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BRF announces that its board of directors has approved at a meeting held today the company's operational and financial restructuring plan with the aim of improving its capital structure by reducing its debt. The plan also includes strengthening its quality and management processes.
The starting point of this plan is the decision of the company to focus its operations on the Brazilian domestic market, Asia and the Muslim market. exclusive factories, which include Banvit's badets in Turkey. BRF has strong competitive advantages and ranks among the top positions.
As a result of this strategic direction, the plan includes the sale of operating units in Europe, Thailand and Argentina. It is important to note that the sale of these badets does not exclude exports to these markets.
The plan also covers the sale of real estate and non-operating badets and minority interests in companies. Another initiative is the completion of a debt securitization transaction.
It is planned to raise at least R $ 5 billion with the measures, so that the ratio of net debt to adjusted EBITDA is about 4.35 in December 2018, taking into account the recent high of dollar and impacts related to export restrictions, and less than 3.00x in December 2019.
The plan approved by the board of directors does not provide for the issuance of new shares.
The reinforcement of the cash register will also come from better management of stocks of raw materials (frozen products) and finished products. In this sense, the restructuring plan will continue, which aims to adapt the productive structure to market demand. In progress since March this year, the initiative included a readjustment of production lines, collective vacations and the reduction of about 5% of manufacturing operations personnel in Brazil.
A large part of the restructuring measures has already been achieved to be completed in the next 60 days with the latest adjustments in 22 of the 35 production units in the country. In order to minimize the impact on the communities, the Company benefited from the voluntary renewal of the factories and the reallocated teams. The company also sought dialogue with the relevant integrated producers to clarify the doubts and inform the next steps.
Efforts to optimize costs and increase profitability also include the simplification of the organizational structure with fewer Vice-Presidents. presidencies from 14 to 10, divided into three major regions. Three markets will be dedicated to the markets: Brazil, Halal (Muslim market) and International; operationally, there will also be three vice-presidencies: operations, operational planning (S & OP) and quality; and four corporate vice-presidents: Finance and Investor Relations, Strategic Planning and Management, Human Resources and Shared Services, and Institutions and Compliance.
The management of the company also reaffirmed its commitment to the safety and health of its employees. with total quality in its processes and with the ethics and transparency, fundamental pillars of its business strategy and basis of the relationship with all the public of interest of the company. In this sense, management has set the goal for the entire organization of the return of its shares to the ISE (Corporate Sustainability Index) and the Dow Jones Sustainability Index – Emerging Markets, which list benchmark sustainability companies on the São Paulo and New York Stock Exchanges.
This set of measures is a necessary prerequisite for the formulation of the strategic planning of the Company, which will be approved at the end of August and whose main objective is the establishment of A sustainable growth strategy discipline and excellence in all areas in which the company operates. The management system of the company will be completely reformulated, with the use of established tools such as management by directives and monthly monitoring of results at all levels through the methodology known as the PDCA name.
BRF believes that its vocation is constant and constant growth, responding to the needs and desires of its consumers and giving an adequate return to its shareholders. To do this, we rely on the commitment of our employees, the partnership with our integrated network, the strength of its brands, the exceptional quality of its products and its pioneering innovation.
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