BRF SA climbed the most in three years as first-quarter profit beat estimates, indicating that Brazil’s biggest food maker is weathering the nation’s economic slump.
Shares rose 9 percent to 65.12 reais at the close of trading in Sao Paulo, its biggest advance since July 2011. The stock was the best performer on the benchmark Ibovespa equity index, which fell 0.9 percent.
The Sao Paulo-based company was able to raise domestic prices 9.8 percent in the first quarter from a year earlier, according to a statement on its website. Adjusted net income increased 46 percent to 461.6 million reais ($157.1 million), beating the average estimate from seven analysts surveyed by Bloomberg.
“Despite the alleged crisis in Brazil, BRF has been showing good results in the domestic market,” Abilio Diniz, the company’s chairman, said on a conference call with analysts.
BRF’s result’s were “satisfactory despite the more adverse internal and external conditions,” analysts at brokerage firm Concordia Corretora wrote in a research note to clients Wednesday.
A central bank survey published Monday showed analysts forecast Brazil’s economy will contract 1.1 percent this year after expanding 0.1 percent in 2014.