logos of brazilian meatpacker brf sa are seen in the headquarters in curitiba brazil october 1 2019 reutersrodolfo buhrer sao paulo may 5 reuters  brazilian food processor brf sa brfs3sa on thursday attributed disappointing firstquarter results to a rise in costs and inflation in its domestic market and vowed to boost its margins and return to profitability in separate calls with analysts and journalists to discuss the results brf chief executive officer lorival luz said management is preparing measures to simplify the companys structure declining to elaborate he said the plan does not involve asset sales or factory closures we will change the way we operate in all areas of the company we will simplify processes and procedures luz said adding that some of the measures will be introduced this month the aim is to become more dynamic and effective to work with agility towards our goals of growing and posting profits in a sustainable way the poultry and pork processor posted a loss of 15 billion reais 2985 million in the first quarter and burned more than twice that amount in cash as it weathered the economic downturn in brazil the results reflected poor food sales and margins in the south american country and the impact of a derivativerelated writeoff of 406 million reais brfs new chief financial officer fabio mariano said the expense tied to a corn derivative position had to be recognized in the first quarter when we look back it was not quite the right decision he said in response to a question from reuters referring to the merit of that hedge position brf shares were down around 12 at one point in morning trading before paring losses to trade 63 lower in sao paulo making it one of the biggest losers on the exchange credit suisse analysts said brf was going through testing times we believe consensus will significantly trim their estimates to reflect the somewhat unexpected new scenario the analysts wrote the company’s production chain is long and complex which demands a few quarters to get it back on track again referring to the firstquarter results jp morgan said we didn’t see that coming and downgraded the stock to underperform we think the macro scenario remains challenging with corn prices near alltime highs and logistics costs at elevated levels while china lockdowns pose risks to a big part of brfs export market jp morgan said reporting by ana mano additional reporting by andré romani editing by chizu nomiyama and paul simao