BRF's 2025 Q2 Earnings Call: Navigating Avian Flu's Dual Impact on Market Recovery and Pricing Strategy

Strong Financial Performance:
- BRF S.A. reported net revenue of BRL 15.4 billion for the second quarter of 2025, showing a 3% increase compared to the same period in 2024.
- The company's EBITDA reached BRL 2.5 billion for the quarter, contributing to a BRL 5.3 billion year-to-date total, which was an 11% increase over the same period last year.
- The record EBITDA and revenue growth were driven by consistent progress in market diversification, strategic vision, and operational excellence.

International Market Resilience:
- In the international market, BRF maintained healthy margins with an EBITDA margin of 17.3% for the quarter.
- The company mitigated the effects of avian influenza, which imposed restrictions on chicken exports, by geographic diversification and strategic reallocation of products.
- The results were bolstered by new export authorizations, increased value-added products, and a focus on high-quality, high-margin products.

Domestic Market Growth:
- The company reported EBITDA of BRL 1.3 billion in Brazil, with a margin of 16.4%.
- BRF achieved the highest second-quarter sales volume in Brazil, with a customer base exceeding 330,000 points of sale.
- This growth was driven by increased volume in processed products, improved product assortment, and effective commercial execution.

Cost Management and Efficiency:
- BRF's efficiency program, BRF+, generated gains of BRL 208 million in the quarter by optimizing management indicators.
- The company is leveraging efficiency gains to capture synergies, reduce costs, and sustain growth, despite global economic challenges.
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