Marfrig Global Foods SA

Good morning and thank you for waiting. Welcome to Maher Frigg's Q1 2025 earnings call and the proposed merger announced yesterday via a joint material fact by Maher Frigg and BRF. We'll be presenting the company's results and this presentation is being recorded and interpreted simultaneously in both languages. To listen to the conference in Portuguese, please click the interpretation button and select Portuguese. For the best audio experience, please mute the original audio. Joining us today are Mr. Marcos Molina, founder and chairman of the board of Mr. Tim Klein, CEO of North America Operations, Mr. Rui Mendoza, CEO of South America Operations, Mr. Tang David, CFO and Head of Investors Relations, and Mr. Stefan Solimovski, our Investor Relations Officer. Please be advised that all participants will remain in listen-only mode during the presentation. We'll then have a specific presentation for the transaction. Before we begin, please note that any forward-looking statements made during this call are based on management's current expectations and assumptions, as well as information available to Marfrey Global Foods. They are based on current information available to the company. These statements are not guarantees of future performance as they involve risks, uncertainties, and assumptions as they relate to future events. which may or may not occur. Investors and analysts should be aware that broader economic conditions, industry trends, and other operating factors may impact Marfrig's performance and cause actual results to differ materially from those discussed. I'll now turn over to Mr. Tang David for his presentation. Good morning, everyone. Thank you for joining another Marfrey Global Foods earnings call. Let me walk you through our consolidated results for the first quarter 2025. These figures include North American Beef Management View, South American Beef Continuing Operations, and BRF, in line with CPC and IFRS standards. In slide two, we have the highlights of Q1. we had consolidated net revenue reached 38.6 billion, up 27% versus Q1 2024. Adjusted consolidated managed euro EBITDA came to 3.2 billion reais, with an EBITDA margin of 8.3%, up 20% year over year. Our strategy of diversifying proteins and geographies with a focus on high-value data portfolios, premium brands, and processed products continue to support sustainable growth in both revenue and EBITDA. As a result, we generated free cash flow of R182 million, an increase of R740 million year-over-year, and net income of 88 million, up from 62 million in Q1284. This was our seventh straight quarter of the leveraging, bringing the leverage down to 2.69 times from 2.82 times in 2024. I'll now turn it over to Tim Klein to discuss North America operations. Over to you, Tim.

Okay. Let's begin on slide four, where I will comment on the results for the first quarter. Starting on the first chart on the left, sales volume was 5.2% higher than the same period of the previous year. Net sales were 3.3 billion, an increase of 15.4% versus last year. EBITDA, adjusted for the non-recurring startup cost of our new liberal facility, was $6 million, 89.7% lower than last year, with an EBITDA margin of 0.2%. Beef demand in the quarter was strong, with wholesale demand and retail prices higher than last year. Boxed beef prices moved higher, but not enough to offset sharply higher cattle prices and lower drop credit values. Now I'll move to slide five, where I will talk about U.S. market data. Starting on the left, USDA reported Kansas live cattle prices averaged $202.32 per hundredweight, up 12.3%. The USDA comprehensive cutout averaged $324.68 per hundredweight, up 9.1%. while the drop credit declined 1.2% to an average of $11.56 per hundredweight. The cutout ratio was 1.60. Consumer demand for beef continues to be robust, especially given record carcass weights. As we move into the barbecue season, demand will continue strong seasonally. For the remainder of 2025, lower-fed cattle supplies will lead to reduced capacity utilization across the industry. We are seeing some encouraging signs with cow liquidation numbers declining and more heifers being held back during this phase of the cattle cycle. Now I'll pass to Rui.

Thank you, Tim.