career in Finance. I received an MBA in International Business from FIA/FEA at the University of Sao Paulo. I have passed the Level 1 and Level 2 CFA Exams. My hobbies are: playing the guitar and drums, longboarding, mountain biking, scuba diving, reading non-fiction books, and giving financial advice to low-income households.Any article in Seeking Alpha reflects my opinion and not the opinion of Sproutfi.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (2)

James Cherry profile picture
@mr.jungle thanks for the news update
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