BRF (BRFS3) Q4 2024 earnings summary

Executive summary

• Achieved record financial and operational results in 2024, with net revenue of R$61.4 billion (up 14.5% YoY), net income of R$3.7 billion, and adjusted EBITDA of R$10.5 billion (17.1% margin), reversing a loss in 2023.

• Free cash flow reached R$6.5 billion, enabling significant debt reduction and resumption of shareholder remuneration, including R$1.1 billion paid in interest on capital.

• Strategic transformation and efficiency programs (BRF+) delivered over R$4 billion in operational savings since 2022, supporting profitability and shareholder returns.

• Major international moves included acquisitions in Saudi Arabia and China, and a 50% stake in Gelprime for gelatin and collagen production.

• ESG progress included SBTi-approved climate targets, 100% grain supplier monitoring, and full animal welfare certification.

Financial highlights

• Net revenue: R$61.4 billion (+14.5% YoY); net income: R$3.7 billion (vs. -R$1.9 billion in 2023); adjusted EBITDA: R$10.5 billion (+122.6% YoY, 17.1% margin).

• Free cash flow: R$6.5 billion (vs. -R$1.1 billion in 2023); operating cash flow: R$10.8 billion; cash conversion cycle: 4.1 days.

• Gross profit: R$15.8 billion; gross margin: 25.8% (+9.3 p.p. YoY); net margin: 6.0% (vs. -3.5% in 2023).

• Net debt: R$8.3 billion (-12.1% YoY); leverage: 0.79x EBITDA (down from 2.01x in 2023); average debt maturity: 8.4 years.

• EPS: R$1.94 (vs. -R$1.49 in 2023).

Outlook and guidance

• Entering 2025 focused on sustainable growth, capacity expansion in processed products, further market diversification, and embedding BRF+ in company culture.

• Ongoing capital discipline, operational efficiency, and investments in Brazil, China, and the Middle East to sustain high performance and cash generation.

• Expectation of continued balanced supply and demand for poultry and pigs, supporting favorable protein prices.