Marfrig Global Foods SA

Boa tarde e obrigado por aguardarem. Sejam bem-vindos à teleconferência da Marfree Global Foods SA referente aos resultados do segundo trimestre de 2025. Informamos que a apresentação está sendo gravada e traduzida simultaneamente para ambos os idiomas. Para aqueles que desejam ouvir a videoconferência em português, por favor clique no botão Interpretação e selecione a opção Português. Para aqueles que desejarem ouvir a videoconferência em português, por favor, clique no botão Interpretation e selecione a opção Português. Para uma melhor experiência, clique em Silenciar o áudio original. For those who want to listen to the videoconference in English, please click on Interpretation button and then select English option. For a better experience, click on Mute original audio. Mr. Tim Klein, CEO for North America.

Rui Mendonça, CEO for South America. Mr. Tang David, VP and IR Director. And Mr. Stefan Zolinowski, IR Director. Participants will be in a listen-only mode, who then have a Q&A session. Further instructions will be given then. Before proceeding... We would like to say that any forward-looking statements are based on Marfrig Global Foods' perspectives, projections, financial and operational goals, based on the current beliefs of the company's management, as well as information currently available to the company. Forward-looking statements are no guarantee of performance because they involve risks, because they relate to future events that may depend on circumstances that may or may not occur. Investors and analysts should understand that industry circumstances may impact the company's results, leading the company to have results that are expressed in those forward-looking statements. I would like to give the floor to Mr. Tang David. You may proceed now, sir. Good afternoon, and thank you for joining us for another Marfrig Global Foods earnings call. Let's start with our consolidated results for the second quarter of 2025. They include North American beef, South American beef, continuing operations, and BRF, in line with CPC and IFRS standards. Turning to slide two with the key highlights of the quarter. In Q2-25, consolidated net revenue came in at 37.8 billion BRLs, up 8.6% year over year. Adjusted managerial consolidated EBITDA was 3 billion BRLs, with a consolidated margin of 8%. Operating cash flow totaled 3 billion BRLs. 17% higher than Q2-24. Net income was 85 million BRLs, a 13% increase versus the same period last year. We closed the quarter with leverage measured as net debt to adjust the dividend for the last 12 months at 2.71 times in Brazilian reals compared to 3.38 times a year ago. I'll now hand over to Tim Kline to walk you through the North American operation.

Thank you, Tang. Let's begin on the slide before I will comment on the results for the second quarter. Starting on the first chart on the left, sales volume was 5.6% lower than the same period of the previous year. Industry kills were down 6.3%, driven by lighter placements into feedlots and longer feeding periods. Net sales were $3.3 billion, an increase of 5.3% versus last year, due mainly to higher beef prices. EBITDA was $25 billion, 71.8% lower than last year, with an EBITDA margin of 0.8%. Beef demand in the quarter continues to be exceptionally strong, given record prices both at retail and food service. However, the advances in boxed beef prices lag the surge in live cattle prices, which reach record levels during the quarter. Now move to slide five, where I will talk about U.S. market data. Starting on the left, USDA reported Kansas live cattle prices averaged 219.27 per hundredweight, up 18.3% versus last year. The USDA comprehensive cutout averaged 351.27 per hundredweight, up 14.7%. while the USDA reported drop credit increased 0.2% to an average of $11.56 per hundredweight. The USDA cutout ratio was 1.6 versus 1.65 last year. Looking forward to the second half of 2025, cattle supplies will remain tight as we move through this phase of the cycle, forcing reduced capacity utilization across the industry. Strong consumer demand for beef and titer supplies have provided support for raising cutout values to record levels. We expect this to continue in the second half of the year. We are encouraged by the latest USDA data that shows cow liquidation subsiding and more heifers being held back at the ranch. As more data becomes available, it will become clearer what fed cattle supplies will look like through the rest of the cattle cycle. Now I'll pass to Rui.