Marfrig Global Foods SA

Good afternoon. Thank you for waiting. Welcome to Marfrig's Q2 2024 earnings call. We would like to inform you that this is being recorded and interpreted to both languages.

For Portuguese, hit the button Portuguese, and you can also mute the original audio.

We have Mr. Marcos Molina, Founder and Chairman of the Board. Mr. Tim Klein, CEO of North American Operation. Rui Mendoza, South American CEO. Dan David, CFO and IR Director. Jose Naces Corseria, Corporate Finance Director. Mr. Paulo Pianis, Sustainability Director. And finally, IR Director, Mr. Eduardo Puzziello, We would like to inform you that all participants will be in listen-only mode. We will then have a Q&A session. Further instructions will be given then. Before we proceed, we would like to say that any forward-looking statements are related to the business perspectives of Murfree Global Food or its projections, projections based on the company's premises. as well as currently available information for Marfree Global Foods SA. Forward-looking segments are not any guarantee of performance because they relate to future events that may or may not occur. Investors and analysts should understand that overall economic conditions, among other operational factors, may impact Marfrig's results that will lead to results that are substantially different from those expressed in forward-looking statements. I'll turn it over to Mr. Eduardo Puzielo for his presentation. You may have the floor now, sir. Thank you for attending Marfrig's Q2 2024 earnings call. Let me start with the main operational highlights of the quarter. I will start with Maverick's consolidated net revenue at 34.8 billion reals, up 16.5% above the net revenue for the same period in 2023. When we break that down by geography, North America's operation accounted for 47% of the consolidated revenue for the quarter. South America's operation, considering only the managerial results of continuing operations, represented 10%. and BRF's results accounted for 43%. When we analyzed the revenues separately, the revenue from continuing operations in South America showed net revenue of 3.7 billion reals, and the adjusted EBITDA margin was 9.1%. BRF's net revenue reached 14.9 billion reals, and the adjusted EBITDA margin was 17.6%. Finally, the North America operation showed, for this quarter, net revenue of 3.1 billion U.S. dollars and an adjusted EBITDA margin of 2.9%. The consolidated adjusted EBITDA was 3.4 billion reals, 64.8% higher than the EBITDA for Q2 of last year. As a consequence, the consolidated adjusted EBITDA was 9.7%, 285 bps higher than the margin for the same period last year. When we analyzed the adjusted EBITDA for the quarter consolidated by geography, North America's operation accounted for 14% of the total, while South America's operation represented 8%. And BRF's EBITDA accounted for 78% of that total. Moving on to the main financial highlights. I would like to point out that the free cash flow was positive 419 million rails and that income for the first quarter of 2024 was 75 million rails. A turnaround from the loss of 784 million rails in the same period of last year. Dollar continues to be the main currency of our results, accounting for 74% of the consolidated revenue in Q2 of this year. Regarding Marfrig's financial leverage, we have been in the process of deleveraging over the past quarters. In that context, at the end of the quarter, we achieved consolidated leverage of 3.38 times the net debt to adjusted EBITDA multiple for the last 12 months, compared to 3.43 times at the end of Q1 of 2024. Moving on to sustainability. For the 12th year in a row, Marfrig achieved 100% compliance in the audit of the public commitment of livestock in the Amazon. Finally on August 9th, Marfrig received the expert's opinion from the general superintendents of CAGI recommending that its court approve the divestment of assets in South America through the execution of a concentration control agreement that provides for the reduction of the material and geographic limitations established in the expansion restriction clause, which will not change the other terms and conditions set forth in the contract and the operation. And I'll turn it over to Mr. Tim Klein, CEO for North America. Tim, please proceed.