BRAZIL – BRF, a leading Brazil meat company has unveiled a new 10-year plan christened Vision 2030 where it intends to invest more that BRL 55 billion ($10.7 billion) over the next decade, in order to grow its business.
The bold move is in an attempt by one of the biggest food companies in the world to expand its international presence, cement its leadership with high-added value brands and provide increased return.
In its new 10-year plan, BRL has also set a goal to more than triple its revenue, aiming to record annual revenue higher than BRL 100 billion ($19.5 billion) by 2030.
BRF’s growth strategy looks to achieve local presence in some of the world’s largest added-value consumer centres, as well as increasing share in segments such as ready meals and pet food.
According to its securities filing, the company hopes to access markets that represent two thirds of global consumption.
Over the next ten years, BRF says it will pursue leadership in the leader in the Brazilian ready meals market and the high-added value pork segment, which it claims offers the potential to quintuple its size in the country.
The owner of the Sadia and Perdigão brands also plans to strengthen its position in the meat substitutes market and new sources of protein.
According to Reuters, the news by BRF were received well by investors with company shares surging to almost 9% after it announced expansion plans focusing on growth at home and in halal markets like Turkey and Saudi Arabia.
BRF says that the organic investment will also go towards implementing a macro sustainability plan with environmental, social and corporate governance commitments.
“We intend to further establish ourselves as a global food company with high added value, with a portfolio of strong brands and increasingly practical, tasty, high-quality and reliable products whenever our clients and consumers want, wherever they want and however they want,” said BRF global CEO, Lorival Luz.
The company’s new 10-year vision plan follows recently released third quarter results where it turned a profit driven by a strong performance in its home market, slightly beating expectations, according to a security filing on Monday.
BRF’s net revenue for the quarter rose 17.5% to 9.9 billion reais while profits for the period amounted to 218.7 million reais ($40.61 million), according to data from Refinitiv.
“Our intention is to operate sustainably, taking the main lead and being agents of transformation. The results we have presented so far demonstrate that we have discipline and maturity to start a new growth cycle over the next decade,” added Luz.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
