BRF S.A. Company records EBITDA of R$ 1.9 billion, nearly double that of the fourth quarter of 2022, with a margin of 13.2%
São Paulo, February 26, 2023 - BRF, one of the world's largest food companies, reported a net profit of R$ 823 million in the fourth quarter of 2023, excluding the impacts of hyperinflation in Turkey, totaling R$ 68 million, and free cash flow of R$ 613 million. The company presented an EBITDA of R$ 1.9 billion, almost double the amount in 4Q22, achieving a margin of 13.2%. For the year, BRF's fiscal profit was R$ 218.8 million. The results were driven by improved operational performance and the financial discipline of the company, which also contributed to a significant reduction in leverage (2.01x). In the consolidated year, BRF reported an EBITDA of R$ 4.7 billion, a 15% increase compared to 2022 (R$ 4.1 billion), in a year marked by challenges in chicken oversupply.
"Throughout 2023, we remained focused on executing our business plan with excellence, capturing efficiency gains each quarter and closing 4Q23 with cash generation and net profit. We faced a challenging year and made sound decisions, following a well-defined grain strategy and expanding our access to different markets through new authorizations," said Miguel Gularte, CEO of BRF.
The Company's predictive intelligence model, combined with efficiency gains from the BRF+ program, allowed the company to capitalize on the timely sourcing of grains with falling prices, resulting in a significant cost reduction in the second half. The continuous evolution of commercial execution, improved performance across the product portfolio, and the consistency of the Sadia, Perdigão, and Qualy brands supported the profitability growth in Brazil, another highlight of the year.
The efficiency program continued to deliver consistent results, with captures of R$ 525 million in 4Q23, totaling R$ 2.2 billion in 2023. Additionally, the Company recorded the lowest FIFO discount levels in recent years, demonstrating greater integration between production planning and sales. Finished product stocks in the international market were significantly reduced by 77 thousand tons, ending the year with historically low levels of unsold stocks and stocks in ports.
In Brazil, in the fourth quarter, the Company reported an EBITDA margin of 15.6%, higher than the 9.1% recorded in 4Q22. Commercial execution continued to evolve, with an increase in product availability (+4 p.p.) compared to 4T22 and a continuous gain in shelf space share (+3 p.p) vs 4Q22. In 2023, the commercial base grew with 17.5 thousand new customers, reaching over 280 thousand points of sale. Logistic service levels reached record levels, registering a significant improvement in small retail (+8.1 p.p vs 2022). The successful commemorative campaign crowned the period with success, supported by adherence to suggested prices, as well as investments in communication and advertising.
In the International operation, the recovery of the price of fresh protein was responsible for the return of double-digit EBITDA margin (11.1%) this quarter. BRF achieved increased profitability with a significant recovery of prices in all geographies. The GCC region stood out with a gain in processed market share (2.2 p.p vs 2022), in line with the strategy of increasing the volume of value-added items. Market diversification remained consistent with the resumption of exports to the United Kingdom in 4Q23. In total, the company gained 66 new accreditations throughout 2023 for new destinations in Latin America, Asia, Europe, and South Africa. The Sadia and Banvit brands continue to lead the market in Halal.
"The year was marked by the consistency of our financial discipline combined with operational improvement. We strengthened the company's capital structure, reducing net debt by almost R$ 6 billion, resulting in a 1.74x decrease in leverage and ending the year at 2.01x. We presented cash generation in the second half, as planned," highlighted BRF's Vice President of Finance and IR, Fábio Mariano.
The sustainability agenda also achieved important milestones in 2023. BRF remained in the ISE and Efficient Carbon Index (ICO2) portfolios, both organized by B3, and progressed in all five dimensions of ISE, with a focus on Business Model and Innovation. The company reduced total emissions from scope 1 and 2 by 26% compared to the 2019 base year and completed the full mapping of emissions from its supply chain (scope 3). The company continued to invest in employee development, showing improvement in all key indicators such as engagement, absenteeism, and turnover. Safety at work indices stood out with the best historical results, consolidating BRF as a market reference.
"The numbers from the last quarter of 2023 confirm our team's ability to manage with focus and discipline. We enter 2024 motivated by the results achieved and with version 2.0 of BRF+ already underway. We open a new chapter in the company's history with the consolidation of Marfrig as the controlling shareholder with a 50.06% stake, and confident in continuing our journey of evolution with commitment, agility, simplicity, and efficiency," concludes Miguel Gularte.
About BRF
One of the world's largest food companies, BRF, operates in over 120 countries. Its purpose is to provide increasingly tasty and convenient food for people and their pets worldwide through sustainable management of its supply chain, from the field to the table. As the owner of iconic brands such as Sadia, Perdigão, and Qualy, the company aligns its actions with core commitments to safety, quality, and integrity. BRF bases its strategy on a long-term vision, aiming to create value for nearly 100,000 employees worldwide, over 300,000 customers, and approximately 10,000 integrated producers in Brazil, as well as all its shareholders and society.
Press Contact - BRF
imprensa@brf.com
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BRF SA published this content on 26 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 12:53:06 UTC.
