BRF SA Q1 FY2024 earnings call

• BRF+ 2.0 program advancing to level unit indicators, improved specification system and export permits for greater agility. - Better commercial execution in Brazil and predictive grain purchasing model driving growth and profitability. - Sustainability advances: Sustainalytics rating, integrated report with Scope 3 emissions mapping, Good Environmental Practices award. - Capital structure optimized with lowest leverage in 8 years, free cash flow R$844 million, reduced financial cycle to 4.7 days, inventory turnover 75 days. - Engagement survey results improved, 100,000 employees recognized for better performance.

Brazil: Operating result with 51.1% EBITDA margin, processed products profitable in recovering consumer environment, fresh products improved; regular portfolio growth and margins, new products launched in frozen, cold cuts, margarine. International: EBITDA margin increased by 6% vs prior quarter, growth in share and exportation of chicks and poultry meat, halal market performance with new product launches, 25 new export licenses, lowest historic inventories. Ingredients and Fats: 10.7% EBITDA margin, manufacturing yield improvement, new commercial export agreements, ERP integration project, accreditation of Concordia plant.

• BRF+ 2.0 program to continue improving indicators. - Expectation of sustainable performance beyond seasonal effects. - Likely growth in CapEx, focus on reducing debt and returning value to shareholders through dividends and buybacks.

• Macroeconomic environment impacts on results. - External events affecting operational performance. - Logistics challenges in Rio Grande do Sul. - Potential variability in grain costs and international market prices.

Q: About cost in second quarter and international prices, your view?

A: Fabio discusses stable grain costs and positive international price trends, with resilience in second quarter due to portfolio stretching.

Q: About efficiency and idle capacity, your insights?

A: Fabio and Miguel talk about efficiency program captures, internal benchmarking, and utilization of idle capacity for growth.