BRF (BRFS3) Q2 2024 earnings summary

Executive summary

• Achieved record second quarter results in 2024, with net revenue of R$14.93 billion, up 22.3% year-over-year, and net income of R$1.094 billion, reversing a loss in 2Q23.

• Adjusted EBITDA reached R$2.621 billion (margin 17.6%), a 160.4% increase year-over-year, marking the sixth consecutive quarter of margin improvement.

• Free cash flow was R$1.728 billion, more than double the previous quarter, and net leverage dropped to 1.14x, the lowest in nine years.

• Operational improvements, efficiency programs, and brand investments drove strong volume growth and profitability across all segments, both domestic and international.

• ESG initiatives advanced, with 90% traceability of indirect grain suppliers, 35% clean energy usage, and significant support for communities affected by floods in Rio Grande do Sul.

Financial highlights

• Net revenue: R$14.93 billion in 2Q24, up 22.3% year-over-year.

• Adjusted EBITDA: R$2.621 billion, margin 17.6%, up 9.3 p.p. year-over-year.

• Net income: R$1.094 billion, reversing a R$1.337 billion loss in 2Q23.

• Gross profit: R$3.93 billion, gross margin 26.3% (up 14.2 p.p. year-over-year).

• Free cash flow: R$1.728 billion, the highest in company history.

Outlook and guidance

• Continued focus on operational efficiency, innovation, and market expansion, with ongoing investments in ESG and new product launches.

• Targeting 50% clean electricity by 2030 and maintaining high traceability in supply chains.

• Expectation of sustained margin improvement and cash generation, supported by balanced supply and demand globally.