BRF SA Q3 FY2023 earnings call

• Discipline in BRF us efficiency plan contributed to positive performance. - Increased profitability of processed food portfolio in Brazil, downswing in product costs, and continued improvement of BRF plus. - Strengthened capital structure using funds from follow-on offering. - Progress in efficiency plan: feed conversion in poultry and pigs fell, factory output increased, logistics improved. - Sustainability achievements: 100% poultry and pork slaughter units certified, water consumption reduction, clean energy use, recycled plastic packaging.

Brazil: Reported an EBITDA margin of 11.9%, with processed foods portfolio profitability in line with historical levels despite sluggish consumer spending. International: EBIT margin came to 4.2%, impacted by adverse sonar of protein experts but with gains in chicken and pork exports, resilience in GCC and Turkey, and 19 new licenses. Ingredients and Pet: Segment reported an EBITDA margin of 15%, EUR 126 million in the quarter, with progress in Pet synergies and ingredients market broadening.

• Fourth quarter expected to be promising due to BRF plus progress, price recovery in export portfolio. - Confidence in continued cash generation in fourth quarter due to grain price reduction and efficiency program captures. - BRF plus 2.0 plan established for 2024 focusing on indicator improvement.

• Macroeconomic environment, industry factors may lead to different results than forward-looking statements. - Adverse sonar of protein experts impacting international segment margins. - Currency effects and inventory management challenges in international operations.

Q: Ricardo Alves asks about Brazil's fourth quarter performance and Brazil division margins.

A: Miguel Gularte and Fabio Mariano respond about fourth quarter enthusiasm, BRF plus progress, and margin recovery in processed foods.

Q: Gustavo Troyano asks about cost per ton in Brazil vs international and cash flow.

A: Fabio Mariano explains cost differences due to currency and inventory factors, and cash flow considerations including bond redemption.

Q: Leonardo Alankar asks about grain inventory, Christmas product consumption, international performance, and working capital.

A: Miguel Gularte and Fabio Mariano discuss grain supply, Christmas sales, and international performance prospects.

Q: Isabella Simonato asks about unprocessed foods in Brazil margins and category performance.

A: Miguel Gularte talks about commercial execution, cost reduction, and category performance prospects.

Q: Thiago Duarte asks about sales volumes, BRF plus progress, and asset sales.

A: Miguel Gularte and Fabio Mariano address sales volume improvements, BRF plus progress, and asset sale updates.

Q: Lucas Ferreira asks about price improvement in Asia, Japan, and China.

A: Miguel Gularte discusses price recovery prospects in Asia and market dynamics.