EARNINGS
PRESENTATION
3rd Quarter / 2024
EARNINGS RELEASES
HIGHLIGHTS OF 3Q24
Consolidated Net Revenue
R$ 37.7 billion (+12,4% over 3Q23)
Consolidated ADJ EBITDA
R$ 3.9 billion (+60,4% over 3Q23)
ADJ EBITDA Mg.
10.3% (+307 bps over 2Q23)
FINANCIAL
Net Profit
R$ 79.1 million (reversal from loss of R$ 112 million in 3Q23)
South America Continued Managerial Operations
Net Revenue: R$ 4.3 billion
ADJ EBITDA Margin : 12.1 %
BRF
Net Revenue: R$ 15.4 billion
ADJ EBITDA Margin : 19,2%
Revenue by Currency
Dollar: 74% | Real: 24% | Others: 2%
North America Operation
Net Revenue: US$ 3.2 billion
ADJ EBITDA Margin: 2.4%
Revenue by Operation*
North America South America | BRF | |
48% | 11% | 41% |
ADJ EBITDA by Operation | ||
North America South America | BRF | |
11% | 13% | 76% |
CADE's Approval
On September 25, 2024, Marfrig received full approval from CADE for the sale of assets located in Brazil, Argentina, and Chile. The assets were delivered on 10/28, with the receipt of R$ 5.7 billion.
Free Cash Flow
R$ 1,432 million
Financial Leverage
In Real: 3.00x | In Dólar: 2.86x
Dividend Distribution
The Board of Directors approved, on 11/13, | |
the distribution of R$2.5 billion in interim | |
dividends, a dividend yield of over 17% | |
based on the last share price | 2 |
*Consolidated Results are managerial and only include the results of the ongoing assets of the South America Operation in 3Q23 and 3Q24. The numbers presented in the ITR do not consider discontinued operations from the third quarter of 2023 - for reference, see note 12
OPERATIONS
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N O R T H A M E R I C A O P E R A T I O N
OPERATIONAL AND FINANCIAL PERFORMANCE - 3Q24
SALES VOLUME
(Thousand tons)
-4.9%
534508
87%86%
3Q23 3Q24
NET REVENUE
(US$ million)
-3.9%
3,375 3,244
800
700
600
500
90%91% 400
300
200
100
0
3Q23 3Q24
ADJ EBITDA (US$ million)
- ADJ EBITDA Margin (%)
-2.0 p.p.
4.4%2.4%
-47.1%
150
79
3Q233Q24
Net Revenue
US$ 3.2
billion
ADJ EBITDA
11 %
of the
consolidated
Exports | Domestic Market | Exports | Domestic Market | ADJEBITDA | ADJEBITDA Margin | |||||
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N O R T H A M E R I C A
MARKET DATA - USA
Cattle Price | Drop Credit | Domestic Price | Spread | ||||||||||||||||
(USDA KS Steer $/cwt)¹ | ($/cwt) | (USDA Comprehensive Cutout $/cwt) | (Cutout Ratio) | ||||||||||||||||
+3.2% | -15.4% | +2.6% | -1.2% | ||||||||||||||||
185,4 | 185,9 | 13,53 | 306,3 | 313,7 | 1,70 | 1,66 | 1,68 | ||||||||||||
180,1 | 305,7 | ||||||||||||||||||
11,53 | 11,45 | ||||||||||||||||||
3Q23 22Q4 3Q24 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24
The combination of a 3.2% increase in the cost of cattle, a reduction of 15.4% in the drop credits and a increase of
2.6% in the domestic price resulted in a -1.2% lower spread compared to the same period in 2023.
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SOUTH AMERICA
CONTINUED MANAGERIAL OPERATIONS
OPERATIONAL AND FINANCIAL PERFORMANCE - 3Q24*
SALES VOLUME* | NET REVENUE* |
(Thousand tons) | (R$ million) |
ADJ EBITDA* (R$ million)
- ADJ EBITDA Margin (%)
-2.3 p.p.
Net Revenue
R$ 4.3
+22% | +28.9% |
219 | 4,268 |
179 | 3,311 |
40% | |
14.4%
12.1%
billion
36% | 55% | 700 | ||||||
47% | 600 | |||||||
500 | ||||||||
400 | ||||||||
64% | 60% | 300 | ||||||
53% | 45% | |||||||
200 | ||||||||
100 | ||||||||
0 | ||||||||
3Q23 | 3Q24 | 3Q23 | 3Q24 | |||||
Export | Domestic Market | Domestic Market | Export | |||||
+8.2%
478517
3Q23 3Q24
EBITDA | EBITDA Margin |
ADJ EBITDA*
13%
of consolidated
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*Consolidated Results are managerial and only include the results of the ongoing assets of the South America Operation in 3Q23 and 3Q24. The numbers presented in the Financial Statement 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)
20%
16%
15%
50% | 3Q23 | 12% | 49% | 3Q24 |
9% | 13% |
9% | 7% |
Europe | Asia (CH & HK) | Middle East | North America | Others |
Marfrig obtained 30 new approvals in the 9M24 for its Continued Operations in South America.
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*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 O P E R A T I O N
POST-TRANSACTION STRUCTURE
Post-Transaction Structure
Continued Operations
BRAZIL
1 - Várzea Grande Complex
2 - Bataguassu (hamburguer)
3 - Promissão Complex
4 - Pampeano (processed)
ARGENTINA
5 - San Jorge Complex
6 - Campo del Tesoro
7 - Baradero (processed)
8 - Arroyo Seco (processed)
URUGUAY
9 - Tacuarembó Complex
10 - Fray Bentos (processed)
11 - Rio Negro (feedlot)
CHILE
12 - Distribution
- On 09/25 CADE approved the transaction for the sale of assets in Brazil, Argentina and Chile
- Asset sale transaction in Uruguay still subject to approval
1
2
3
5 9 4
81011
7
6
Remaining assets
Industrial complexes
DC's
*Management results of the Operation's continued assets for the entire 9M accumulated in 2023 and 2024 - considering eliminations. For comparison purposes, the numbers presented in the ITR disregard operations discontinued from the third quarter of 2023 onwards. | 8 |
OUR BRAND IS
BLUE
OUR DREAM IS
GREEN!
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Highlights
Sustentability
3Q24
100% of direct suppliers monitored by satellite . In 3Q24 obteined 89% control of inderect suppliers in the Amazon and
76% in Cerrado
More than 580 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 4,100 farms were reincluded from 2021 to 3Q24.
More than 1,750 new suppliers joined the Marfrig Club program, which disseminates good sustainability practices throughout the company's supply chain
In 2024, 100 new producers were registered in the Bezerro Sustentável Program in the Vale do Jurema region of MT, wich provides technical assistance to small-scale livestock farmers in order to support land regularization and promote the intensification os livestock production and forest restoration, with individual traceability of animals from birth.
Expansion of the Reverse Logistics for Packaging, reaching 2,000 tons of recyclable materials, with a 49% growth compared to the previous period!
We have earned the Gold Seal of the Brazilian GHG Protocol Program. The Gold Seal is an important certification granted to companies that meet all transparency criteria in publishing their greenhouse gas emissions inventory. It is worth noting that Marfrig was a pioneer in the beef industry for GHG reporting, being the only one to report on scopes 1, 2, and 3!