- **Record First Half Performance**: EBITDA of BRL 5.3 billion and net income of BRL 1.9 billion, fueled by Brazil’s processed products growth and international market diversification.
- **Avian Flu Resilience**: 198 new export authorizations mitigated China/Europe losses, with China market reopening expected soon.
- **Cost Savings**: Animal feed costs set to decline 2% YoY in H2, supporting gross margin expansion.
- **Halal Market Expansion**: Sadia Fresh line in Saudi Arabia and GCC market share gains highlight strategic growth initiatives.
- **Financial Strength**: Lowest leverage ratio (0.43x) and free cash flow of BRL 1.3 billion (ex-acquisition) underscore financial discipline.

**【CEO Opening Remarks】**
- BRF reported the best first half of the year with EBITDA of BRL 5.3 billion and net income of BRL 1.9 billion, driven by operational excellence and strategic market diversification.
- Despite avian flu-related export restrictions, the company maintained progress in its market diversification strategy, increasing the active customer base to over 330,000 points of sale in Brazil.
- Highlighted product innovations include new pork cuts, ready-to-eat snacks, and partnerships with Marfrig brands to expand the budget portfolio.

**【CFO Financial Commentary】**
- Q2 2025 net revenue reached BRL 15.4 billion (+3% YoY), with EBITDA of BRL 2.5 billion and free cash flow of BRL 850 million (BRL 1.3 billion excluding Henan plant acquisition).
- BrazilRL 1.3 billion ( operations reported EBITDA of B16.4% margin), driven by volume growth in processed products.
- International markets maintained healthy margins (17.3%) despite avian flu challenges, with 198 new export authorizations offsetting lost China volumes.
- BRF+ efficiency program delivered BRL 208 million in cost savings, contributing to the lowest leverage ratio in company history (0.43x LTM EBITDA).
- ESG initiatives included carbon-free certification for Sadia’s chicken line in Saudi Arabia and expansion of halal market presence.

**【CEO Closing Remarks】**
- Emphasized BRF’s resilience and agility in managing avian flu, with 198 new export authorizations enabling rapid market reallocation.
- Highlighted the success of the Sadia Fresh halal line in Saudi Arabia and expanded market share in GCC countries.
- Reiterated commitment to internal talent development, with 70% of leadership roles filled internally over the past year.

**【Q&A Highlights】**
- **Avian Flu Mitigation**: BRF leveraged 198 new export authorizations to redirect products to alternative markets, maintaining price resilience. China market reopening expected in coming weeks.
- **Cost Management**: Animal feed costs expected to decline 2% YoY in H2, driven by lower corn prices. Soybean meal orders extended into 2026 to lock in savings.
- **Brazil Market Resilience**: Processed products prices rose 11% YoY, supported by strong domestic demand and brand pricing power.
- **Capacity Utilization**: Idle capacity in key categories is near zero, with BRF+ program driving 50% faster volume growth than historical averages.
- **Inventory Strategy**: Elevated finished goods inventory (BRL 1.5 billion) will be managed through reopening markets, with no plans to destroy value.


BRF S.A. (BRFS) Q2 2025 Earnings Call Transcript

- **Record Q1 Performance**: Profit doubles to BRL1.2B, EBITDA surges 30% to BRL2.8B, lowest leverage in history (0.54x).
- **Brazil Dominance**: 16% revenue growth, 19% EBITDA margin in domestic market, 25% processed chicken share in Turkey.
- **Global Expansion**: 12 new export permits, China plant operational, Saudi Arabia plant under construction for high-margin products.
- **Efficiency & Growth**: BRF+ saves BRL305M, 3-5% volume growth via new plants, 89% employee satisfaction drives execution.


**【CEO Opening Remarks】**
- Q1 2025 profit reached BRL1.2 billion (2x YoY), with net revenue of BRL15.5 billion (+16% YoY). BRF+ program delivered BRL305 million in efficiency gains.
- EBITDA hit a record BRL2.8 billion (+30% YoY), with leverage at 0.54x, the lowest in company history.
- Brazil market EBITDA margin expanded to 19%, driven by processed products and new exports.

**【CFO Financial Highlights】**
- Free cash flow: BRL1.3 billion (excluding Addoha acquisition) vs. BRL1.8 billion (including). 12-month leverage: 0.54x.
- Gross profit: BRL4.1 billion (26.3% margin). EBITDA margin stable at 18%.
- 12 new export permits secured in Q1, total 187 since 2022. China plant acquisition and Saudi Arabia expansion underway.

**【CEO International Expansion】**
- Middle East: Sadia leads GCC with 25% processed chicken share. Saudi Arabia plant construction begins for high-value products.
- Turkey: Banvit maintains 25% fresh chicken market share. Chile enters beef burgers with Sadia.
- China: Henan plant operational with 80,000+ tons capacity, supplying local fast-food chains.

**【Q&A Key Takeaways】**
- **Avian Flu Mitigation**: 187 export permits diversify risk. Strategic inventories and contingency plans minimize impact.
- **Growth Strategy**: 3-5% volume growth via new plants (e.g., Saudi Arabia, China). 2025 CapEx focused on bottleneck relief.
- **Employee Engagement**: 89% satisfaction score, up 4pts YoY, supporting operational excellence.
- **Tariffs & Pricing**: Stable export prices in China, no material impact from U.S. tariffs.


BRF S.A. (BRFS) Q1 2025 Earnings Call Transcript

- **Record 2024 Performance**: EBITDA up 175% to BRL10.5B, free cash flow of BRL6.5B
- **BRF+ Efficiency Success**: BRL4B savings, 175 new export permits
- **2025 Outlook**: Strong demand for processed products, 20%+ international EBITDA margin
- **Cost Control**: Non-recurring Q4 costs removed, balanced protein prices
- **Expansion Priorities**: UK market re-entry, Middle East growth, frozen/dairy capacity expansion

**【CEO Summary Section】**
- BRF reported record 2024 performance with EBITDA of BRL10.5 billion, a 14% increase in net revenue to BRL61.4 billion, and free cash flow of BRL6.5 billion.
- Growth driven by efficiency gains, volume expansion in value-added products, and market share gains in Brazil and international markets.
- BRF+ efficiency program captured BRL4 billion in operational savings, contributing to net profit of BRL3.7 billion.

**【CFO Financial Commentary】**
- 2024 highlights include: 
  - EBITDA margin of 17.1% (vs. 8.2% in 2023)
  - Leverage reduced to 0.75x EBITDA (from 2.0x in 2023)
  - Free cash flow conversion of 60% of EBITDA
- International segment achieved 20%+ EBITDA margin, led by Turkey and Gulf markets.
- 2025 outlook: Strong demand for processed products, balanced protein prices, and continued BRF+ efficiency gains.

**【Q&A Key Themes】**
1. **2025 Cost Management**: 
   - Non-recurring Q4 2024 costs (variable compensation, PLR) will not repeat
   - Focus on price realization in Brazil, disciplined cost control
   - Input costs stabilized due to strong crop outlook

2. **BRF+ Program Evolution**: 
   - Transitioning from cost-cutting to cultural transformation
   - 2025 targets: 100+ new export permits, 50%+ growth in value-added products

3. **Market Expansion**: 
   - 175 new export permits since 2022
   - UK market re-entry efforts progressing
   - Middle East growth driven by Ramadan demand

4. **Financial Discipline**: 
   - 2025 capex focused on high-return projects (frozen, dairy products)
   - Net debt reduced to BRL8.3 billion, targeting further deleverage

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