BRF (BRFS3) Q3 2024 earnings summary

Executive summary

• Achieved historic results in 3Q24, with record operational and financial performance, including a 19.1% EBITDA margin, BRL 3 billion EBITDA, and net profit of BRL 1.1 billion, supported by efficiency gains and market expansion.

• Net revenue grew 12.4% year-over-year to BRL 15.5 billion, with strong volume growth in Brazil and processed product market share reaching 40%.

• International segment profitability increased through market diversification, value-added product sales, pork price recovery, and new export authorizations.

• Efficiency programs like BRF+ 2.0 delivered BRL 330 million in the quarter, with annualized operational gains of BRL 1.1 billion.

• Strategic partnerships and acquisitions, including Marfrig and a major Saudi Arabian chicken producer, support international growth.

Financial highlights

• Net revenue reached BRL 15.5 billion, up 12.4% year-over-year; gross profit was BRL 4.3 billion with a 27.7% margin.

• Adjusted EBITDA was BRL 2.97 billion (19.1% margin), a record for the period; free cash flow was BRL 1.8 billion.

• Net income was BRL 1.1 billion, reversing a loss of BRL 262 million in 3Q23.

• Net debt declined to BRL 6.87 billion, the lowest since 2015, with leverage at 0.71x EBITDA (12 months).

• Operating cash flow reached nearly BRL 3.4 billion, the highest in company history.

Outlook and guidance

• Expectation of stable demand and prices for poultry and pork, with continued growth in processed and value-added products.

• Anticipated higher CapEx in 2025, prioritizing growth projects, especially in processed and frozen categories.

• Focus on operational efficiency, market share expansion, and international market diversification.

• Continued investment in innovation, logistics, and product launches to sustain growth.

• Optimism for a strong year-end campaign and continued market share gains in Brazil.