EARNINGS
PRESENTATION
2nd Quarter / 2024
EARNINGS RELEASES
HIGHLIGHTS OF 2Q24
Consolidated Net Revenue
R$ 34.8 billion (+16.5% over 2Q23)
Consolidated ADJ EBITDA
R$ 3.4 billion (+64,8% over 2Q23)
ADJ EBITDA Mg.
9.7% (+285 bps over 2Q23)
FINANCIAL
Net Profit
R$ 75 million (reversal from loss of
R$ 784 million in 2Q23)
South America Continued Managerial Operations
Net Revenue: R$ 3.7 billion
ADJ EBITDA Margin : 9.1 %
BRF
Net Revenue: R$ 14.9 billion
ADJ EBITDA Margin : 17.6%
Revenue by Currency
Dollar: 74% | Real: 24% | Others: 2%
North America Operation
Net Revenue: US$ 3.1 billion
ADJ EBITDA Margin: 2.9%
Revenue by Operation*
North America South America | BRF | |
47% | 10% | 43% |
ADJ EBITDA by Operation | ||
North America South America | BRF | |
14% | 8% | 78% |
Ratification in the BRF council
For the 12th consecutive year, Marfrig achieved 100% compliance in the audit of the Public Commitment to Amazon Cattle Ranching.
Free Cash Flow
R$ 419 million
Financial Leverage
In Real: 3.38x | In Dólar: 3,05x
CADE's Opinion
On August 9,2024, CADE received the recommendation to the Court for approval of the transaction through agreement on the non compete clause, which will not change
other conditions set out in the Contract. | 2 |
*Consolidated Results are managerial and only include the results of the ongoing assets of the South America Operation in 1Q23 and 1Q24. The numbers presented in the ITR do not consider discontinued operations from the third quarter of 2023 - for reference, see note 12
OPERATIONS
3
N O R T H A M E R I C A O P E R A T I O N
OPERATIONAL AND FINANCIAL PERFORMANCE - 2Q24
SALES VOLUME
(Thousand tons)
+2.5%
483495
86%87%
2Q23 2Q24
NET REVENUE
(US$ million)
+5.5%
2,938 3,099
90%90%
2Q23 2Q24
800
700
600
500
400
300
200
100
0
ADJ EBITDA (US$ million)
- ADJ EBITDA Margin (%)
-2.3 p.p.
5.2%2.9%
-41.3%
153
90
2Q232Q24
Net Revenue
US$ 3.1
billion
ADJ EBITDA
14 %
of the
consolidated
Exports | Domestic Market | Exports | Domestic Market | ADJEBITDA | ADJEBITDA Margin | |||||
4
N O R T H A M E R I C A
MARKET DATA - USA
Cattle Price
(USDA KS Steer $/cwt)¹
+6.1%
Drop Credit
($/cwt)
-10.4%
Domestic Price
(USDA Comprehensive Cutout $/cwt)
+1.1%
Spread
(Cutout Ratio)
-5.1%
174.7 180.1 185.4
12.87
11.70 11.53
302.9 | 297.7 | 306.3 | 1.75 | 1.66 | 1.66 | ||
2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24
The combination of a 6.1% increase in the cost of cattle, a reduction of 10.4% in the drop credits and a increase of
1.1% in the domestic price resulted in a +5.4% lower spread compared to the same period in 2023.
5
SOUTH AMERICA CONTINUED MANAGERIAL
OPERATIONS | |||||||||
OPERATIONAL AND FINANCIAL | |||||||||
PERFORMANCE - 2Q24* | |||||||||
SALES VOLUME* | NET REVENUE* | ADJ EBITDA* (R$ million) | Net Revenue | ||||||
(Thousand tons) | (R$ million) | & | ADJ | EBITDA Margin (%) | |||||
-1.4 p.p. | R$ 3.7 | ||||||||
30.9% | +17.2% | 10.5% | |||||||
9.1% | billion | ||||||||
190 | 3,666 | ||||||||
145 | 3,127 | ||||||||
42% | 54% | ||||||||
ADJ EBITDA* | |||||||||
700 | |||||||||
48% | 60% | 600 | +1.5% | ||||||
500 | |||||||||
8% | |||||||||
400 | 329 | 334 | |||||||
58% | 300 | ||||||||
52% | 46% | 200 | |||||||
40% | of consolidated | ||||||||
100 | |||||||||
0 | |||||||||
2Q23 | 2Q24 | 2Q23 | 2Q24 | 2Q23 | 2Q24 | ||||
Export | Domestic Market | Domestic Market | Export | EBITDA | EBITDA Margin | ||||
6 | |||||||||
*Consolidated Results are managerial and only include the results of the ongoing assets of the South America Operation in 1Q23 and 1Q24. The numbers presented in the ITR do not consider discontinued operations from the third quarter of 2023 - for reference, see note 12 |
S O U T H A M E R I C A C O N T I N U E D M A N A G E R I A L
MAIN EXPORTDESTINATIONS
(% of revenue)
17% | |||||||||||
13% | |||||||||||
14% | |||||||||||
69% | 2Q23 | 7% | 46% | 2Q24 | |||||||
6% | 12% | ||||||||||
5% | |||||||||||
11% | |||||||||||
Asia (CH & HK) | Europe | Middle East | North America | Outros | |||||||
Marfrig obtained 29 new approvals in the first half of 2024 for its Continued Operations in South America.
7
*Consolidated Results are managerial and only include the results of the ongoing assets of the South America Operation in 1Q23 and 1Q24. The numbers presented in the ITR do not consider discontinued operations from the third quarter of 2023 - for reference, see note 12
OUR BRAND IS
BLUE
OUR DREAM IS
GREEN!
8
Highlights
Sustentability
2Q24
100% of direct suppliers monitored by satellite . In 2Q24 obteined 87% control of inderect suppliers in the Amazon and
73% in Cerrado
For the 12th consecutive year, Marfrig achieved 100% compliance in the audit of the Public Commitment to Amazon Cattle Ranching.
In 2Q24, Marfrig initiated, with the support of specialized consulting, two projects to support its climate strategy with an emphasis on a plan to mitigate Scope 3 emissions and climate adaptation of its direct operations and supply chain.
More than 470 farms were reinclueded during this year within the Verde + program.They are suppliers that returned to operate in accordance with our commitments - demonstrating a Strong adherence to the principle of inclusion within this program.
Around 4,000 farms were reincluded from 2021 to 2Q24.
More than 1,600 new suppliers joined the Marfrig Club program, which disseminates good sustainability practices throughout the company's supply chain
In 2Q24, Marfrig released the 2023 sustainability report, highlighting aspects related to our business strategy, governance, management, operations, economic and financial impacts and results, in addition to the ESG aspects that permeate our activities and the guidelines that direct them.
CONSOLIDATED
RESULTS
10