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BRF(BRFS) - 2024 Q3 - Quarterly Report
BRFSBRF(BRFS)2024-11-14 00:52
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Financial Performance - The company reported a loss per share of R0.61716forthebasiccalculation,comparedtoalossofR 0.61716 for the basic calculation, compared to a loss of R 2.21937 in the previous period[11]. - Net sales for Q3 2024 reached 13,163.9 million BRL, a 7.5% increase compared to 12,244.9 million BRL in Q3 2023[13]. - Gross profit for Q3 2024 was 3,592.9 million BRL, up from 2,601.8 million BRL in Q3 2023, reflecting a 38.2% increase[13]. - Operating income for Q3 2024 was 2,188.4 million BRL, compared to 769.4 million BRL in Q3 2023, marking a significant improvement[13]. - Net income for Q3 2024 was 1,024.6 million BRL, a recovery from a net loss of 387.0 million BRL in Q3 2023[13]. - Comprehensive income for Q3 2024 was 1,268.3 million BRL, compared to a loss of 367.2 million BRL in Q3 2023[16]. - The company reported a financial income of 218.5 million BRL in Q3 2024, down from 225.4 million BRL in Q3 2023[13]. - Selling expenses increased to 1,742.5 million BRL in Q3 2024 from 1,631.1 million BRL in Q3 2023, reflecting a 6.8% rise[13]. - The company experienced a foreign exchange loss of 25.1 million BRL in Q3 2024, compared to a gain of 315.5 million BRL in Q3 2023[13]. - The company reported a net income of R1,137millionin3Q24,asignificantincreaseof533.21,137 million in 3Q24, a significant increase of 533.2% year-on-year, driven by a 12.4% revenue growth and reduced interest expenses[167]. Assets and Liabilities - Total assets as of September 30, 2024, amounted to R 59,447,936 thousand, a decrease from R59,752,626thousandasofDecember31,2023[9].−CurrentassetsdecreasedtoR 59,752,626 thousand as of December 31, 2023[9]. - Current assets decreased to R 18,487,940 thousand from R19,776,434thousand,whiletotalcurrentliabilitiesdecreasedtoR 19,776,434 thousand, while total current liabilities decreased to R 22,880,495 thousand from R25,546,764thousand[9].−TotalliabilitiesdecreasedtoR 25,546,764 thousand[9]. - Total liabilities decreased to R 59,447,936 thousand from R60,489,987thousand,indicatingareductionofapproximately1.7 60,489,987 thousand, indicating a reduction of approximately 1.7%[9]. - The company’s equity increased to R 16,530,050 thousand from R14,923,428thousand,showingagrowthofabout10.8 14,923,428 thousand, showing a growth of about 10.8%[9]. - The company’s cash and cash equivalents were R 4,447,284 thousand, a decrease from R4,701,549thousand[9].−MarketablesecuritiesdecreasedtoR 4,701,549 thousand[9]. - Marketable securities decreased to R 34,120 thousand from R412,107thousand,asignificantdeclineofapproximately91.7 412,107 thousand, a significant decline of approximately 91.7%[9]. - As of September 30, 2024, total shareholders' equity (consolidated) reached BRL 17,652,865, reflecting a robust financial standing[19]. Revenue and Growth - Consolidated revenues rose to R48,024,931 in 2024 compared to R43,297,294in2023,markinganincreaseof11.543,297,294 in 2023, marking an increase of 11.5%[23]. - Revenues for the parent company increased to R39,822,343 in 2024 from R39,353,845in2023,representingagrowthof1.239,353,845 in 2023, representing a growth of 1.2%[23]. - The gross added value for the parent company increased to R14,171,793 in 2024 from R11,676,564in2023,ariseof21.411,676,564 in 2023, a rise of 21.4%[23]. - The net added value for the parent company was R12,022,805 in 2024, compared to R9,627,652in2023,reflectingagrowthof24.59,627,652 in 2023, reflecting a growth of 24.5%[23]. Cash Flow and Investments - Net cash provided by operating activities for the parent company reached R6,602,171 in 2024, up from R601,758in2023[20].−TheconsolidatednetcashprovidedbyoperatingactivitieswasR601,758 in 2023[20]. - The consolidated net cash provided by operating activities was R8,004,387 in 2024, significantly higher than R2,275,778in2023[20].−ThecompanyreportedanetcashusedininvestingactivitiesofR2,275,778 in 2023[20]. - The company reported a net cash used in investing activities of R2,333,557 in 2024, compared to R1,554,505in2023[20].−ProceedsfromdebtissuanceamountedtoR1,554,505 in 2023[20]. - Proceeds from debt issuance amounted to R2,005,582 in 2024, an increase from R1,643,025in2023[20].−Freecashflowfor3Q24wasR1,643,025 in 2023[20]. - Free cash flow for 3Q24 was R1,839 million, an increase of R1,859millioncomparedto3Q23,indicatingstrongcashgenerationcapabilities[178].−Thecompany′soperatingcashflowwasR1,859 million compared to 3Q23, indicating strong cash generation capabilities[178]. - The company's operating cash flow was R3,362 million in 3Q24, up R2,439millionyear−on−year,withacashconversioncyclereducedto1.0day,down6.6daysfromthepreviousyear[180].MarketPositionandStrategy−InBrazil,thecompanygaineda402,439 million year-on-year, with a cash conversion cycle reduced to 1.0 day, down 6.6 days from the previous year[180]. Market Position and Strategy - In Brazil, the company gained a 40% market share in processed products, with an EBITDA of R1.2 billion and a margin of 16.6%[46]. - The International segment recorded a record EBITDA of R1.6billion,withamarginof22.21.6 billion, with a margin of 22.2%, driven by increased sales of processed products[48]. - BRF has gained 70 new export authorizations in 2024, enhancing its market diversification strategy[48]. - The partnership with Marfrig is a strategic driver for growth, focusing on operational and commercial synergies[39]. - The company continues to focus on sustainability, achieving animal welfare certification in Turkey and receiving the Gold Seal in the Brazilian GHG Protocol Program for transparency in emissions[50]. Operational Efficiency - The company captured R330 million in efficiency gains from its BRF+ program in the quarter, totaling R1.137billionyear−to−date[139].−ThecompanyinvestedR1.137 billion year-to-date[139]. - The company invested R223 million in growth initiatives, focusing on production capacity for both domestic and international markets[186]. - Total CAPEX for 3Q24 was R785million,a4.3785 million, a 4.3% increase year-over-year, with significant allocations for biological assets and leasing[185]. - CAPEX for efficiency projects increased by 35.9% year-over-year, highlighting ongoing improvements in agricultural efficiency and cost reductions[187]. Financial Health and Credit Rating - Moody's upgraded the company's credit rating from "Ba3" to "Ba2" with a stable outlook, indicating improved financial health[196]. - The average term of debt increased to 8.5 years in 3Q24, reflecting a strategic focus on long-term financial stability[195]. - The company experienced a reduction in interest expenses by R68 million in 3Q24 compared to 3Q23, attributed to lower average gross indebtedness and a decrease in the basic interest rate[162].