SAO PAULO, Aug 10 (Reuters) - Brazil's largest chicken processor BRF SA BRFS3.SA on Friday posted a wider-than-expected quarterly loss, hit by trade embargoes triggered by allegations it bribed food inspectors, while a nationwide truckers' strike also weighed on results.
BRF, in its first results after a management shakeup, lost 1.574 billion real ($410.54 million) in the second quarter, wider than the 545.12 million real net loss expected by analysts, according to a Thomson Reuters consensus estimate.
BRF said adjusted earnings before interest, tax, depreciation and amortization (EBITDA), a gauge of operating performance, fell 47 percent to 373 million reais, below analysts' estimates of 420.47 million reais.
Without the adjustments, EBITDA would have been a negative 289 million reais in the quarter, BRF said in a securities filing.
BRF said charges related to its role in ongoing food sector probes totaled 288 million reais in the last quarter, which impacted the EBITDA line and margins. As part of the "Weak Flesh" probe kicked off last year, police accused scores of people, including health inspectors and certain meatpackers, of colluding to evade safety checks. company also reported a direct loss of 75 million reais related to the truckers protests, which poultry and pork producer group ABPA said halted production at 167 processing plants in Brazil. The sector estimated overall losses related to the stoppage at 3 billion reais, BRF said. embargoes imposed after the food sector scandal also weighed on results, BRF said. The European Commission banned imports from 12 of its meat processing plants.
"We already filed an appeal with the European Commission Court of Justice and are awaiting the decision," BRF said.
As part of a broad corporate restructuring proposed by the company's new managers, BRF put assets in Argentina, Europe and Thailand on sale, hoping to raise 5 billion reais to cut debt, a commitment which the company reiterated. the earnings release, BRF said also it had identified "other opportunities" that will positively impact EBITDA going forward, without giving details. ($1 = 3.8340 reais)