• Net Revenue: BRL 61.4 billion, a 14% increase from 2023.
• EBITDA: BRL 10.5 billion, the highest in company history, more than double the previous year.
• Net Profit: BRL 3.7 billion for the year.
• Free Cash Flow: BRL 6.5 billion, an all-time record.
• Leverage: 0.75x EBITDA, down from 2x in 2023.
• Gross Profit: BRL 15.8 billion.
• EBITDA Margin (Brazil): 15.5% with growth in processed product categories.
• EBITDA Margin (International): Exceeded 20% in 2024.
• Pet Products EBITDA: BRL 422 million.
• Operating Cash Flow: Almost BRL 10.8 billion, the best in company history.
• Net Debt: BRL 8.3 billion.

• Warning! GuruFocus has detected 4 Warning Signs with BRFS.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• BRF SA (NYSE:BRFS) reported a record EBITDA of BRL 10.5 billion in 2024, more than doubling the previous year's performance.
• Net revenue increased by 14% to BRL 61.4 billion, showcasing strong growth.
• The company achieved a significant reduction in leverage, reaching 0.75x EBITDA compared to 2x in 2023.
• BRF SA (NYSE:BRFS) expanded its market share and saw growth in the Value-added portfolio, contributing to its strong performance.
• The international segment achieved an EBITDA margin exceeding 20%, with strong performance in Turkey and the Gulf area.

Negative Points

• The company faces potential cost pressures and inflation challenges in 2025, which could impact profitability.
• Non-recurring effects related to variable compensation and profit sharing impacted costs in the fourth quarter.
• There is uncertainty regarding the impact of macroeconomic factors on future results, as highlighted in the earnings call.
• The company is still unable to export from certain plants in Rio Grande do Sul to China due to regulatory restrictions.
• Despite strong performance, the company acknowledges the need for continuous improvement in operational efficiency and market execution.

Q & A Highlights

Q: Can you discuss the potential challenges and opportunities for BRF in 2025, particularly regarding inflation and cost pressures? A: Miguel de Souza Gularte, CEO, explained that BRF is well-prepared to handle the cost challenges in 2025, emphasizing the company's ability to process information and make strategic decisions. He noted that the BRF+ program will continue to drive performance improvements and that the company is starting the year strong, with January and February showing positive results. Fabio Mendes Mariano, CFO, added that non-recurring costs in the last quarter of 2024 will not affect 2025, and the company expects a favorable scenario for protein prices.

Q: How does BRF plan to manage pricing strategies for processed products in Brazil and the international market? A: Miguel de Souza Gularte, CEO, stated that BRF is observing a balanced relationship between supply and demand, which supports pricing strategies. He highlighted the importance of commercial execution and brand strength in maintaining price resilience. Fabio Mendes Mariano, CFO, added that the company employs different pricing strategies across regions in Brazil, focusing on maximizing revenue and profitability while considering market characteristics.

Q: What are BRF's priorities for capital allocation and expansion projects in 2025? A: Fabio Mendes Mariano, CFO, emphasized that BRF will focus on projects that expand production capacity for processed products, particularly frozen and dairy products. He noted that the company has numerous projects under consideration, but only those meeting economic and financial viability criteria will proceed. The company aims to capitalize on growth opportunities in Brazil and maintain a steady cash generation.

Q: Can you elaborate on BRF's market share strategy and the impact of brand strength on performance? A: Miguel de Souza Gularte, CEO, explained that market share is an outcome of brand exposure, commercial execution, and operational efficiency. He highlighted the importance of continuous improvement across all aspects of the business, including production, logistics, and sales. The company aims to maintain and grow its market share by leveraging its strong brand portfolio and operational capabilities.

Q: How does BRF view the international market's contribution to its profitability, and what are the expectations for 2025? A: Fabio Mendes Mariano, CFO, stated that the international market showed significant profitability in 2024, driven by a balanced supply and demand scenario. He expects this trend to continue in 2025, with both poultry and pig proteins performing well. The company is focused on expanding its export capabilities and maintaining price resilience through strategic market diversification.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.