BRF(US:BRFS)2025-08-15 14:02Financial Data and Key Metrics Changes - The company reported net revenue of BRL 15.4 billion, a 3% increase compared to the same period in 2024 [4] - EBITDA for the quarter was BRL 2.5 billion, contributing to a year-to-date total of BRL 5.3 billion, which is 11% higher than the same period last year [4] - Net income for the quarter was BRL 735 million, with a semester total of BRL 1.9 billion [4] - Free cash flow was approximately BRL 850 million, or BRL 1.3 billion when excluding the impact of the Hannon plant acquisition in China [4] - The company achieved a leverage ratio of 0.43 times LTM EBITDA, the lowest in its history [5] Business Line Data and Key Metrics Changes - In Brazil, EBITDA reached BRL 1.3 billion with a margin of 16.4%, driven by volume growth in processed products [6] - The international market showed healthy margins, with an EBITDA margin of 170.3% for the quarter [7] - The ingredients and pet segment reported EBITDA of BRL 52 million, with an 8% increase in the customer base for pet products [11] Market Data and Key Metrics Changes - The company gained a 1.4 percentage market share in processed products in the GCC, driven by the branded products category [9] - In Turkey, processed product volumes grew by 7% year-over-year, maintaining market share leadership [9] - The company expanded its export opportunities with 11 new export authorizations in 2025, contributing to price maximization [10] Company Strategy and Development Direction - The company emphasized its market diversification strategy, increasing its active customer base and strengthening its portfolio of high-quality value-added products [3][15] - The BRF Plus efficiency program continues to generate gains through continuous process improvement [15] - The company aims to expand its export options and strengthen its global presence, leveraging a robust data intelligence system for timely decision-making [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the results reflect operational excellence, strategic vision, and financial discipline, even in adverse scenarios such as poultry export restrictions [2][15] - The company remains optimistic about sustainable growth, focusing on quality, safety, and integrity [19] - Management highlighted the importance of maintaining credibility and effective communication during health crises, such as avian flu [62] Other Important Information - The company reported a reduction in net debt to BRL 4.7 billion, the lowest since 2011, contributing to lower interest expenses in 2025 [14] - The company has implemented significant improvements in plant utilization and volume sold, achieving a pace of 50% higher than the historical average [12] Q&A Session Summary Question: Impact of avian flu on exports and margins - Management explained that the company has opened 198 new permits, allowing for agile reallocation of products and mitigating impacts on volume and price [24][26] - The company is optimistic about the reopening of markets, particularly in China and Europe, which are expected to happen soon [26] Question: Cost expectations with decreasing commodity prices - Management anticipates a potential 2% reduction in animal feed costs in the second half of the year due to lower grain prices [31] Question: Price resilience and future pricing strategies - Management noted that prices in Brazil increased by 11% year-over-year for processed products, with expectations for further price adjustments depending on market conditions [38] Question: Gross margin and capacity utilization - Management confirmed that there is no significant regression expected in gross margins, with ongoing improvements in operational efficiency [42][44] Question: Industry fundamentals and future profitability - Management expressed confidence in the company's resilience and competitiveness, stating that demand is expected to continue exceeding supply [51][57]