Marfrig Global Foods SA

Good afternoon, and thank you for waiting. Welcome to Mark Frigg's earning call for Q3 of 2024. This presentation is being recorded and interpreted into both languages. For Portuguese, click on the interpretation button, Portuguese.

You can choose to mute original audio.

We have Mr. Marcos Molina, Founder and Chairman of the Board. Mr. Tim Klein, CEO for North American Operations. Mr. Rui Mendoza, South America Operations. Mr. Tang David, VP of Finance and IR. Jose Inacio-Scossier, Corporate Director. Mr. Paulo Pienes, Sustainability Director. and IR Director, Mr. Eduardo Puziello are all with us today. All participants will be in a listen-only mode. We will then have a Q&A session. Further instructions will be given then. We would like to clarify that statements made during this conference are related to the company's business perspectives. forecasts, operational goals, financial goals that are based on the beliefs currently available to the company, as well as information available to Marfreet Global Foods SA. Future projections are no guarantee of performance because they involve uncertainties. They involve future events that depend on circumstances that may or may not occur. Investors and analysts that overarching economic conditions among other operational factors may affect Marfrig's results that will lead to results that are substantially different from these future assumptions. Over to Mr. Eduardo Puzielo. You may have the floor now. Thank you for joining Marfrig's earnings call for the third quarter of 2024. Let me begin with Marfrig's consolidated revenue at 37.7 billion rials, 12.4% above net revenue for Q3 of last year. Regarding revenue by geography, the North America operation accounted for 48% of consolidated revenue for the quarter. South America operation, considering only the managerial results of continued operations, accounted for 11%. And BRF's results accounted for 41%. When we analyze revenues separately, the continued operation in South America recorded net revenue of 4.3 billion rials with an adjusted EBITDA margin of 12.1%. BRF's net revenue reached 15.4 billion rials with an adjusted EBITDA margin of 19.2%. Finally, the North American corporation reported net revenue of $3.2 billion, with an adjusted EBITDA margin of 2.4%. The consolidated adjusted EBITDA was 3.9 billion reals, 60% higher than that of Q3 of 23. As a consequence, the consolidated adjusted EBITDA reached 10.3%, 307 biffs higher than the margin for the same period last year. When we analyzed the adjusted EBITDA for the quarter consolidated by geography, North America accounted for 11% of the total. The South American operation represented 13%. The BRF's EBITDA accounted for 76% of the total. On to the financial highlights now. I'd like to point out that the free cash flow was positive at 1.4 billion rails, and the net income for the third quarter of this year was 79 million rials, reversing a loss of 112 million rials for the same period in 2023. The dollar remains the primary currency for our results, accounting for 74% of the consolidated revenue in Q3 of this year. Regarding Marfrig's financial leverage now, we have been deleveraging over recent quarters. Within that context, at the end of this quarter, we reached a consolidated leverage of three point times the net debt multiple over the adjusted EBITDA for the last 12 months, compared to 3.38 times at the end of the second quarter of 2024. On September 25th, MaFrig received a favorable court decision from CAGI regarding the sale of assets in South America, which were delivered on October 28th, with proceeds totally 5.7 billion reals. Finally, The board approved yesterday the distribution of 2.5 billion rials in dividends, a yield of over 17% compared to the last share price of the company. I'll turn it over now to Tim Klein, CEO for the North American operation. You may proceed now, Tim.