Q2 2024 BRF SA Earnings Call Transcript
Key Points
- BRF SA (BRFS) reported a significant revenue growth of 22.3% compared to the same period in 2023, marking the best second quarter in its history.
- The company achieved an EBITDA of BRL2.6 billion with a margin of 17.6%, indicating improved profitability for the sixth consecutive quarter.
- BRF SA (BRFS) observed relevant growth in both international and domestic markets, with the best international market margin in the last nine years.
- The company's efficiency journey, guided by BRF+ 2.0, continues to show improvement in operating indicators, contributing to a high-performance culture.
- BRF SA (BRFS) achieved the lowest leverage in nine years at 1.4 times EBITDA, reflecting strong financial management and capital structure optimization.
- Despite strong performance, the company faces risks related to macroeconomic factors and market conditions that could impact future results.
- The Newcastle disease outbreak in Brazil posed challenges, requiring quick operational adjustments and impacting export volumes.
- There is ongoing concern about the balance of supply and demand in the market, particularly in Brazil, which could affect future pricing and profitability.
- The company must navigate potential impacts from new market entrants and increased competition in specific product lines like sausages and breaded products.
- BRF SA (BRFS) needs to continue managing tax credits and offsets effectively to maintain cash flow and profitability amidst complex tax environments.
Good morning, ladies and gentlemen. Welcome to the teleconference from BRF to discuss the results referring to the second quarter of 2024. This video conference is being recorded and then can be accessed at the website of the company at ri.brf-global.com. The presentation is also available for downloading. And at this moment, all the participants are connected just as listeners, and then we will start the question-and-answer session when more instructions will be provided.
Before we continue, I would like to reinforce that the prospective statements are based on beliefs and assumptions of BRF and the current information available for the company. This information may involve risk, losses as they talk about future events and depend on circumstances that may or may not happen.
Investors, analysts and reporters may take into account that events related to the macroeconomic environment, to the segment and other factors may make the results be materially different from those expressed in the statements of the company. Present in this conference, we have Mr. Miguel Gularte, CEO; and Fabio
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