BRF pet food division expands client base by 8% in second quarter

BRAZIL – Brazilian food processor BRF SA grew its pet food customer base by 8% in the second quarter of 2025, even as avian influenza restrictions weighed on its poultry export business. 

The São Paulo-based company reported earnings of US$130.7 million, or 8 cents per share, on revenue of US$2.71 billion for the quarter.

The results marked what BRF described as the best first half in its history, with EBITDA reaching 5.3 billion reals (US$921 million) and net income of 1.9 billion reals (US$330 million). Overall net revenue totalled 15.4 billion reals (US$2.68 billion), up 3% compared to the same period last year.

Avian influenza restrictions weigh on exports

Despite the strong half-year performance, BRF continued to face headwinds from avian influenza, which closed off major poultry export markets, including China and Europe. 

The company also cited difficulties in Turkey, where an oversupply of chicken combined with macroeconomic pressures eroded profitability.

Cost relief from falling grain prices has not yet fully materialised, with BRF reporting that labour costs have risen due to Brazil’s low unemployment rate. These pressures partially offset gains achieved through operational efficiency and strategic cost management.

Pet food shows resilience and growth

While export restrictions dampened meat operations, BRF’s pet food business delivered strong momentum. The segment expanded its active client base by 8% year-on-year, driving higher sales volumes and revenue. 

The company credited new digital campaigns for its GranPlus and Biofresh brands, as well as increased visibility for its feline product line, which carries higher profit margins.

BRF further strengthened its position by sponsoring Brazil’s largest feline-focused industry event, the Cat Congress, where it showcased GranPlus, Guabi Natural and Biofresh brands. 

The company also conducted regional grain arbitrage operations to reduce sourcing costs, supporting the pet division’s results.

The pet food arm has grown rapidly since BRF entered the market in 2021 through the acquisitions of Hercosul and Mogiana Alimentos, an investment of R$1.35 billion (about US$234 million). 

Those deals catapulted BRF into the top three pet food producers in Brazil, capturing an estimated 10% share of the domestic market while also exporting to Europe, the Caribbean and South America.

Strategic commitment to pet food

After exploring a potential sale of its pet food unit in 2023, BRF ultimately decided to keep the business, citing its strong growth prospects and profitability.

In a statement, the company emphasised its long-term strategy:  “As the third-ranked player in the pet food market in Brazil and leader in super premium natural pet feed, the company will continue to drive growth in this segment by increasing distribution through specialised channels, strengthening brand strategy by segment and channel, consolidating integration synergies, and advancing the export expansion strategy.”

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