BRF SA (BRFS) Q3 2024 Earnings Call Highlights: Record EBITDA and Market Expansion Amid Challenges

GuruFocus.com11-19

Release Date: November 14, 2024 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points BRF SA (NYSE:BRFS) reported one of the best ...

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GuruFocus has detected 7 Warning Signs with BRFS.\n\nQ: How do you see customer demand and pricing for processed foods in the domestic market given rising food inflation? A: Miguel Gilar, CEO: We are seeing stable demand, which allows us to maintain and potentially improve pricing. Chicken remains a competitive protein, and the exchange rate is favorable for imports. We are also investing in added value products, which is reflected in the growth of processed goods. Fabio Mariano, CFO, added that demand is solid and stable, linked to consumer income and confidence, leading to increased volumes and market participation.\nQ: Can you provide insights into the international market, particularly the processed goods segment and cash generation? A: Miguel Gilar, CEO: We see a favorable scenario with competitive chicken protein and market expansion. The BRF Plus program is embedded in our culture, driving performance improvements across geographies. Fabio Mariano, CFO, noted that processed goods are growing in Turkey and the Gulf region, and capital allocation will focus on expanding capacity for added value products.\nQ: What are your expectations for the international market, particularly in Asia and the impact of pork prices? A: Miguel Gilar, CEO: Despite being classified as Newcastle-free, some markets remain closed. However, we are optimistic about reopening these markets. Fabio Mariano, CFO, added that profitability is consistent across regions, and new export permits have significantly contributed to our results. We expect stable prices for pork and poultry, with no significant supply-demand imbalances.\nQ: How do you prioritize capital allocation, and what are your growth targets? A: Fabio Mariano, CFO: Our priority is company growth, with a focus on expanding capacity for processed goods. We have a project pipeline of 1 billion for evaluation, prioritizing those with economic viability. We aim to increase investments in 2025 compared to previous years, focusing on sustainable growth and shareholder returns.\nQ: Can you elaborate on the BRF Plus program and its impact on future performance? A: Miguel Gilar, CEO: BRF Plus is a continuous improvement program, initially based on 2019 benchmarks. We have already met our 2024 goals and are planning for 2025. The program focuses on internal and external benchmarks, with opportunities for further improvement. It enhances our culture and operational efficiency across geographies and business segments.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484581009"}