Tuesday, August 5, 2014

Seeking Alpha: BRF SA Doing A Lot More With Less

Brazil's leading food producer, BRF SA (NYSE:BRFS) (also known as Brasil Foods), tends to be quite a bit more volatile than international peers like Nestle (OTCPK:NSRGY) and Unilever (NYSE:UL) or U.S.-centric companies like Hormel (NYSE:HRL). In the last quarter that volatility has worked in investors' favor, with a better than 13% gain that brought the year-to-date gain up above 20%.

What should be of more interest to long-term investors is the significant progress the company is making with its plans to streamline its operations and prioritize margins over volume. I don't expect BRF to continue delivering 10% beats at the EBITDA line, but the company's strong execution with this plan certainly helps management build credibility. These shares aren't exceptionally cheap right now, but I'm in no hurry to sell what I believe is one of the better-run Brazilian companies and one with significant growth potential for the long term.

Follow this link to the full article:
BRF SA Doing A Lot More With Less

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