Financial Data and Key Metrics Changes - The company reported a net revenue of BRL15.5 billion, a 12% increase compared to the same period in 2023 [8][21] - EBITDA reached BRL3 billion, with a margin of 19.1%, marking the best quarterly result in the company's history [5][8] - Free cash flow performance was BRL1.8 billion, with the financial cycle converging to one day, the lowest level on record [9][20] - Net profit was BRL1 billion, with a 34% reduction in net debt compared to the same quarter of 2023 [21][20] Business Line Data and Key Metrics Changes - In Brazil, the processed categories achieved a 16.6% EBITDA margin, with significant market share gains [10][11] - The international segment saw an EBITDA margin of 22.2%, driven by good export price levels and recovery in pork cutlet margins [12][14] - The ingredients and pet segments reported an EBITDA margin of 13.3%, with increased participation in value-added items [14] Market Data and Key Metrics Changes - In Brazil, the company achieved a 40% market share in Bastos products, reflecting improvements in commercial execution [6] - The international market showed positive performance, particularly in Turkiye and the GCC, with a focus on market diversification [7][12] - The processed products in Turkiye accounted for 25% of turnover, indicating strong growth in that region [13] Company Strategy and Development Direction - The company continues to implement its BRF+ 2.0 strategy, which has been integrated into its culture and is yielding positive operational results [7][22] - There is a focus on expanding the value-added product portfolio and enhancing market presence, particularly in the Middle East [24] - The company is prioritizing growth investments, with a project pipeline of BRL1 billion for evaluation [43][63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stable demand in the domestic market, with expectations for continued price improvements [29][30] - The company anticipates a strong performance in the upcoming holiday season, with significant sales from Christmas kits [56] - Management highlighted the importance of operational efficiency and continuous improvement across all geographies [39][71] Other Important Information - The company celebrated its 90th anniversary of Perdigão, launching new campaigns to strengthen brand preference [11] - Sustainability efforts were highlighted, including certifications and educational programs benefiting local communities [17] - The company reported a diversified and long-term debt profile, maintaining a comfortable liquidity position [18] Q&A Session All Questions and Answers Question: Domestic market demand and pricing outlook - Management noted stable demand in the domestic market, with potential for price improvements due to competitive chicken pricing [29][30] Question: International market dynamics and processed goods - Management highlighted the growth of processed goods in Turkiye and the Gulf region, with expectations for continued market share gains [41][42] Question: Capital allocation priorities - The company emphasized prioritizing growth investments while also considering shareholder returns through a buyback program [62][63] Question: Grain prices and competition - Management discussed the stable grain scenario and the company's strategies to mitigate competition for corn purchases [66][70] Question: Insights on pork prices and international negotiations - Management provided insights on the international pork market, indicating no significant threats to pricing from external competition [96][97]
BRF(BRFS) - 2024 Q3 - Earnings Call Transcript