Stock Market News

Brazilian food processor BRF CEO resigns, shares close lower

2022.08.31 00:53

Brazilian food processor BRF CEO resigns, shares close lower
FILE PHOTO: Meat processing company BRF SA’s logo is pictured in its unit in Fortaleza, Brazil January 10, 2019. REUTERS/Paulo Whitaker

By Ana Mano and Gabriel Araujo

SAO PAULO (Reuters) – Brazilian food processor BRF SA (NYSE:BRFS) said on Tuesday that chief executive Lorival Luz has resigned and will be replaced by Miguel Gularte, a top executive at beef-packer Marfrig Global Foods SA.

Shares in the poultry and pork processor were around 6% higher in early trading in Sao Paulo, but closed 1.10% lower at 16.19 reais ($3.17) as BRF investors digested the news.

“To some extent, Miguel Gularte can be described as a beef guy,” BTG Pactual analysts said in a note to clients.

Whether he can reposition BRF to face stiff competition in Brazil remains an open question. “These are very different industries and require a different set of skills,” BTG said comparing beef operations to pork and poultry processors.

BRF said the move does not reflect an intention to merge the two companies, even though the market has speculated that for some time.

Marfrig, which owns 33.27% of BRF, has said previously it was only interested in a passive stake in BRF.

But BTG analysts see Gularte’s appointment as “yet another sign of how Marfrig is effectively taking control and influencing BRF’s operations.”

XP (NASDAQ:XP) analysts said in a note Gularte’s appointment was “unexpected,” also highlighting the fact his experience comes from the beef sector.

Still, XP believes Gularte “should be able to make BRF more agile, removing discomforting inertia that was responsible for lost opportunities in BRF’s past.”

BRF, owner of well known brands Sadia and Perdigao in Brazil, has been reeling from high cost inflation and makes most of its sales in the domestic market.

Unlike rivals JBS SA (OTC:JBSAY) and Marfrig, BRF does not process cattle or owns plants in countries like the United States.

Gularte was chief executive of Marfrig until today’s announcement.

Marfrig, whose shares dropped 3.78% after the bell on Tuesday, named Rui Mendonca as new CEO for South America replacing Gularte.

($1 = 5.1134 reais)

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 97,424.10 1.40%
ethereum
Ethereum (ETH) $ 3,330.57 2.79%
tether
Tether (USDT) $ 1.00 0.00%
solana
Solana (SOL) $ 247.83 4.47%
bnb
BNB (BNB) $ 652.93 2.72%
xrp
XRP (XRP) $ 1.37 11.67%
dogecoin
Dogecoin (DOGE) $ 0.418106 11.33%
usd-coin
USDC (USDC) $ 1.00 0.06%
cardano
Cardano (ADA) $ 1.00 8.75%
staked-ether
Lido Staked Ether (STETH) $ 3,331.35 3.18%
tron
TRON (TRX) $ 0.205301 6.66%
avalanche-2
Avalanche (AVAX) $ 40.24 6.75%
stellar
Stellar (XLM) $ 0.527585 20.43%
the-open-network
Toncoin (TON) $ 6.03 1.60%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 9.10%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,951.94 2.52%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,220.05 1.11%
polkadot
Polkadot (DOT) $ 8.54 4.85%
chainlink
Chainlink (LINK) $ 16.71 3.74%
bitcoin-cash
Bitcoin Cash (BCH) $ 494.87 8.16%
weth
WETH (WETH) $ 3,330.05 2.83%
sui
Sui (SUI) $ 3.28 8.96%
pepe
Pepe (PEPE) $ 0.00002 9.96%
leo-token
LEO Token (LEO) $ 8.68 1.14%
near
NEAR Protocol (NEAR) $ 6.46 0.32%
litecoin
Litecoin (LTC) $ 95.61 7.28%
aptos
Aptos (APT) $ 12.01 7.12%
uniswap
Uniswap (UNI) $ 10.55 1.58%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,512.84 2.56%
hedera-hashgraph
Hedera (HBAR) $ 0.144529 4.69%
usds
USDS (USDS) $ 0.999907 0.10%
internet-computer
Internet Computer (ICP) $ 10.86 7.51%
crypto-com-chain
Cronos (CRO) $ 0.186921 6.22%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.545787 3.58%
ethereum-classic
Ethereum Classic (ETC) $ 28.15 7.63%
render-token
Render (RENDER) $ 7.53 5.20%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.13%
kaspa
Kaspa (KAS) $ 0.149308 7.49%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.45 1.62%
bittensor
Bittensor (TAO) $ 503.43 5.83%
celestia
Celestia (TIA) $ 8.32 31.45%
whitebit
WhiteBIT Coin (WBT) $ 24.51 1.19%
dai
Dai (DAI) $ 1.00 0.00%
arbitrum
Arbitrum (ARB) $ 0.830119 3.78%
bonk
Bonk (BONK) $ 0.000045 12.29%
cosmos
Cosmos Hub (ATOM) $ 8.61 5.09%
mantra-dao
MANTRA (OM) $ 3.70 2.98%
vechain
VeChain (VET) $ 0.040882 6.88%
filecoin
Filecoin (FIL) $ 5.46 2.22%
okb
OKB (OKB) $ 53.19 4.76%