BRF (BRFS) closed at $4.48 in the latest trading session, marking a -1.32% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.13%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.39%. The chicken, beef and pork producer's shares have seen a decrease of 1.09% over the last month, not keeping up with the Consumer Staples sector's gain of 2.28% and the S&P 500's gain of 2.43%. Analysts and investors alike will be keeping a close eye on the performance ...

Core Insights - Investors are evaluating BRF (BRFS) and Lamb Weston (LW) for potential value opportunities in the Food - Miscellaneous sector [1] Valuation Metrics - BRFS has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while LW has a Zacks Rank of 5 (Strong Sell) [3] - The forward P/E ratio for BRFS is 9.66, significantly lower than LW's forward P/E of 14.27 [5] - BRFS has a PEG ratio of 0.26, suggesting better value relative to its expected EPS growth, compared to LW's PEG ratio of 6.18 [5] - The P/B ratio for BRFS is 1.53, while LW's P/B ratio is 5.24, indicating that BRFS is more undervalued based on market value versus book value [6] - Based on these metrics, BRFS holds a Value grade of A, whereas LW has a Value grade of C [6] Earnings Outlook - BRFS is currently experiencing an improving earnings outlook, making it a more attractive option for value investors [7]

Company Performance - BRF's stock closed at $4.60, reflecting a +1.1% change from the previous trading day's closing, outperforming the S&P 500's gain of 0.03% [1] - Over the past month, BRF shares have decreased by 2.57%, underperforming the Consumer Staples sector's gain of 4.12% and the S&P 500's gain of 1.54% [1] Earnings Forecast - The upcoming earnings release is expected to show an EPS of $0.12, representing a 340% increase from the same quarter last year [2] - Revenue is forecasted to be $2.84 billion, indicating a 0.28% increase compared to the same quarter of the previous year [2] Full Year Estimates - For the full year, earnings are projected at $0.43 per share and revenue at $10.85 billion, reflecting increases of +243.33% and +12.13% respectively from the previous year [3] - Recent revisions to analyst forecasts are crucial as they indicate confidence in the company's performance and profit potential [3] Valuation Metrics - BRF has a Forward P/E ratio of 10.58, which is a discount compared to the industry average Forward P/E of 18.34 [5] - The current PEG ratio for BRF is 0.28, significantly lower than the Food - Miscellaneous industry's average PEG ratio of 2.79 [6] Industry Ranking - The Food - Miscellaneous industry is part of the Consumer Staples sector and has a Zacks Industry Rank of 88, placing it in the top 35% of over 250 industries [6] - The Zacks Rank system indicates that BRF currently holds a Zacks Rank of 2 (Buy), with a 21.13% rise in the Zacks Consensus EPS estimate over the past month [5]

Core Viewpoint - BRF has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Company Performance and Outlook - For the fiscal year ending December 2024, BRF is expected to earn $0.43 per share, reflecting a 243.3% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for BRF has risen by 48.3%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade of BRF to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Investors interested in Food - Miscellaneous stocks are likely familiar with BRF (BRFS) and Lamb Weston (LW) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to ...

Core Viewpoint - BRF S.A. has shown significant margin recovery in 2Q24, driven by favorable poultry and pork markets, declining grain prices, and the depreciation of the Brazilian real (BRL) [1][3][4] Financial Performance - BRF's EBITDA margins improved by nearly ten percentage points year-over-year, contributing to a substantial increase in operating income [3] - The company reported revenues of approximately $11 billion year-to-date, with EBITDA margins at 17.5%, leading to an annualized EBITDA close to $2 billion [7] - The net income after taxes is estimated at $940 million, resulting in a price-to-earnings (P/E) ratio of 8x, which is considered low but may not sufficiently cover the expected return [7] Market Dynamics - Grain prices, a key factor in BRF's profitability, have fallen to levels comparable to the 2015-2020 bear market, with expectations of remaining low due to anticipated higher harvests [4] - Global poultry and swine prices have been rising due to supply shortages following a poor 2022/23 cycle, although adjustments in production capacity take time [4] - Strong domestic demand in Brazil, where BRF generates about 40% of its EBITDA, is supported by low unemployment and rising salaries [4] Operational Developments - BRF has gained 57 new exporting licenses year-to-date and expects an additional 40 by the end of FY24, enhancing its market flexibility [5] - The company has achieved approximately BRL 800 million in operating savings from its BRF 2.0 program, although the sources of these savings remain unclear [6] Future Outlook - The current positive cycle may not sustain, as margins are likely to decrease due to rising grain prices and potential oversupply in the poultry and pork markets [2][8] - Long-term average EBITDA margins for BRF are projected at 10.2%, significantly lower than the current margins, indicating potential overvaluation at a market cap of $7.7 billion [7][8]

Financial Data and Key Metrics Changes - The company reported a significant revenue growth of 22.3% compared to the same period in 2023, achieving an EBITDA of R$2.6 billion with a margin of 17.6% [3][5] - Net income reached almost R$15 billion, a 22% increase year-over-year, with free cash flow performance at R$1.7 billion [5][12] - The gross profit was approximately R$3.9 billion, with a profitability margin of 26.4% [5] Business Line Data and Key Metrics Changes - In Brazil, the EBITDA margin reached 15.7%, with significant growth in processed food categories, particularly in sales volumes [6][14] - The international market saw an improvement in EBITDA margin by 4 percentage points compared to the previous period, driven by recovery in export prices and market diversification [7][14] - The Ingredients and Pet segment reported an EBITDA margin of 11.9%, with a focus on expanding markets and increasing sales of value-added items [8] Market Data and Key Metrics Changes - The domestic market showed strong volume growth, particularly in processed products, despite a recovering consumption environment [6][14] - The international market demonstrated a strong performance, especially in Turkey and GCC, with gains in chicken and pork exports [7][14] - The halal market saw a market share gain of 1.2 percentage points compared to the previous quarter [7] Company Strategy and Development Direction - The company continues to focus on its efficiency journey guided by BRF+ 2.0, which has shown improvements in operating indicators and competitiveness [4][14] - The management model emphasizes capturing opportunities and maintaining a high-performance culture [4][15] - The company is expanding its presence in new markets, having won 57 new licenses in the first half of the year, including access to the UK and Southeast Asia [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the market, with balanced supply and demand across all locations, including Brazil [19][22] - The future perspectives are positive, with expectations of growth in soybean and corn production, which will support cost competitiveness [22] - The company is prepared to manage challenges, including the recent Newcastle disease, with a strong operational efficiency program in place [34][37] Other Important Information - The company achieved 90% traceability of indirect suppliers in critical biomes and aims for 50% of electricity from clean sources by 2030 [10] - The net debt was reported at R$8.9 billion, with the lowest leverage in nine years, contributing to reduced interest charges [12][11] Q&A Session All Questions and Answers Question: Insights on the international market and future expectations - Management highlighted a stable market with balanced supply and demand, and the importance of new permits in maintaining this balance [19][20] - The company is working on 40 new permits by the end of the year, adding to the 57 new destinations enabled for 2024 [26] Question: Factors affecting supply and market dynamics - Management noted that the current market conditions are stable, with no significant pressure on supply affecting prices [20][28] Question: Cost expectations and inventory levels - The company anticipates marginal room for a fall in feed prices, with ongoing efficiency programs supporting cost reductions [46][47] Question: Impact of Newcastle disease on operations - Management confirmed that markets have reopened, and the company has implemented plans to manage inventory and redirect products effectively [34][36] Question: Volume growth in Brazil and sustainability - The company attributed strong volume growth to improved commercial execution and market demand, with expectations for continued growth in the second half of the year [40][41] Question: Capital allocation and investment strategies - Management indicated a focus on organic growth and maintaining profitability, with potential for increased dividends and share repurchase programs [48][49] Question: Pricing dynamics in the international market - The company emphasized the importance of a robust pricing system and the ability to capitalize on market opportunities through strategic decision-making [50][51]

Seu dia pede SUÍNO FÁCIL COSTELA SUÍNA Sadia #NUGGETS QUEIJO Sadia adia SOBRECOXAS CALABRESA TEMPERADAS PRESUNTO COZIDO ASSADA EM RONO DE PERRA 1A1 #PIZZA IA RECEITA DESFIADO uld brf Sadia Sadia f [Banvit] brf m pet 2024 RESULTS 2Q24 Legal notice This presentation may include some statements that express the expectations, beliefs and assumptions of BRF S.A. ("BRF" or "Company") management about future events or results. Such statements do not correspond to historical facts, and are based on currently availa ...

Financial Position and Assets - Cash and cash equivalents increased to $11.46 billion as of June 30, 2024, compared to $9.26 billion as of December 31, 2023[3] - Total current assets rose to $29.10 billion as of June 30, 2024, up from $25.95 billion as of December 31, 2023[3] - Total non-current assets grew to $44.27 billion as of June 30, 2024, up from $39.98 billion as of December 31, 2023[3] - Total shareholders' equity (consolidated) increased to $16,805,049 as of June 30, 2024, up from $15,643,656 at December 31, 2023[6] - Consolidated investments increased to R$17,205,464 as of June 30, 2024, up from R$13,683,725 at the end of 2023, primarily driven by investments in subsidiaries[186] - The consolidated property, plant, and equipment increased to 26,455,758 from 25,668,222, with additions of 1,022,465[191] - Intangible assets increased to $3,791,204 as of 06.30.24, with additions of $106,749 and disposals of $3,338[194] - Consolidated intangible assets reached $7,994,271, driven by additions of $107,702 and exchange rate variations of $301,152[195] Liabilities and Debt - Total current liabilities increased to $28.51 billion as of June 30, 2024, compared to $25.55 billion as of December 31, 2023[3] - Loans and borrowings under current liabilities decreased to $1.95 billion as of June 30, 2024, from $2.24 billion as of December 31, 2023[3] - Trade accounts payable under current liabilities increased to $14.65 billion as of June 30, 2024, from $14.01 billion as of December 31, 2023[3] - Total non-current liabilities increased to $21.59 billion as of June 30, 2024, compared to $19.28 billion as of December 31, 2023[3] - Loans and borrowings totaled $19,606,704, with current liabilities at $1,951,420 and non-current liabilities at $17,655,284[196] - Debentures increased to $8,505,965, with an average rate of 12.15% and a weighted average maturity of 6.84 years[196] - Foreign currency bonds grew to $7,030,656, with an average rate of 5.34% and exchange rate variations of $917,065[196] - Gross debt increased by 13.7% to R$22,079 million in 2Q24 compared to R$19,414 million in the previous period[109] - Net debt decreased by 0.9% to R$8,932 million in 2Q24 from R$9,016 million in 1Q24[109] Equity and Earnings - Total equity rose to $15.75 billion as of June 30, 2024, from $14.92 billion as of December 31, 2023[3] - Accumulated earnings increased to $1.49 billion as of June 30, 2024, compared to $0 as of December 31, 2023[3] - Non-controlling interests in equity grew to $1.05 billion as of June 30, 2024, from $720.23 million as of December 31, 2023[3] - Net income attributable to controlling shareholders in Q2 2024 was 1,492,745 thousand Brazilian Reais, a significant improvement from (2,392,927) thousand Brazilian Reais in Q2 2023[4] - Comprehensive income for the consolidated entity in Q2 2024 was 1,491,887 thousand Brazilian Reais, up from (2,224,381) thousand Brazilian Reais in Q2 2023[5] - Comprehensive income for the period was $1,687,636, driven by income for the period of $1,492,745[6] - Net income in 2Q24 was R$1,094 million, a significant improvement from a net loss of R$1,337 million in 2Q23, representing a year-over-year increase of 181.8%[90] - Income before taxes for the Consolidated was R$1,313,211 for the April-June 2024 period, a significant improvement from the loss of R$1,460,615 in the same period of 2023[183] Revenue and Profitability - Net sales for the consolidated entity in Q2 2024 reached 28,307,101 thousand Brazilian Reais, a significant increase from 25,382,940 thousand Brazilian Reais in Q2 2023[4] - Gross profit for the consolidated entity in Q2 2024 was 7,154,254 thousand Brazilian Reais, compared to 3,158,949 thousand Brazilian Reais in Q2 2023[4] - Operating income for the consolidated entity in Q2 2024 was 2,955,584 thousand Brazilian Reais, up from (540,644) thousand Brazilian Reais in Q2 2023[4] - Net revenue in 2Q24 reached R$14,930 million, a 22.3% increase compared to 2Q23[27] - Adjusted EBITDA in 2Q24 was R$2,621 million, with a margin of 17.6%, up 160.4% year-over-year[27] - Gross profit surged by 164.5% year-over-year to R$3,930 million in 2Q24, with a gross margin of 26.3%[120] - Adjusted EBITDA grew by 160.4% year-over-year to R$2,621 million in 2Q24[120] - The company's net margin improved to 7.3% in 2Q24, up from -11.09% in 2Q23, reflecting a significant turnaround in profitability[90] Cash Flow and Liquidity - Consolidated net cash provided by operating activities increased to 4,187,919 thousand Brazilian Reais in 2024 Jan-Jun, up from 1,337,686 thousand Brazilian Reais in the same period of 2023[7] - Consolidated net increase in cash and cash equivalents was 2,193,194 thousand Brazilian Reais in 2024 Jan-Jun, compared to a decrease of 636,660 thousand Brazilian Reais in 2023 Jan-Jun[7] - Free cash flow in 2Q24 was R$1,728 million, more than double the R$844 million recorded in 1Q24[27] - Net cash provided by operating activities improved significantly to R$2,266 million in Q2 2024 compared to R$743 million in Q2 2023[128] - Net cash used in investing activities decreased to R$1,376 million in Q2 2024 from R$573 million in Q2 2023, reflecting lower capital expenditures[128] - Net cash provided by financing activities turned positive to R$451 million in Q2 2024 from a negative R$1,041 million in Q2 2023, mainly due to higher debt issuance[128] - Free cash flow increased to R$2,750 million in Q2 2024 from R$1,728 million in Q2 2023, driven by stronger operating cash flow[129] Operational Performance - Consolidated revenues for 2024 Jan-Jun reached 30,932,275 thousand Brazilian Reais, compared to 28,107,642 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated gross added value rose to 11,293,474 thousand Brazilian Reais in 2024 Jan-Jun, up from 6,821,879 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated net added value increased to 9,579,887 thousand Brazilian Reais in 2024 Jan-Jun, compared to 5,257,661 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated payroll expenses grew to 3,763,955 thousand Brazilian Reais in 2024 Jan-Jun, up from 3,168,346 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated taxes, fees, and contributions increased to 3,058,492 thousand Brazilian Reais in 2024 Jan-Jun, compared to 2,304,380 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated income (loss) from continuing operations improved to 1,687,636 thousand Brazilian Reais in 2024 Jan-Jun, compared to a loss of 2,360,901 thousand Brazilian Reais in 2023 Jan-Jun[7] - Consolidated depreciation and amortization expenses rose to 964,214 thousand Brazilian Reais in 2024 Jan-Jun, up from 870,917 thousand Brazilian Reais in 2023 Jan-Jun[7] - Consolidated financial results, net, decreased to 927,705 thousand Brazilian Reais in 2024 Jan-Jun, down from 1,959,403 thousand Brazilian Reais in 2023 Jan-Jun[7] International Operations - International segment EBITDA reached R$1,500 million in 2Q24, with a margin of 21%, driven by price recovery and new market access[23] - The company gained 32 new export authorizations in 2Q24, contributing to increased export volumes and revenue[23] - International segment net operating revenues grew 16.8% year-over-year to R$7.073 billion, with a gross margin increase of 16.3 percentage points to 27.3%[44] - Adjusted EBITDA for the international segment reached R$1.486 billion, a 516.2% year-over-year increase, with a margin of 21.0%[44] - BRF achieved a 38.4% market share in GCC countries, up 1.20 percentage points quarter-over-quarter, and 27.2% market share in Turkey's processed food market[45] - In Chile, Sadia's market share grew across all categories, supported by a campaign reaching over 3 million people on TV and 60 million digital impressions[50] - BRF launched 31 new SKUs, including a pork portfolio for the USA, and expanded participation in trade fairs like Sial Shanghai and FHA Singapore[49] Efficiency and Cost Management - BRF+ 2.0 program captured R$374 million in efficiencies in 2Q24, bringing the total to R$812 million for the year[24] - COGS/kg decreased by 11.8% year-over-year and 3.1% quarter-over-quarter, driven by lower grain and oil costs and changes in product mix[34] - The company's efficiency program, BRF+, captured R$374 million in savings in 2Q24 and R$812 million in the first half of the year[75] - The company conducted one-off arbitrage operations to reduce grain origination costs, improving results in other business segments[54] - Cost of Goods Sold (COGS) increased by 2.6% yly and 8.3% q/q, with unit costs decreasing by 2.7% in the corporate view and 7.5% in the managerial view[73] - Operating expenses increased by 16.4% yly and 10.5% q/q, with selling expenses rising by 12.6% yly and 8.9% q/q[80] Market and Sales Performance - Unemployment rate in Brazil reached 6.9% in Q2 2024, with a 5.8% year-over-year increase in average disposable income, boosting domestic sales of processed products[35] - Sadia's 80th anniversary campaign achieved over 6 million website hits, 120 million media reach, and 1.2 million product registrations, with innovative QR code usage on packaging[39] - Pet food sales volume increased year-over-year and quarter-over-quarter, driven by Super Premium and Super Premium Natural segments[53] - Net Operational Revenues increased by 22.3% year-over-year (yly) and 11.6% quarter-over-quarter (q/q), driven by a 5.4% yly and 7.8% q/q increase in volumes sold, and a 16.0% yly and 3.5% q/q increase in average price[68] - The company's net revenue, excluding hyperinflation effects in Turkey and hedge accounting, reached R$14,672 million in 2Q24, an 11.5% increase yly compared to R$13,161 million in 2Q23[68] Financial Instruments and Hedging - Cumulative Notional Exposure for derivatives instruments settled in 2Q24 reached US$556 million, up from US$306 million in 1Q24[65] - Foreign currency translation gain for the consolidated entity in Q2 2024 was 252,463 thousand Brazilian Reais, compared to (326,446) thousand Brazilian Reais in Q2 2023[5] - Cash flow hedges reclassified to profit or loss for the consolidated entity in Q2 2024 was (6,618) thousand Brazilian Reais, compared to 391,081 thousand Brazilian Reais in Q2 2023[5] - The impact of exchange rate variations on monetary assets and liabilities, including derivatives, totaled +R$258 million in 2Q24[89] - The company's working capital in local currency as of June 30, 2024, was R$492,024, with an average rate of 10.42% (down from 12.28% on December 31, 2023)[197] - The export credit facility had an outstanding balance of R$1,583,437 as of June 30, 2024, with an average rate of 11.99% (down from 13.26% on December 31, 2023)[197] Environmental and Social Responsibility - The company achieved 35% clean energy usage in its operations, progressing towards its 50% target by 2030[116] - BRF maintained 100% traceability of direct grain suppliers and reached 90% traceability for indirect suppliers in the Amazon and Cerrado regions[115] - The company incurred losses of R$113,083 due to extreme weather events in Rio Grande do Sul, impacting operations and leading to additional expenses for repairs and donations[158] Subsidiaries and Investments - BRF holds 100% equity in key subsidiaries such as BRF Energia S.A., BRF Foods UK Ltd., and BRF Pet S.A. in Brazil, maintaining consistent ownership from 2023 to 2024[155] - BRF GmbH's ending balance increased to 15,769,833 from 12,220,014, driven by income of 3,262,362 and capital transactions of 229,755[188] - BRF Energia S.A. received a capital increase of 10,000, contributing to an ending balance of 10,383[188] - BRF Foods UK Ltd. reported a loss of 126, resulting in an ending balance of 1,168[188] - BRF Investimentos saw a capital increase of 5,841, leading to an ending balance of 6,020[188] - Sadia Alimentos S.A. recorded a loss of 8,247, reducing its ending balance to 2,882[188] - Sadia Uruguay S.A. experienced a capital reduction of 58,515, resulting in an ending balance of 50,494[188] Tax and Legal Matters - The company recognized tax assets related to IPI, with a balance of R$1,153,692 as of 06.30.24[178] - The company used PIS, COFINS, IPI, and other recoverable taxes to offset federal taxes payable in the amount of R$728,107 for the six-month period ended on 06.30.24[180] - Deferred income taxes increased to R$2,206,876 for the Parent Company and R$2,190,242 for the Consolidated as of June 30, 2024, up from R$2,054,826 and R$2,052,983 respectively at the end of 2023[181][182] - Tax losses carryforward for the Parent Company and Consolidated stood at R$2,496,088 and R$2,537,169 respectively as of June 30, 2024, showing minimal change from December 31, 2023[181] - The Parent Company recognized deferred income taxes of R$215,367 in other comprehensive income for the period ending June 30, 2024[182] - The effective tax rate for the Consolidated was 16.7% for the April-June 2024 period, compared to 8.4% in the same period of 2023[183] - Judicial deposits for the Parent Company decreased slightly to R$403,345 as of June 30, 2024, from R$405,450 at the beginning of the period[184] - Consolidated judicial deposits increased slightly to R$415,957 as of June 30, 2024, from R$415,718 at the beginning of the period[185] Inventory and Receivables - Finished goods inventory increased to 2,165,594 as of 06.30.24, up from 1,988,163 on 12.31.23[171] - Raw materials inventory decreased to 880,609 as of 06.30.24, down from 1,521,744 on 12.31.23[171] - Trade accounts receivable from third parties in the domestic market decreased from R$1,729,067 on December 31, 2023, to R$1,570,470 on June 30, 2024[168] - Expected credit losses for trade accounts receivable increased from R$(547,078) on December 31, 2023, to R$(637,452) on June 30, 2024[169] - Not overdue trade accounts receivable increased from R$5,532,133 on December 31, 2023, to R$6,020,373 on June 30, 2024[170] - Overdue trade accounts receivable for more than 360 days increased from R$521,020 on December 31, 2023, to R$588,385 on June 30, 2024[170] Currency and Inflation Impact - The Turkish subsidiary experienced a 24.7% price index increase due to hyperinflation, affecting income before financial results and taxes by R$(22,244) and recognizing revenue impacting the financial result by R$98,223[163] - The inflation adjustment in Argentina impacted the Income

BRF S.A. (BRFS) is likely to register bottom-line growth when it reports second-quarter 2024 earnings on Aug 14. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 7 cents per share. The figure indicates improvement from a loss of 10 cents reported in the year-ago quarter. The company's top line is likely to decline year over year. The consensus mark for quarterly revenues is pegged at $2.6 billion, indicating a decline of 2.6% from the prior-year quarter's rep ...