- **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.


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