Funds pressure BRF for results
The talks about Abilio Diniz becoming chairman of the board of Brasil Foods come when the current management of the company has been pressured by shareholders to be more aggressive. One of the main points of disagreement lies is in pricing policy. Investment funds, the main shareholders in BRF, think the company should use more of its firepower achieved from the merger between Perdigão and Sadia.
"BRF has the potential to be the Ambev of food," says a source close to one of the funds. Although BRF's market value has doubled since 2009, when the merger was announced, the funds are unhappy with the strategy adopted by the company.
2012 was not easy for BRF. The company's net revenues reached R$ 20.4 billion in January-September, up 9.5% on a year earlier, but net income was R$ 250.5 million, down by 80%.
BRF was hampered by rising costs caused by high grain prices, the costs involved in the sale of assets and brands imposed by Brazil's antitrust body, CADE, and the slowdown in exports.
Information provided by O Estado de S. Paulo