In This Article:
Release Date: May 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BRF SA (NYSE:BRFS) reported a profit of 1.2 billion reais, doubling the profit from the same period last year.
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Net revenue increased by 16% to 15.5 billion reais compared to the first quarter of 2024.
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The company achieved a record first-quarter EBITDA of 2.8 billion reais, marking a 30% increase from the previous year.
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BRF SA (NYSE:BRFS) reached the lowest leverage in its history at 0.54 times EBITDA.
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The BRF Plus program delivered 305 million reais in efficiency gains, contributing to continuous improvement across operations.
Negative Points
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The avian flu outbreak led to temporary market closures, including China, impacting export dynamics.
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There is uncertainty regarding the regionalization agreements and their effectiveness in mitigating the impact of avian flu on exports.
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The company faces challenges in maintaining stable pricing and demand dynamics amid fluctuating market conditions.
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Despite growth, there is a need for further investment to enhance capacity and meet increasing demand.
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The company is still working on improving efficiency and sees room for further enhancements in logistics and service levels.
Q & A Highlights
Q: Could you elaborate on the impact of avian flu on BRF's operations and the measures in place to mitigate risks, especially concerning large markets like China? A: (Miguel Guilart, CEO) The Ministry of Agriculture has implemented regionalization protocols for avian flu, which initially led to temporary market closures, such as in China. However, many countries have regionalization agreements that limit the impact to specific areas. BRF has contingency plans, including alternative markets and strategic inventories, to manage such situations. We are confident in Brazil's strong biosafety reputation and expect to navigate these challenges effectively.
Q: What are BRF's growth strategies, both organic and inorganic, moving forward? A: (Fabio Mariano, CFO) BRF is focused on volume growth, with a 16% revenue increase this quarter, driven by better utilization of industrial assets. We have ongoing investments to expand capacity, aiming for an additional 3-5% growth as these projects mature. Inorganically, strategic acquisitions, like the recent ones in China and Saudi Arabia, align with our goal of adding value and expanding our market presence.
Q: How is BRF managing domestic demand and pricing dynamics, especially considering the seasonal consumption patterns in Brazil? A: (Miguel Guilart, CEO) The domestic market remains balanced, with strong demand allowing for price adjustments. We increased prices in January 2025, which were well-received. BRF continues to enhance productivity and logistics, ensuring we meet customer needs efficiently. The current quarter's demand and pricing dynamics are similar to the first quarter, with a focus on increasing market penetration.