JBS (JBSAY) 6-K Statements of financial position

Exhibit 99.1

Statements of financial position

In thousands of Brazilian Reais - R$

		Company				Consolidated
	Note	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	3		4,349,547		4,458,670		27,622,165		22,122,405
Margin cash	3		125,788		64,754		912,374		641,283
Trade accounts receivable	4		3,590,711		2,575,423		18,480,150		16,416,149
Inventories	5		4,703,082		4,016,197		29,811,083		24,696,583
Biological assets	6		—		—		8,662,500		8,289,048
Recoverable taxes	7		1,506,549		1,537,885		3,664,552		4,449,734
Derivative assets			9,654		42,746		499,597		425,043
Other current assets			190,695		314,282		1,990,107		1,564,678
TOTAL CURRENT ASSETS			14,476,026		13,009,957		91,642,528		78,604,923
NON-CURRENT ASSETS
Recoverable taxes	7		5,608,724		5,754,089		8,371,242		8,444,560
Biological assets	6		—		—		2,873,067		2,573,041
Related party receivables	8		663,005		1,807,878		590,511		573,955
Deferred income taxes	9		—		—		2,420,046		3,751,335
Derivative assets			—		396,698		—		396,698
Other non-current assets			580,946		568,573		1,772,688		1,545,468
			6,852,675		8,527,238		16,027,554		17,285,057
Investments in equity-accounted investees, associates and joint venture	10		44,106,721		41,640,588		242,498		274,021
Property, plant and equipment	11		13,769,989		13,509,618		67,399,152		62,541,120
Right of use assets	12.1		199,423		135,801		8,884,423		8,257,855
Intangible assets	13		239,396		204,312		10,517,272		9,612,859
Goodwill	14		9,085,970		9,085,970		31,862,245		29,556,234
TOTAL NON-CURRENT ASSETS			74,254,174		73,103,527		134,933,144		127,527,146
TOTAL ASSETS			88,730,200		86,113,484		226,575,672		206,132,069

The accompanying notes are an integral part of these condensed interim financial statements.

1

Statements of financial position

In thousands of Brazilian Reais - R$

		Company						Consolidated
	Note	September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade accounts payable	15		4,507,896			4,468,136			25,523,278			25,450,974
Supply chain finance	15		1,734,217			1,466,235			6,079,902			4,589,870
Loans and financing	16		1,262,087			1,297,393			10,121,300			4,316,360
Income taxes	17		—			—			908,639			403,022
Other taxes payable	17		157,581			238,006			731,561			697,157
Payroll and social charges	18		1,540,386			1,208,139			7,962,100			6,280,042
Lease liabilities	12.2		74,958			62,454			1,886,162			1,707,172
Dividends payable	20.c		4,436,392			160			4,437,007			1,938
Provisions for legal proceedings	19		—			—			1,144,412			955,866
Derivative liabilities			194,594			42,513			553,372			698,361
Other current liabilities			1,526,062			1,230,467			3,041,111			2,813,379
TOTAL CURRENT LIABILITIES			15,434,173			10,013,503			62,388,844			47,914,141
NON-CURRENT LIABILITIES
Loans and financing	16		6,450,172			11,950,708			93,163,983			92,505,465
Income and other taxes payable	17		216,271			232,324			468,023			456,865
Payroll and social charges	18		1,834,164			1,965,664			2,231,445			2,374,674
Lease liabilities	12.2		150,902			88,576			7,765,843			7,206,761
Deferred income taxes	9		2,752,215			3,136,770			6,726,881			6,585,412
Provisions for legal proceedings	19		532,311			559,310			1,477,830			1,529,624
Related party payables	8		14,163,564			14,459,311			—			—
Derivative liabilities			210,244			—			211,400			—
Other non-current liabilities			277,660			356,179			491,281			560,821
TOTAL NON-CURRENT LIABILITIES			26,587,503			32,748,842			112,536,686			111,219,622
EQUITY	20
Share capital - common shares			23,576,206			23,576,206			23,576,206			23,576,206
Capital reserve			(730,052	)		(773,537	)		(730,052	)		(773,537	)
Other reserves			26,222			30,513			26,222			30,513
Profit reserves			15,379,953			15,379,953			15,379,953			15,379,953
Accumulated other comprehensive income			5,684,386			5,138,004			5,684,386			5,138,004
Retained earnings			2,771,809			—			2,771,809			—
Attributable to company shareholders			46,708,524			43,351,139			46,708,524			43,351,139
Attributable to non-controlling interest			—			—			4,941,618			3,647,167
TOTAL EQUITY			46,708,524			43,351,139			51,650,142			46,998,306
TOTAL LIABILITIES AND EQUITY			88,730,200			86,113,484			226,575,672			206,132,069

The accompanying notes are an integral part of these condensed interim financial statements.

2

Statements of income for the nine month period ended September 30, 2024 and 2023

In thousands of Brazilian Reais - R$

		Company						Consolidated
	Note	2024			2023			2024			2023
NET REVENUE	21		44,478,033			37,643,281			300,251,258			267,475,824
Cost of sales	25		(35,867,825	)		(32,102,908	)		(254,870,108	)		(238,921,578	)
GROSS PROFIT			8,610,208			5,540,373			45,381,150			28,554,246
Selling expenses	25		(3,769,441	)		(2,933,304	)		(18,875,402	)		(16,963,953	)
General and administrative expenses	25		(2,266,278	)		(1,905,327	)		(8,128,007	)		(8,107,110	)
Other incomes	25.1		1,825			10,561			316,284			588,084
Other expenses	25.1		(17,305	)		(46,074	)		(577,020	)		(545,174	)
NET OPERATING EXPENSES			(6,051,199	)		(4,874,144	)		(27,264,145	)		(25,028,153	)
OPERATING PROFIT			2,559,009			666,229			18,117,005			3,526,093
Finance income	22		1,040,489			1,140,412			2,706,280			1,719,701
Finance expense	22		(3,992,877	)		(3,340,821	)		(9,564,228	)		(6,780,820	)
FINANCE INCOME (EXPENSE)			(2,952,388	)		(2,200,409	)		(6,857,948	)		(5,061,119	)
Share of profit of equity-accounted investees, net of tax	10		6,837,568			562,736			1,798			49,087
PROFIT (LOSS) BEFORE TAXES			6,444,189			(971,444	)		11,260,855			(1,485,939	)
Current income taxes	9		375,007			(21,391	)		(2,128,380	)		(671,596	)
Deferred income taxes	9		384,555			(150,741	)		(1,106,627	)		1,220,473
TOTAL INCOME TAXES			759,562			(172,132	)		(3,235,007	)		548,877
NET INCOME (LOSS)			7,203,751			(1,143,576	)		8,025,848			(937,062	)
ATTRIBUTABLE TO:
Company shareholders			7,203,751			(1,143,576	)		7,203,751			(1,143,576	)
Non-controlling interest			—			—			822,097			206,514
			7,203,751			(1,143,576	)		8,025,848			(937,062	)
Basic and diluted earnings (losses) per share - common shares (R$)	23		3.25			(0.52	)		3.25			(0.52	)

The accompanying notes are an integral part of these condensed interim financial statements.

3

Statements of income for the three month period ended September 30, 2024 and 2023

In thousands of Brazilian Reais - R$

		Company						Consolidated
	Note	2024			2023			2024			2023
NET REVENUE	21		16,867,098			13,378,517			110,497,857			91,409,464
Cost of sales	25		(13,048,581	)		(11,293,389	)		(92,309,545	)		(80,356,865	)
GROSS PROFIT			3,818,517			2,085,128			18,188,312			11,052,599
Selling expenses	25		(1,399,549	)		(1,068,866	)		(6,751,851	)		(5,509,930	)
General and administrative expenses	25		(661,249	)		(761,135	)		(2,703,855	)		(2,906,942	)
Other incomes	25.1		21			3,413			121,272			87,289
Other expenses	25.1		(6,279	)		(30,352	)		(234,582	)		(112,504	)
NET OPERATING EXPENSES			(2,067,056	)		(1,856,940	)		(9,569,016	)		(8,442,087	)
OPERATING PROFIT			1,751,461			228,188			8,619,296			2,610,512
Finance income	22		303,722			323,736			851,079			602,145
Finance expense	22		(1,116,343	)		(1,154,294	)		(2,853,474	)		(2,441,283	)
FINANCE INCOME (EXPENSE)			(812,621	)		(830,558	)		(2,002,395	)		(1,839,138	)
Share of profit of equity-accounted investees, net of tax			2,740,074			1,215,064			21,611			19,661
PROFIT BEFORE TAXES			3,678,914			612,694			6,638,512			791,035
Current income taxes	9		181,819			(138,192	)		(789,565	)		(478,625	)
Deferred income taxes	9		(18,195	)		98,149			(1,653,270	)		378,196
TOTAL INCOME TAXES			163,624			(40,043	)		(2,442,835	)		(100,429	)
NET INCOME			3,842,538			572,651			4,195,677			690,606
ATTRIBUTABLE TO:
Company shareholders			3,842,538			572,651			3,842,538			572,651
Non-controlling interest			—			—			353,139			117,955
			3,842,538			572,651			4,195,677			690,606
Basic and diluted earnings (loss) per share - common shares (R$)	23		1.73			0.26			1.73			0.26

The accompanying notes are an integral part of these condensed interim financial statements.

4

Statements of comprehensive income for the nine month period ended September 30, 2024 and 2023

In thousands of Brazilian Reais - R$

		Company						Consolidated
	Note	2024			2023			2024			2023
Net income (loss)			7,203,751			(1,143,576	)		8,025,848			(937,062	)
Other comprehensive income
Items that are or may be subsequently reclassified to statement of income:
Gain (loss) on foreign currency translation adjustments			1,526,342			(1,627,483	)		1,998,102			(1,740,085	)
Gain (loss) on net investment in foreign operations			(1,028,507	)		589,207			(1,028,507	)		589,207
Gain on cash flow hedge	26 c3.1		7,830			15,306			7,830			15,306
Deferred income tax on cash flow hedge	26 c3.1		(2,662	)		(5,204	)		(2,662	)		(5,204	)
Valuation adjustments to equity in subsidiaries (1)			16,273			(38,328	)		16,273			(38,328	)
Items that will not be subsequently reclassified to statement of income:
Gain associated with pension and other postretirement benefit obligations			34,816			42,152			40,672			51,100
Income tax on gain associated with pension and other postretirement benefit obligations			(7,710	)		(11,977	)		(7,710	)		(14,784	)
Total other comprehensive income (loss)			546,382			(1,036,327	)		1,023,998			(1,142,788	)
Comprehensive income (loss)			7,750,133			(2,179,903	)		9,049,846			(2,079,850	)
Total comprehensive income (loss) attributable to:
Company shareholders			7,750,133			(2,179,903	)		7,750,133			(2,179,903	)
Non-controlling interest			—			—			1,299,713			100,053
			7,750,133			(2,179,903	)		9,049,846			(2,079,850	)

⁽¹⁾ Primarily relates to foreign currency translation adjustments on conversion of indirect subsidiaries.

The accompanying notes are an integral part of these condensed interim financial statements.

5

Statement of comprehensive income for the three month period ended September 30, 2024 and 2023

In thousands of Brazilian Reais - R$

		Company						Consolidated
	Note	2024			2023			2024			2023
Net income			3,842,538			572,651			4,195,677			690,606
Other comprehensive income (loss)
Items that are or may be subsequently reclassified to profit or loss:
Gain (loss) on foreign currency translation adjustments			883,613			(621,996	)		903,817			(587,072	)
Gain (loss) on net investment in foreign operations			191,413			(336,229	)		191,413			(336,229	)
Gain on cash flow hedge			5,845			30,284			5,845			30,284
Deferred income tax on cash flow hedge			(1,987	)		(10,297	)		(1,987	)		(10,297	)
Valuation adjustments to equity in subsidiaries (1)			2,874			(17,605	)		2,874			(17,605	)
Items that will not be subsequently reclassified to profit or loss:
Loss associated with pension and other postretirement benefit obligations			(10,391	)		(3,368	)		(12,382	)		(3,676	)
Income tax on gain (loss) associated with pension and other postretirement benefit obligations			1,442			(6,339	)		3,432			(6,339	)
Total other comprehensive income (loss)			1,072,809			(965,550	)		1,093,012			(930,934	)
Comprehensive income (loss)			4,915,347			(392,899	)		5,288,689			(240,328	)
Total comprehensive income (loss) attributable to:
Company shareholders			4,915,347			(392,899	)		4,915,347			(392,899	)
Non-controlling interest			—			—			373,342			152,571
			4,915,347			(392,899	)		5,288,689			(240,328	)

⁽¹⁾ Primarily relates to foreign currency translation adjustments on conversion of indirect subsidiaries.

The accompanying notes are an integral part of these condensed interim financial statements.

6

Statements of changes in equity for the nine month period ended September 30, 2024 and 2023

In thousands of Brazilian Reais - R$

			Capital reserves						Profit reserves			Other comprehensive income
	Note	Share capital	Premium on issue of shares	Capital transaction (1)		Stock options	Other reserves		Legal	Investments statutory	Tax incentive	VAE		FCTA		Retained (loss) earnings		Total		Non-controlling interest		Total equity
BALANCE ON DECEMBER 31, 2022		23,576,206	211,879	(1,050,298	)	30,464	36,497		2,801,185	11,848,048	4,003,823	174,904		4,711,458		—		46,344,166		3,464,765		49,808,931
Net income		—	—	—		—	—		—	—	—	—		—		(1,143,576	)	(1,143,576	)	206,514		(937,062	)
Foreign currency translation adjustments		—	—	—		—	—		—	—	—	—		(1,627,483	)	—		(1,627,483	)	(112,602	)	(1,740,085	)
Gain on net investment in foreign operations		—	—	—		—	—		—	—	—	—		589,207		—		589,207		—		589,207
Losses on cash flow hedge, net of tax		—	—	—		—	—		—	—	—	10,102		—		—		10,102		—		10,102
Other comprehensive results VAE		—	—	—		—	—		—	—	—	(38,328	)	—		—		(38,328	)	—		(38,328	)
Losses associated with pension and other postretirement benefit obligations, net of tax		—	—	—		—	—		—	—	—	30,175		—		—		30,175		6,141		36,316
Total comprehensive income		—	—	—		—	—		—	—	—	1,949		(1,038,276	)	(1,143,576	)	(2,179,903	)	100,053		(2,079,850	)
Share-based compensation		—	—	26,311		—	—		—	—	—	—		—		—		26,311		5,019		31,330
Realization of other reserves		—	—	—		—	(4,522	)	—	—	—	—		—		4,522		—		—		—
Distribution of interim dividends		—	—	—		—	—		—	—	—	—		—		(2,218,116	)	(2,218,116	)	—		(2,218,116	)
Dividend to non-controlling		—	—	—		—	—		—	—	—	—		—		—		—		(23,602	)	(23,602	)
Others		—	—	—		—	—		—	—	—	—		—		—		—		(392	)	(392	)
SEPTEMBER 30, 2023		23,576,206	211,879	(1,023,987	)	30,464	31,975		2,801,185	11,848,048	4,003,823	176,853		3,673,182		(3,357,170	)	41,972,458		3,545,843		45,518,301
DECEMBER 31, 2023		23,576,206	211,879	(1,015,880	)	30,464	30,513		2,801,185	8,477,409	4,101,359	168,866		4,969,138		—		43,351,139		3,647,167		46,998,306
Net income (loss)		—	—	—		—	—		—	—	—	—		—		7,203,751		7,203,751		822,097		8,025,848
Foreign currency translation adjustments		—	—	—		—	—		—	—	—	—		1,526,342		—		1,526,342		471,760		1,998,102
Gain on net investment in foreign operations (2)		—	—	—		—	—		—	—	—	—		(1,028,507	)	—		(1,028,507	)	—		(1,028,507	)
Losses on cash flow hedge, net of tax	26 c3.1	—	—	—		—	—		—	—	—	5,168		—		—		5,168		—		5,168
Gain associated with pension and other postretirement benefit obligations, net of tax		—	—	—		—	—		—	—	—	27,106		—		—		27,106		5,856		32,962
Other comprehensive results VAE		—	—	—		—	—		—	—	—	16,273		—		—		16,273		—		16,273
Total comprehensive income		—	—	—		—	—		—	—	—	48,547		497,835		7,203,751		7,750,133		1,299,713		9,049,846
Share-based compensation		—	—	43,485		—	—		—	—	—	—		—		—		43,485		8,784		52,269
Realization of other reserves		—	—	—		—	(4,291	)	—	—	—	—		—		4,291		—		—		—
Distribution of interim dividends	20.c	—	—	—		—	—		—	—	—	—		—		(4,436,233	)	(4,436,233	)			(4,436,233	)
Dividend to non-controlling		—	—	—		—	—		—	—	—	—		—		—		—		(16,017	)	(16,017	)
Others		—	—	—		—	—		—	—	—	—		—		—		—		1,971		1,971
SEPTEMBER 30, 2024		23,576,206	211,879	(972,395	)	30,464	26,222		2,801,185	8,477,409	4,101,359	217,413		5,466,973		2,771,809		46,708,524		4,941,618		51,650,142

⁽¹⁾ Refers to changes in the equity of investees arising from PPC’s share repurchase and share-based compensation.

⁽²⁾ Refers to the net investment on foreign operations of intercompany balances between JBS S.A. and its indirect subsidiaries JBS Luxembourg S.à.r.l. and JBS Investments Luxembourg S.à.r.l.. Thus, since the balances are an extension of that entity’s investment, they are considered as equity instruments.

The accompanying notes are an integral part of these condensed interim financial statements.

7

Statements of cash flows for the nine month period ended September 30, 2024 and 2023

In thousands of Brazilian Reais - R$

			Company						Consolidated
	Notes		2024			2023			2024			2023
Cash flows from operating activities
Net income (loss)				7,203,751			(1,143,576	)		8,025,848			(937,062	)
Adjustments for:
Depreciation and amortization		6, 12, 13 e 14		721,994			639,286			8,557,129			7,865,984
Expected credit losses		4		35,426			35,454			47,326			49,075
Share of profit of equity-accounted investees		10		(6,837,568	)		(562,736	)		(1,798	)		(49,087	)
(Gain) Loss on sales of assets				(28,014	)		13,695			(22,593	)		(32,886	)
Tax expense (benefit)		9		(759,562	)		172,132			3,235,007			(548,877	)
Net finance income/expense		22		2,952,388			2,200,409			6,857,948			5,061,119
Share-based compensation				—			—			52,269			31,330
Provisions for legal proceedings		19		83,368			182,064			161,995			429,710
Net realizable value inventory adjustments		5		(6,116	)		(24,560	)		55,707			(87,880	)
Antitrust agreements		19		—			—			421,449			211,536
Loss due to adjustment to recoverable value				—			—			143,287			127,889
Fair value adjustment for biological assets				—			—			(269,941	)		419,255
				3,365,667			1,512,168			27,263,633			12,540,106
Changes in assets and liabilities:
Trade accounts receivable				(721,236	)		2,002,395			246,069			3,346,138
Inventories				(680,768	)		572,148			(3,031,027	)		811,024
Recoverable taxes				200,891			(103,050	)		83,331			115,357
Other current and non-current assets				113,345			(31,356	)		(464,728	)		(410,617	)
Biological assets				—			—			(1,886,598	)		(1,888,893	)
Trade accounts payable and supply chain finance				(83,999	)		(1,049,485	)		(1,321,273	)		(5,411,013	)
Taxes paid in installments				(251,823	)		(143,443	)		(251,823	)		(143,443	)
Other current and non-current liabilities				681,527			1,020,843			667,425			135,134
Antitrust agreements payment				—			—			(313,984	)		(442,854	)
Income taxes paid				—			—			(1,010,646	)		(121,425	)
Changes in operating assets and liabilities				(742,063	)		2,268,052			(7,283,254	)		(4,010,592	)
Cash provided by operating activities				2,623,604			3,780,220			19,980,379			8,529,514
Interest paid				(2,179,970	)		(1,004,321	)		(6,211,818	)		(4,554,913	)
Interest received				155,889			165,465			791,565			652,936
Net cash flows provided by operating activities				599,523			2,941,364			14,560,126			4,627,537
Cash flow from investing activities
Purchases of property, plant and equipment				(990,067	)		(600,376	)		(4,989,429	)		(5,501,456	)
Proceeds from sale of property, plant and equipment				58,689			10,194			135,852			96,327
Proceeds of intangible assets		13		(8,925	)		(14,341	)		(31,637	)		(33,012	)
Additional investments in equity-accounted investees				(2,882,452	)		(9,934	)		—			—
Acquisitions/ incorporations, net of cash acquired				—			680			(22,060	)		(9,939	)
Dividends received		10		45,079			32,500			45,079			32,500
Related party transactions				8,031,473			(6,586,812	)		3,511			3,897
Other				—			—			—			102,511
Cash provided by (used in) investing activities				4,253,797			(7,168,089	)		(4,858,684	)		(5,309,172	)
Cash flow from financing activities
Proceeds from loans and financings				2,847,396			13,204,373			11,039,202			40,047,077
Payments of loans and financings				(7,726,273	)		(8,975,510	)		(13,881,162	)		(21,810,707	)
Derivatives instruments received/settled				(422,705	)		(181,348	)		(908,596	)		(104,117	)
Margin cash withdraw/(applied in)				(61,034	)		12,123			(10,511	)		(6,098	)
Dividends paid		20.b2		—			(2,218,116	)		—			(2,218,116	)
Dividends paid to non-controlling interest				—			—			(16,017	)		(23,602	)
Capital reduction of controlled companies				—			13,184,553			—			—
Payments of leasing contracts				(63,083	)		(34,588	)		(1,644,232	)		(1,595,295	)
Cash provided by (used in) financing activities				(5,425,699	)		14,991,487			(5,421,316	)		14,289,142
Effect of exchange rate changes on cash and cash equivalents				463,256			251,511			1,219,634			159
Net change in cash and cash equivalents				(109,123	)		11,016,273			5,499,760			13,607,666
Cash and cash equivalents beginning of period				4,458,670			2,096,334			22,122,405			13,182,158
Cash and cash equivalents at the end of period				4,349,547			13,112,607			27,622,165			26,789,824

Non-cash transactions:
			Company						Consolidated
	Notes		2024			2023			2024		2023
Non-cash additions to right of use assets and lease liabilities		12		150,027			60,815			1,727,597		2,105,268
Capitalized interests		11		29,299			(86,837	)		136,434		(284,894	)
Capital reduction with debt settlement (1)				(8,827,182	)		—			—		—
Closing of works for fixed assets				65,365			—			65,365		—

⁽¹⁾ Refers to the settlement through capital reduction of the transfer of the current account between the indirect parent company of Seara Alimentos Ltda. to its parent company Seara Holding Ltda.

The accompanying notes are an integral part of these condensed interim financial statements.

8

Statements of economic value added the nine month period ended September 30, 2024 and 2022

In thousands of Brazilian Reais - R$

	Company						Consolidated
	2024			2023			2024			2023
Revenue
Sales of goods and services		45,325,526			38,386,005			303,393,969			270,271,487
Other income (expense)		(11,649	)		(21,417	)		46,228			183,679
Expected credit losses		(35,426	)		(35,454	)		(47,326	)		(49,075	)
		45,278,451			38,329,134			303,392,871			270,406,091
Goods
Cost of services and goods sold		(31,326,252	)		(28,808,820	)		(181,112,629	)		(172,121,346	)
Materials, energy, services from third parties and others		(6,425,505	)		(5,245,480	)		(52,935,218	)		(50,026,971	)
		(37,751,757	)		(34,054,300	)		(234,047,847	)		(222,148,317	)
Gross added value		7,526,694			4,274,834			69,345,024			48,257,774
Depreciation and Amortization		(721,994	)		(639,286	)		(8,557,129	)		(7,865,984	)
Net added value generated		6,804,700			3,635,548			60,787,895			40,391,790
Net added value by transfer
Share of profit of equity-accounted investees, net of tax		6,837,568			562,736			1,798			49,087
Financial income		1,040,489			1,140,412			2,706,280			1,719,701
Others		18,506			11,412			(241,948	)		(77,783	)
		7,896,563			1,714,560			2,466,130			1,691,005
NET ADDED VALUE TOTAL TO DISTRIBUTION		14,701,263			5,350,108			63,254,025			42,082,795
DISTRIBUTION OF ADDED VALUE
Labor
Salaries		3,424,325			2,084,221			32,037,541			26,907,939
Benefits		409,634			352,890			6,465,088			5,493,124
FGTS (Brazilian Labor Social Charge)		27,763			145,261			305,389			391,677
		3,861,722			2,582,372			38,808,018			32,792,740
Taxes and contribution
Federal		(1,471,327	)		49,391			3,188,201			206,151
State		1,103,125			499,192			2,555,813			1,653,479
Municipal		27,241			17,758			28,268			18,905
		(340,961	)		566,341			5,772,282			1,878,535
Capital Remuneration from third parties
Interests and exchange variation		3,758,709			3,221,562			9,210,359			6,571,557
Rents		31,716			33,629			808,866			576,511
Others		186,326			89,780			628,652			1,200,514
		3,976,751			3,344,971			10,647,877			8,348,582
Owned capital remuneration
Net income (loss) attributable to company shareholders		7,203,751			(1,143,576	)		7,203,751			(1,143,576	)
Non-controlling interest		—			—			822,097			206,514
		7,203,751			(1,143,576	)		8,025,848			(937,062	)
ADDED VALUE TOTAL DISTRIBUTED		14,701,263			5,350,108			63,254,025			42,082,795

The accompanying notes are an integral part of these condensed interim financial statements.

 

9

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023
(Expressed in thousands of Brazilian reais)

1 Background Information

JBS S.A (“JBS” or the “Company”), is a corporation with its headquarters office in Brazil, in the City of São Paulo, and is controlled by J&F Investimentos S.A. The Company has its shares publicly traded and listed on the “Novo Mercado” segment of the São Paulo Stock Exchange (B3 - Bolsa de Valores, Mercadorias & Futuros) under the ticker symbol “JBSS3”. In addition, American Depository Receipts related to shares issued by JBS are also publicly traded in the United States of America under the symbol “JBSAY”. These individual and consolidated financial statements comprise the Company and its subsidiaries (collectively, the ‘Company’) for the period ended September 30, 2024 and were authorized by the Board of Directors on November 13, 2024.

The financial statements presented below include, in addition to the individual operations of JBS in Brazil, the activities of its subsidiaries, in Brazil and abroad.

1.1 Main operating events that occurred during the period:

1.1.1  Newcastle disease virus (NDV): On July 19, 2024, following the announcement of an outbreak of Newcastle disease virus at a poultry farm in Rio Grande do Sul, the Brazilian government announced the suspension of poultry exports from this state to various countries. In response, the indirect subsidiary Seara adjusted its production to export from other states, thereby avoiding significant impacts on operations.

1.1.2 Distribution of interim dividends: On August 13, 2024, the Company approved the distribution of interim dividends from the profit reserves in the amount of US$799,983 (equivalent to R$4.4 billion considering the exchange rate on September 30, 2024), corresponding to R$2.00 (equivalent to US$0.36 considering the exchange rate on August 13, 2024) per ordinary share on June 30, 2024, to be distributed to the shareholders. The interim dividends was distributed on October 7, 2024.

1.1.3 Agribusiness receivables certificates offering: On August 28, 2024, an offering of three series of Agribusiness Receivables Certificates (Certificados de Recebíveis do Agronegócio - CRAs) due in 2029, 2034, and 2044, respectively, were issued by Seara, an indirect subsidiary, guaranteed by JBS S.A., with an aggregate principal amount of up to US$275.8 million (equivalent to R$1.5 billion, based on the exchange rate on September 30, 2024). The offering was settled on October 3, 2024.

1.1.4 Share buyback program: On September 23, 2024, JBS S.A.’s board of directors approved a new share buyback program, pursuant to which JBS S.A. may acquire up to 113,396,357 of its outstanding common shares, representing up to approximately 5% of JBS S.A. total issued and outstanding share capital, on the B3 at prevailing market prices, during a period of 18 months from September 23, 2024. The Share Buyback Program will not affect the number of shares owned by our ultimate controlling shareholders.

1.1.5 Early redemption of Agribusiness Credit Receivable Certificates (CRA): On September 30 2024, JBS S.A. exercised the early redemption provisions of the debentures underlying three series of outstanding CRAs due 2027, 2030 and 2031, respectively (including all of the remaining outstanding series with financial covenants), which resulted in the total repayment of the related CRAs on September 30, 2024 in the aggregate amount of US$721 million (equivalent to R$3.9 billion, considering the exchange rate as of September 30, 2024).

1.1.6 Floods in Rio Grande do Sul: Regarding the floods that began on April 27, 2024, a total amount of US$19 million was recorded as administrative expenses during the nine month-period ended September 30, 2024 (US$13 million during the three-month period ended September 30, 2024). This amount relates to losses of goods, live animals, inventory, and operational costs due to flooding and logistical disruptions in the region.

1.2 Seasonality

Demand for chicken is relatively stable throughout the year in the United States, Europe and Brazil, but there are seasonal variations in the sales volume of some specific products at certain times of the year, such as: Christmas, New Year and Easter. Demand in the United States beef industry is highest in the second and third quarters, due to favorable weather conditions for outdoor activities. In Australia, the beef industry faces a drop in slaughter in the fourth quarter, as the rainy season affects cattle’s availability and transport. In Brazil, beef sales do not fluctuate significantly during the year. The pork industry in The United States and Australia have peaks in demand in the first and fourth quarters, due to the supply of pork and the holidays, which stimulate the consumption of certain pork products, with no fluctuation in pork numbers in other locations.

 

10

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

1.3 Subsequent events

Debt registration with the Securities Exchange Commission (SEC): On October 25, 2024, following the declaration of effectiveness by the United States Securities and Exchange Commission (SEC), the Company announced commencement of the acceptance period. for the Exchange Offer of the 13 existing series of debt securities (“Old Bonds”), unregistered with the SEC, for new registered debt securities (“New Bonds”). The offer was filed with the SEC on August 25, 2024, and will expire on November 25, 2024.

Distribution of interim dividends: On November 13, 2024, the Company approved the distribution of interim dividends referring to the profit reserves in the amount of R$2.22 billion, corresponding to R$1.00 per ordinary share. The interim dividends will be distributed on January 15, 2025.

2 Basis of preparation and presentation of financial statements

The financial statements were prepared in accordance with the standard CPC 21 (R1) - Interim Statements, approved by the Brazilian Accounting Standards Committee and equivalent to International Accounting Standard “IAS” 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB). Therefore, these Interim Condensed Financial Statements as of September 30, 2024 do not include all footnotes and information required to be considered “complete financial statements” due to redundancy in relation to what is presented in the individual and consolidated annual financial statements (December 31, 2023) prepared in accordance with the accounting practices adopted in Brazil (BRGAAP) and with International Financial Reporting Standards (IFRS), approved by the Board of Directors on August 13, 2024. The parent company’s individual financial statements are identified as “Company” and the consolidated financial statements are identified as “Consolidated”.

2.1 Functional and presentation currency

These condensed interim financial statements are presented in Brazilian reais (R$), which is the Company’s presentation and functional currency. All financial information is presented in thousands of reais, except when indicated otherwise.

2.2 New standards, amendments and interpretations

a. Standards, amendments and interpretations recently issued and adopted by the Company

IAS 1/CPC 26 – Presentation of financial statements

The amendments issued in 2020 and 2023 aim to clarify the requirements for determining whether a liability is current or non-current and require new disclosures for non-currents liabilities that are subject to future covenants. The amendments apply to annual periods beginning on or after January 1, 2024. The Company is monitoring the amendments and has not identified any impacts as a result of this amendment.

IAS 7/CPC 26 and IFRS 7/CPC 40 – Supplier financing agreements (“Risk Withdrawn”)

Effective for periods beginning on or after January 1, 2024 but not required for any interim period presented within the annual reporting period, the changes aim to increase transparency and comparability of financial information in supplier finance arrangements, which involve financing suppliers through a financial institution. Companies will be required to disclose the terms and conditions of transactions with suppliers, the effects of these arrangements on liabilities and cash flows, and on the exposure to liquidity risk related to these arrangements. The Group is monitoring the changes and will adjust the disclosure in the explanatory notes according to the standard’s requirements by the year-end’s financial statements.

b. New standards, amendments and interpretations that are not yet effective

IAS 21/CPC 02 – IAS 21/CPC 02 – Effect of changes in exchange rates and conversion of financial statements

Starting from January 1, 2025, this amendment establishes accounting requirements for situations where a functional currency cannot be converted into other currencies. In such cases, the Group must use the most recent observable exchange rate to translate the results and financial position of foreign operations into its presentation currency. The entity should also disclose this exchange rate, the date it was observed, and the reasons why the currency is non-exchangeable. The Group is monitoring the changes, and so far, no impacts have been identified.

11

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023
(Expressed in thousands of Brazilian reais)

3 Cash, cash equivalents and margin cash

	Company				Consolidated
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Cash on hand and at banks		3,182,986		531,461		12,201,061		8,863,520
CDB (bank certificates of deposit) and National Treasury Bill (Tesouro Selic) (1)		1,166,561		3,927,209		15,421,104		13,258,885
Cash and cash equivalents total		4,349,547		4,458,670		27,622,165		22,122,405
Margin cash		—		—		588,435		88,068
Investments in Treasury bills		125,788		64,754		323,939		553,215
Margin cash total		125,788		64,754		912,374		641,283
Total		4,475,335		4,523,424		28,534,539		22,763,688

⁽¹⁾ CDBs are held at high quality financial institutions and earn interest based on floating rates and are pegged to the Brazilian overnight interbank lending rate (Certificado de Depósito Interbancário - CDI). Tesouro Selic are bonds purchased from financial institutions having conditions and characteristics that are similar to CDB’s.

At September 30, 2024, the availability under Brasil revolving credit facilities was US$450 million (R$2.5 billion at September 30, 2024) and US$450 million (R$2.18 billion at December 31, 2023). In the United States the revolving credit facilities at September 30, 2024, was US$2.9 billion (R$15.8 billion at September 30, 2024) and US$2.9 billion (R$14 billion at December 31, 2023).

4 Trade accounts receivable

	Company						Consolidated
	September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
Current receivables:
Domestic sales		1,221,618			746,465			10,357,580			9,296,795
Foreign sales		1,953,974			1,626,049			5,115,901			4,127,529
Subtotal		3,175,592			2,372,514			15,473,481			13,424,324
Overdue receivables:
From 1 to 30 days		234,078			155,627			2,201,031			1,925,636
From 31 to 60 days		46,576			50,765			275,832			451,089
From 61 to 90 days		22,552			6,018			132,529			142,768
Above 90 days		414,326			233,938			908,037			911,619
Expected credit losses		(290,202	)		(232,988	)		(485,608	)		(411,088	)
Present value adjustment		(12,211	)		(10,451	)		(25,152	)		(28,199	)
Subtotal		415,119			202,909			3,006,669			2,991,825
Trade accounts receivable, net		3,590,711			2,575,423			18,480,150			16,416,149

12

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023
(Expressed in thousands of Brazilian reais)

Present value adjustment: The Company discounts its receivables to present value using interest rates directly related to customer credit profiles. The monthly interest rate used to calculate the present value of outstanding receivables on September 30, 2024 was 0.47% per transaction (1.8% per transaction at December 31, 2023).The present value adjustment is recognized as an offset to sales of products and services.

The Company and its subsidiaries enter into credit assignment transactions with financial institutions, where these institutions acquire trade accounts receivable balances held against certain third-party customers in the domestic and foreign markets. The terms of the assignment transactions result in a permanent transfer of the risks and benefits to the financial institutions.

	Company						Consolidated
Changes in expected credit losses:	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Initial balance		(232,988	)		(252,719	)		(411,088	)		(431,170	)
Additions		(35,426	)		(35,454	)		(47,326	)		(49,075	)
Write-offs/ reversals		11,956			36,041			32,790			50,456
Exchange rate variation		(33,744	)		7,461			(59,984	)		10,845
Closing balance		(290,202	)		(244,671	)		(485,608	)		(418,944	)

5 Inventories

	Company				Consolidated
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Finished products		3,098,040		2,514,584		18,524,966		14,990,882
Work in process		651,221		673,840		2,829,644		2,837,178
Raw materials		613,089		523,377		4,640,840		3,674,716
Supplies		340,732		304,396		3,815,633		3,193,807
		4,703,082		4,016,197		29,811,083		24,696,583

During the nine months ended September 30, 2024 and 2023, the Company recognized the net realizable value of inventories, whose additions, reversals and write-offs were recorded in cost of goods sold, in the amounts of R$6,116 and R$24,560, respectively, in the Parent Company, and (R$55,707) and R$87,880, respectively, in the Consolidated.

6 Biological assets

	Consolidated
	Current						Non-current
Changes in biological assets:	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Initial balance		8,289,048			9,710,693			2,573,041			2,619,066
Business combination		—			(127,014	)		—			—
Increase by reproduction (born) and cost to reach maturity		41,605,218			47,459,516			5,471,308			3,098,991
Reduction for slaughter, sale or consumption		(47,557,586	)		(50,770,468	)		(277,767	)		(238,184	)
Purchase		1,700,208			1,666,769			945,217			672,269
Fair value adjustments		270,521			(419,255	)		(580	)		—
Reclassification from non-current to current		3,689,327			1,154,996			(3,689,327	)		(1,154,996	)
Exchange rate variation		665,764			(268,487	)		200,824			(87,794	)
Amortization		—			—			(2,349,649	)		(2,229,509	)
Closing balance		8,662,500			8,406,750			2,873,067			2,679,843

 

13

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023
(Expressed in thousands of Brazilian reais)

7 Recoverable taxes

	Company				Consolidated
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Value-added tax on sales and services - ICMS/IVA/VAT/GST		770,305		1,128,414		4,363,918		4,452,222
Social contribution on billings - PIS and COFINS		1,528,087		1,751,100		2,245,332		2,432,254
Withholding income tax - IRRF/IRPJ		4,744,111		4,333,343		5,217,754		5,792,623
Excise tax - IPI		18,494		22,645		102,442		106,528
Reintegra		29,879		29,904		44,318		43,111
Other		24,397		26,568		62,030		67,556
		7,115,273		7,291,974		12,035,794		12,894,294
Current Asset		1,506,549		1,537,885		3,664,552		4,449,734
Non-current Asset		5,608,724		5,754,089		8,371,242		8,444,560
		7,115,273		7,291,974		12,035,794		12,894,294

8 Related parties transactions

The main balances of assets and liabilities, as well as the transactions resulting in income (loss) for any period, arise from transactions between related parties at market conditions and prices. Amounts charged include borrowing costs, interest and rate differences, when applicable. The following table includes balances and the net effect on income of intercompany financing transactions between the Company and its subsidiaries:

	Company						Consolidated
	September 30, 2024			December 31, 2023			September 30, 2024		December 31, 2023
Related party receivables		663,005			1,807,878			590,511		573,955
Related party payables		(14,163,564	)		(14,459,311	)		—		—
		(13,500,559	)		(12,651,433	)		590,511		573,955

14

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023
(Expressed in thousands of Brazilian reais)

		Transference of costs	Statement of financial position accounts						Financial income (expense)
	Currency	(administrative and funding)	September 30, 2024			December 31, 2023			September 30, 2024			September 30, 2023
8.1 Company
a) Direct subsidiaries
- JBS Investments Luxembourg S.à.r.l (1)	US$	2.52% to 6.09% p.y.		(9,863,945	)		(8,057,016	)		(222,086	)		(176,428	)
- JBS Confinamento Ltda.	R$	CDI + 1% p.y.		22,982			(3,784	)		(759	)		14,598
- JBS Embalagens Metálicas Ltda	R$	CDI + 1% p.y.		2,143			54			125			3
- Brazservice Ltda.	R$	CDI + 1% p.y.		—			—			—			1,546
- Enersea Ltda.	R$	CDI + 1% p.y.		—			—			—			4
b) Indirect subsidiaries
- Seara Holding Ltda. (2)	R$	—		—			(6,398,511	)		—			—
- JBS Luxembourg S.à.r.l	US$	1.83% to 7.3%  p.y.		—			—			—			(74,948	)
- Seara Alimentos Ltda.	R$	CDI + 1% p.y.		(4,299,619	)		1,224,227			(117,089	)		(663,460	)
- JBS Leather Paraguay Srl	GUA	7.00%  p.y.		10,449			9,642			347			337
- JBS Leather Argentina S.A.U.	US$	-		36,920			—						—
8.2 Consolidated
a) Other related parties
- J&F Investimentos S.A. (3)	R$	IPCA		590,511			570,936			16,225			10,189
- J&F Oklahoma Holdings, Inc.	R$	3.4%		—			—			—			5,690
- Flora Produtos de Higiene e Limpeza S.A.	R$	Selic		—			3,019			73			—
Total				(13,500,559	)		(12,651,433	)		(323,164	)		(882,469	)

⁽¹⁾ Refers to the balance of export prepayment (PPE) receivable from the direct subsidiary JBS Investments Luxembourg S.à.r.l.

⁽²⁾ Refers to the settlement through capital reduction of the transfer of the current account between the indirect controlling company of Seara Alimentos Ltda to its controlling company Seara Holding Ltda.

⁽³⁾ Refers to the agreement entered into between JBS S.A. and J&F Investimentos S.A. and some former executives of the Company, which represents the definitive termination of the dispute subject to Arbitration Process CAM No. 186/21, by which J&F undertook to settle in accordance with the terms and conditions specified in the agreement.

The transactions above refer to working capital funding. Settlement in the future shall be through a capital contribution/ capital reduction or dividends distribution.

15

 

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023
(Expressed in thousands of Brazilian reais)  

The disclosure of significant intercompany commercial transactions is in accordance with the criteria established by Management, by disclosing individual balances which are equal to or higher than 2% of the total of each transaction (sale of products, purchases, accounts receivable and accounts payable). Additionally, transactions which are below the described criteria will be disclosed if the information is relevant. This analysis is performed for each related party. If any related party has not met this criteria in the past but does in the current period, the comparative balance will be disclosed.

	Accounts receivable				Accounts payable				Purchases/Services rendered				Sale of products/Services provided
COMPANY	September 30, 2024		December 31, 2023		September 30, 2024		December  31, 2023		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Direct subsidiaries
JBS Confinamento Ltda.		2,560		2,138		43,600		28,021		41,554		547,567		2,054		9,350
JBS Toledo N.V.		43,168		11,096		—		—		—		—		260,713		245,651
JBS Chile Limitada		38,475		20,820		—		318		1,111		6,037		84,339		85,283
Brazservice Ltda.		—		—		—		—		—		39,878		—		16,704
Conceria Priante Srl		27,899		20,443		—		—		—		—		65,097		14,006
Indirect subsidiaries
Seara Alimentos Ltda.		175,913		228,076		47,009		52,593		196,251		166,153		1,899,447		1,851,243
JBS Global UK Limited		142,199		105,667		—		—		—		—		349,187		356,172
JBS Aves Ltda.		5,120		5,658		21,030		20,900		4,315		2,168		92,037		101,617
Weddel Limited		16,648		5,497		—		—		—		—		40,948		61,545
Sampco, LLC		133,162		96,505		—		—		—		—		509,505		642,742
Meat Snacks Partners do Brasil Ltda.		23,936		16,255		—		—		15		—		363,753		265,395
JBS Asia Limited		—		—		292,988		266,286		320,003		142,662		—		—
JBS Leather Asia Limited		137,550		69,532		—		—		—		—		415,098		238,869
JBS USA Holding Lux S.à.r.l.		273,336		260,857		—		—		65		20		1,029,551		645,808
Seara Comércio de Alimentos Ltda.		4,517		2,197		3,082		3,859		34,691		20,448		18,997		12,955
JBS Australia Pty.Ltd.		4,621		3,096		—		—		808		—		109,654		160,907
Zenda Leather Uruguay S.A		—		—		—		—		—		33		—		27,336
Swift Beef Company		—		—		—		—		—		1,321		—		—
Other related parties
Agropecuária Santa Luzia Ltda.		—		59		37,463		122		135,445		15,543		34		3,878
JBJ Agropecuária Ltda.		2,140		4,252		7,056		1,941		1,082,670		1,313,154		23,177		17,330
Flora Produtos de Higiene e Limpeza S.A		45,673		33,536		—		2		709		11		259,751		244,815
Eldorado Brasil Celulose S.A.		274		246		—		—		—		59		1,788		2,561
Banco Original S.A		4		34		—		—		—		—		46		54
Prima Foods S.A.		175		506		826		2,047		7,576		49,706		2,184		2,520
Agropecuaria Nelore Parana Ltda		—		—		—		3,870		—		—		—		—
JBS Australia Pty Limited		—		—		—		—		—
Guiabolso Pagamentos Ltda		10		—		11,422		—		160,493		—		79		—
		1,077,380		886,470		464,476		379,959		1,985,706		2,304,760		5,527,439		5,006,741

16

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023
(Expressed in thousands of Brazilian reais)  

Other financial transactions in the Company

The Company and a few of its subsidiaries entered into an agreement in which Banco Original, acquires trade accounts receivables held against certain of the Company’s customers in the domestic and foreign markets. The assignments are measured at market value through a permanent transfer of the risks and benefits to Banco Original of all trade accounts receivable. At September 30, 2024, the unpaid balance of transferred receivables was R$3,249,342 (R$2,664,506 at December 31, 2023) in the Company, and R$6,236,166 (R$5,158,611 at December 31, 2023) in the Consolidated, respectively. For the nine month period ended September 30, 2024, the Company incurred financial costs related to this operation in the amount of R$242,649 (R$164,405 at September 30, 2023) in the Company, and R$509,760 (R$350,287 at September 30, 2023) in the Consolidated, respectively, recognized in these interim financial statements as financial expenses.

At September 30, 2024, the Company and a few of its subsidiaries hold investments with Banco Original, in the amount of R$931,630 (R$1,482,874 at December 31, 2023) in the Company and R$3,733,828 (R$3,783,589 at December 31, 2023) in the Consolidated, recognized as cash and cash equivalents, respectively. The short term investments, CDB and similar investments have earnings similar to CDI (Certificado de Depósito Interbancário), according to both maturity and amount established at the start date of the investment, following market practices. For the nine month period ended September 30, 2024, the Company earned interest from these investments in the amount of R$35,117 (R$6,764 at September 30, 2023) in the Company, and R$134,129 (R$69,257 at September 30, 2023) in the Consolidated, respectively, recognized in these interim financial statements as financial income.

The Company enters into future delivery agreements for livestock with certain suppliers, including the JBJ Agropecuária Ltda.(“JBJ”), ensuring a fixed price when purchasing cattle without a cash impact in the Company until the maturity date of these commitments. Based on this contract of future delivery, JBJ already anticipated with the financial institutions in the supply chain finance modality. At September 30, 2024 the balance of this transaction was R$280,500 (R$299,800 at December 31, 2023).

The Company purchases residues generated from cattle slaughter for rendering operations with Prima Foods S.A.

The Company sponsor´s a youth-directed business school, whose mission is to educate future leaders by offering free, high-quality education. During the nine month period ended September 30, 2024 the Company made donations in the amount of R$81,895 (R$76,723 at September 30, 2023) recognized in these interim financial statements as general and administrative expenses.

The Company is a member of the JBS Pela Amazônia Fund, a non-profit association whose objective is to promote and finance initiatives and projects aimed at the sustainable development of the Amazon Biome. In the nine month period ended September 30, 2024, the Company made donations in the amount of R$11,500 recorded in the interim financial statements as administrative expenses.

The Company includes the related party Original Corporate Corretora de Seguros Ltda. on the bid for insurance renewal. If hired, the contracts are carried out at market value.

No expected credit losses or bad debts relating to related party transactions were recorded during the nine month period ended September 30, 2024 and 2023.

Remuneration of key management

The Company’s key management is comprised of its Executive Officers and Board of Directors. The aggregate amount of compensation received by the Company’s key management during the nine month period ended September 30, 2024 and 2023 is the following:

	nine month period ended September 30,
	2024		2023
Salaries and wages		27,973		29,958
Variable cash compensation (1)		82,214		96,876
		110,187		126,834

⁽¹⁾ The Company approves the variable cash compensation for its executives, typically at the end of March of each year, for the year that has just ended. Therefore, the variable cash compensation amount presented in these financial statements is the amount actually paid during the year to which they refer, related to previous periods.

17

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

The Chief Executive Officer, the Administrative and Control Officer, the Chief Financial Officer and Investor Relations and the Executive Officers are parties to the Brazilian employment contract regime referred to as CLT (which is the Consolidation of Labor Laws), which follows all the legal prerogatives of payments and benefits.

Except for those described above, the Board of Directors members are not party to any employment contract or any other contracts for additional business benefits such as post-employment benefits or other long-term benefits, termination of work that does not conform to those requested by the CLT.

9 Income taxes

a. Composition of deferred tax income and social contribution

	Company						Consolidated
	September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
Deferred income taxes assets		—			—			2,420,046			3,751,335
Deferred income taxes liabilities		(2,752,215	)		(3,136,770	)		(6,726,881	)		(6,585,412	)
		(2,752,215	)		(3,136,770	)		(4,306,835	)		(2,834,077	)

	Company
	December 31, 2023			Income statement			September 30, 2024
Tax losses and negative basis of social contribution		28,991			(28,991	)		—
Expected credit losses on trade accounts receivable		81,170			19,453			100,623
Provisions for contingencies		190,166			(9,180	)		180,986
Present value adjustment - Trade accounts receivable		3,553			598			4,151
Right of use assets		5,178			3,811			8,989
Goodwill amortization		(3,277,762	)		—			(3,277,762	)
Present value adjustment - Trade accounts payable		(4,985	)		5,431			446
Hedge operations (2)		(134,159	)		208,154			73,995
Accrued liabilities		162,827			39,106			201,933
Realization of other reserves		(254,252	)		2,211			(252,041	)
Cut-off Adjustment (Revenue Recognition)		—			103,233			103,233
Other temporary differences		62,503			40,729			103,232
Deferred taxes, net		(3,136,770	)		384,555			(2,752,215	)

	Company
	December 31, 2022			Income statement			Other Adjustments		September 30, 2023
Expected credit losses on trade accounts receivable		88,021			(2,879	)		—		85,142
Provisions for contingencies		162,583			27,967			—		190,550
Present value adjustment - Trade accounts receivable		3,318			(191	)		—		3,127
Right of use assets		2,732			1,445			—		4,177
Goodwill amortization		(3,277,762	)		—			—		(3,277,762	)
Present value adjustment - Trade accounts payable		2,090			(7,237	)		—		(5,147	)
Hedge operations (2)		61,197			(101,833	)		—		(40,636	)
Accrued liabilities		184,190			(76,868	)		—		107,322
Realization of other reserves		(257,332	)		2,329			—		(255,003	)
Other temporary differences		35,849			6,526			92		42,467
Deferred taxes, net		(2,995,114	)		(150,741	)		92		(3,145,763	)

18

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)  

	Consolidated
	December 31, 2023			Income statement			Exchange variation			Other adjustments (1)			September 30, 2024
Tax losses and negative basis of social contribution		4,067,527			(1,293,319	)		157,833			(3,065	)		2,928,976
Expected credit losses on trade accounts receivable		184,384			65,275			10,821			—			260,480
Provisions for contingencies		607,063			(13,113	)		12,136			—			606,086
Present value adjustment - Trade accounts receivable		37,024			(8,737	)		—			—			28,287
Tax credits - Foreign subsidiaries		114,666			176			14,547			(389	)		129,000
Labor accidents accruals		38,377			(4,691	)		4,443			—			38,129
Pension plan		57,882			7,179			6,151			(45,259	)		25,953
Accrued liabilities		1,118,141			403,403			129,196			—			1,650,740
Non-deductible interests		1,026,154			(78,611	)		150,476			—			1,098,019
Right of use assets		123,053			44,213			5,181			—			172,447
Goodwill amortization		(4,124,007	)		(53,338	)		(58,384	)		—			(4,235,729	)
Present value adjustment - Trade accounts payable		(29,359	)		9,373			—			—			(19,986	)
Business combination		(2,150,748	)		(193,724	)		(254,951	)		—			(2,599,423	)
Inventory valuation		(1,002,560	)		(304,603	)		(138,155	)		—			(1,445,318	)
Hedge and hedge accounting operations (2)		(122,796	)		197,696			—			(2,662	)		72,238
Realization of other reserves		(559,848	)		10,616			—			—			(549,232	)
Accelerated depreciation and amortization		(2,489,809	)		82,287			(300,790	)		—			(2,708,312	)
Cut-off Adjustment (Revenue Recognition)		2,982			130,191			—			—			133,173
Fair Value Adjustment Grains - Subsidiaries		—			(17,275	)		—			—			(17,275	)
Other temporary differences		267,797			(89,625	)		(53,260	)		—			124,912
Deferred taxes, net		(2,834,077	)		(1,106,627	)		(314,756	)		(51,375	)		(4,306,835	)

	Consolidated
	December 31, 2022			Income statement			Exchange variation			Other adjustments (1)			September 30, 2023
Tax losses and negative basis of social contribution		3,387,144			1,483,096			(62,966	)		—			4,807,274
Expected credit losses on trade accounts receivable		164,732			2,058			(1,791	)		—			164,999
Provisions for contingencies		716,633			(15,373	)		(8,733	)		—			692,527
Present value adjustment - Trade accounts receivable		59,095			(23,406	)		—			—			35,689
Tax credits - Foreign subsidiaries		68,855			(722	)		(2,642	)		109			65,600
Labor accidents accruals		32,032			6,212			(1,312	)		—			36,932
Pension plan		54,708			499			(2,927	)		(19,995	)		32,285
Accrued liabilities		1,257,677			353,120			(34,776	)		2			1,576,023
Non-deductible interests		399,481			571,200			(8,398	)		—			962,283
Right of use assets		117,832			123,613			(2,736	)		—			238,709
Goodwill amortization		(4,100,891	)		(28,314	)		17,627			—			(4,111,578	)
Present value adjustment - Trade accounts payable		(42,292	)		7,570			—			—			(34,722	)
Business combination		(2,303,239	)		20,953			87,699			—			(2,194,587	)
Inventory valuation		(572,398	)		(813,202	)		21,818			—			(1,363,782	)
Hedge and hedge accounting operations (2)		42,831			(68,787	)		—			2,482			(23,474	)
Realization of other reserves		(575,927	)		12,311			—			—			(563,616	)
Accelerated depreciation and amortization		(3,061,949	)		(136,056	)		110,518			—			(3,087,487	)
Other temporary differences		404,874			(274,299	)		(2,255	)		17,586			145,906
Deferred taxes, net		(3,950,802	)		1,220,473			109,126			184			(2,621,019	)

⁽¹⁾ Changes in the deferred tax balance sheet accounts that do not directly impact profit & loss accounts, are shown in a specific column in the footnotes. These changes refer mainly to the direct subsidiary Brazservice Ltda. incorporated in the Company; deferred taxes on cash flow hedge operations recognized in equity, carried out by the subsidiary Seara Alimentos; gains associated with pension and other postretirement benefit obligations in the United States of America; impacts related to the acquisitions of the King´s group in Italy and Rivalea in Australia.

⁽²⁾ The hedge and hedge accounting operations are demonstrated in footnote 26 - Risk management and financial instruments.

19

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)  

b. Reconciliation of income tax and social contribution expense:

	Company						Consolidated
	nine month period ended September 30,						nine month period ended September 30,
	2024			2023			2024			2023
Profit (loss) before income taxes (PBT)		6,444,189			(971,444	)		11,260,855			(1,485,939	)
Brazilian statutory corporate tax rate		-34	%		-34	%		-34	%		-34	%
Expected tax credit (expense)		(2,191,024	)		330,291			(3,828,691	)		505,219
Adjustments to reconcile taxable income:
Share of profit of equity-accounted investees		2,324,773			191,330			611			16,661
Investments grants (3)		462,958			732,398			864,934			1,838,797
International rate differences  - Foreign subsidiaries		—			—			682,424			(218,804	)
Net income arising from foreign subsidiaries (4)		165,574			(1,359,809	)		147,688			(1,359,809	)
Transfer pricing adjustment		(37,245	)		(12,673	)		(37,245	)		(12,673	)
Unrecognized tax benefits		48,219			—			(1,105,318	)		(929,353	)
Non-taxable interest - Foreign subsidiaries		—			—			60,781			495,239
Dividends Paid Abroad		—			—			(54,688	)		—
Donations and social programs (3)		(3,910	)		(26,086	)		(3,910	)		(26,086	)
SELIC interests on tax credits		11,031			8,548			27,121			21,449
Other permanent differences		(20,814	)		(36,131	)		11,286			218,237
Current and deferred income tax (expense) income		759,562			(172,132	)		(3,235,007	)		548,877
Current income tax		375,007			(21,391	)		(2,128,380	)		(671,596	)
Deferred income tax		384,555			(150,741	)		(1,106,627	)		1,220,473
		759,562			(172,132	)		(3,235,007	)		548,877
% IT/PBT		11.79	%		-17.72	%		-28.73	%		36.94	%

	Company						Consolidated
	Three month period ended September 30,						Three month period ended September 30,
	2024			2023			2024			2023
Profit (loss) before income taxes (PBT)		3,678,914			612,694			6,638,512			791,035
Brazilian statutory corporate tax rate		-34	%		-34	%		-34	%		-34	%
Expected tax credit (expense)		(1,250,831	)		(208,316	)		(2,257,094	)		(268,952	)
Adjustments to reconcile taxable income:
Share of profit of equity-accounted investees		931,625			413,122			7,348			6,656
Investments grants (3)		164,260			253,450			307,280			636,233
International rate differences  - Foreign subsidiaries		—			—			330,581			(72,494	)
Net income arising from foreign subsidiaries (4)		336,451			(470,475	)		342,722			(470,475	)
Transfer pricing adjustment		(12,415	)		(3,246	)		(12,415	)		(3,246	)
Unrecognized tax benefits		—			—			(1,129,171	)		(201,287	)
Non-taxable interest - Foreign subsidiaries		—			—			21,677			170,425
Dividends Paid Abroad		—			—			—			—
Donations and social programs (3)		6,519			(6,128	)		6,519			(6,128	)
SELIC interests on tax credits		(1,091	)		3,650			5,823			8,994
Other permanent differences		(10,894	)		(22,100	)		(66,105	)		99,845
Current and deferred income tax (expense) income		163,624			(40,043	)		(2,442,835	)		(100,429	)
Current income tax		181,819			(138,192	)		(789,565	)		(478,625	)
Deferred income tax		(18,195	)		98,149			(1,653,270	)		378,196
		163,624			(40,043	)		(2,442,835	)		(100,429	)
% IT/PBT		4.45	%		-6.54	%		(36.80	)%		-12.70	%

20

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)  

According to IAS 12/CPC 32, the average effective tax rate is calculated by the ratio between tax expense (revenue) and accounting profit. However, it is important to note that this rate may be influenced by transactions that impact tax expense (revenue) but are not directly related to net profit for the period. Examples of such transactions include the effects of unrecognized deferred taxes, income tax and social contribution on the realization of the revaluation reserve, dividends paid abroad, and investment subsidies from previous years. In our understanding, this information should be considered when analyzing the effective tax rate.

⁽³⁾ The Company and its subsidiaries have subsidies granted by state governments, as presumed credit, in accordance with the regulations of each state. The amounts appropriated from this tax incentive as revenue in the result are excluded in the calculation of taxes on profit, when the requirements set forth in the current legislation are met. During the nine month period ended September 30, 2024, the Company and its subsidiaries recorded the amount of government subsidies in the amount of R$2.44 billion (R$5.4 billion on September 30, 2023), of which R$2.54 billion of presumed credit (R$2.18 billion on September 30, 2023) was excluded from its income tax and social contribution calculation basis.

This exclusion of this tax benefit from the income tax and social contribution calculation basis on net income reflected a tax gain in nine month period ended September 30, 2024 of R$864,934 million related to the presumed credit (R$744,002 million on September 30, 2023).

On June 12, 2023, when considering Repetitive Theme 1182, the STJ understood that the requirement of IRPJ and CSLL on amounts related to ICMS tax incentives, other than those granted in the form of presumed credits, is undue, provided that the requirements of article 30 of Law No. 12,973/14 are met, given that the Company recorded the profit reserve referred to in the legislation. Law No. 14,789/23 changed the investment subsidy regime for tax purposes and revoked article 30 of Law No. 12,973/14 and its effects are being complied with by the Company for the year 2024, except with regard to presumed ICMS credits, the taxation of which was ruled out by the unified understanding of the STJ Panels that deal with tax matters in the judgment of ERESP 1,517,492/PR.

⁽⁴⁾ According to Law No. 12,973/14, the income from foreign subsidiaries must be taxed at the Brazilian statutory tax rate of 34%, and the income tax paid abroad by these subsidiaries may be used to compensate income taxes to be paid in Brazil. The results obtained from foreign subsidiaries are subject to taxation by the countries where they are based, according to applicable rates and legislation (profits taxed by-foreign jurisdictions included in the reconciliation of income tax and social contribution expense). The Group analyzes the results of each subsidiary for the application of its income tax legislation, in order to respect the treaties signed by Brazil and avoid double taxation.

⁽⁵⁾ Refers to the donations made by the Company, as described in Note 25 – Expenses by nature.

Global Minimum Tax:

From 2024, Pillar II rules come into force in several countries, impacting multinationals operating in these jurisdictions.

The Company, as it is subject to such global Pillar II standards, decided to apply the exception for recognition and disclosure of information on deferred tax assets and liabilities, as well as estimated additional payment related to income tax due to measurement uncertainties and impacts.

We would like to highlight that the Company has hired a specialized company which is helping us to monitor the potential impacts that this new rule could have on the Group.

Transfer Pricing:

Transfer pricing rules in Brazil have undergone significant changes with the enactment of Law No. 14,596/2023 and Normative Instruction RFB No. 2,132/2023, aiming to align the country with international practices, such as OECD guidelines. This new regulation, whose mandatory implementation begins in calendar year 2024, changes the calculation methods and documentation required for transactions between related companies, directly impacting the way multinational companies must calculate and report their transfer pricing adjustments.

The Company is making efforts to analyze these changes in detail and assess the potential impacts on our processes. To this end, it has hired a specialized company to assist in mapping and adapting to the new requirements.

21

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)  

10 Investments in equity-accounted investees, associates and joint venture

Changes in the Company’s investments:
								Equity
	December 31, 2023		Addition (disposal)			Exchange rate variation		Changes in the equity of investees (1)			Proportionate share of income (loss)			September 30, 2024
JBS Embalagens Metálicas Ltda.		80,639		—			—		—			354			80,993
JBS Confinamento Ltda.		346,365		—			—		—			(37,882	)		308,483
Conceria Priante Srl		93,959		—			12,061		—			(16,397	)		89,623
JBS Leather International B.V.		550,351		—			73,191		67,887			5,507			696,936
Meat Snacks Partners, LLC. (2)		188,431		(45,079	)		18,465		(18,008	)		(1,767	)		142,042
JBS Asset Management Corporation		94,604		—			11,474		—			(4,260	)		101,818
JBS Investments Luxembourg S.à.r.l. (3)		40,061,058		(5,944,730	)		4,960,434		(3,538,196	)		6,873,334			42,411,900
JBS Toledo N.V.		202,936		—			28,279		—			12,949			244,164
JBS Chile Limitada		21,935		—			2,749		—			5,751			30,435
JBS Finance Luxembourg S.à.r.l.		310		—			38		—			(21	)		327
Total		41,640,588		(5,989,809	)		5,106,691		(3,488,317	)		6,837,568			44,106,721

Changes in the Consolidated’s investments:

Refers to investments in associate and joint venture:

									Equity
	Participation			December 31, 2023		Profit distribution			Changes in the equity of investees		Proportionate share of income			September 30, 2024
Meat Snacks Partners, LLC.(2)		50	%		188,431		(45,079	)		457		(1,767	)		142,042
JBS Foods Ontario, Inc.		100	%		77,430		—			10,212		3,619			91,261
Birla Societá Agricola Srl		20	%		8,160		—			1,089		(54	)		9,195
Total					274,021		(45,079	)		11,758		1,798			242,498

⁽¹⁾ Refers to changes in the equity of investees arising from subsidiaries of the functional currency dollar of the direct subsidiary JBS Investments Luxembourg S.à.r.l. (JBS Investments Lux) to the functional currency of its subsidiaries, such as Australian dollar, Canadian dollar, Pound sterling, Euro, Mexican peso, among others.

⁽²⁾ The joint venture Meat Snacks Partners LLC distributed profits to the Company.

⁽³⁾ The Company sent cash to its direct subsidiary JBS Investments Lux and reduced capital by settling the credit assignment from the current account of the indirect parent company Seara Holding Ltda.

22

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)  

Changes in the Company’s investments:
										Equity
	December 31, 2022			Addition (disposal)			Exchange rate variation			Changes in the equity of investees (1)			Proportionate share of income			September 30, 2023
JBS Embalagens Metálicas Ltda.		80,777			—			—			—			(110	)		80,667
JBS Confinamento Ltda.		377,409			—			—			—			(94,338	)		283,071
Conceria Priante Srl		120,500			—			(5,507	)		—			(13,589	)		101,404
JBS Leather International B.V.		635,828			19,707			(24,706	)		(709	)		(11,000	)		619,120
Brazservice Ltda.		43,940			(43,304	)		—			—			(636	)		—
Meat Snacks Partners, LLC		209,092			(32,500	)		8,997			(9,000	)		45,195			221,784
Enersea Ltda.		350			(356	)		—			—			6			—
JBS Asset Management Corporation		111,742			—			(4,659	)		—			(2,895	)		104,188
JBS Investments Luxembourg S.à.r.l.		53,603,571			(13,194,616	)		(2,610,488	)		1,059,042			622,562			39,480,071
JBS B.V.		(27	)		264			(1	)		(1	)		(235	)		—
JBS Toledo N.V.		195,970			—			(9,784	)		—			12,662			198,848
JBS Chile Limitada		19,953			—			(2,239	)		—			5,153			22,867
JBS Finance Luxembourg S.à.r.l.		404			—			(16	)		—			(39	)		349
Total		55,399,509			(13,250,805	)		(2,648,403	)		1,049,332			562,736			41,112,369

									Equity
	Participation			December 31, 2023		Profit distribution			Changes in the equity of investees			Proportionate share of income			September 30, 2023
Meat Snacks Partners, LLC		50	%		209,092		(32,500	)		(3	)		45,195			221,785
JBS Foods Ontario, Inc.		100	%		75,720		—			(2,966	)		5,419			78,174
Birla Societá Agricola Srl		20	%		10,025		—			(394	)		(1,527	)		8,104
Total					294,837		(32,500	)		(3,363	)		49,087			308,063

11 Property, plant and equipment

Changes in property, plant and equipment:

Company	December 31, 2023		Additions net of transferences (1)			Disposals			Depreciation expense			September 30, 2024
Buildings		3,787,295		105,329			(4,176	)		(152,257	)		3,736,191
Land		2,278,266		10,451			(1,169	)		—			2,287,548
Machinery and equipment		3,136,140		497,616			(3,366	)		(252,343	)		3,378,047
Facilities		1,926,755		414,066			(180	)		(107,165	)		2,233,476
Computer equipment		75,093		15,658			(205	)		(13,817	)		76,729
Vehicles (land and air)		707,698		141,736			(21,210	)		(74,518	)		753,706
Construction in progress		1,528,857		(295,588	)		(182	)		—			1,233,087
Other		69,514		14,108			(187	)		(12,230	)		71,205
		13,509,618		903,376			(30,675	)		(612,330	)		13,769,989

23

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Company	December 31, 2022		Additions net of transferences (1)			Disposals		Incorporation			Depreciation expense			September 30, 2023
Buildings		3,580,188		481,578			14,402		(42,912	)		(185,806	)		3,847,450
Land		1,749,340		293,857			276		(83	)		—			2,043,390
Machinery and equipment		3,066,247		323,003			14,181		(38,886	)		(234,457	)		3,130,088
Facilities		1,797,795		190,242			7,852		(843	)		(86,104	)		1,908,942
Computer equipment		41,814		17,859			178		(702	)		(12,644	)		46,505
Vehicles (land and air)		515,344		273,194			371		(25,766	)		(69,324	)		693,819
Construction in progress		2,214,667		(636,295	)		—		—			—			1,578,372
Other		62,468		15,899			642		(1,535	)		(9,352	)		68,122
		13,027,863		959,337			37,902		(110,727	)		(597,687	)		13,316,688

Consolidated	December 31, 2023		Additions net of transferences (1)			Disposals			Depreciation expense			Exchange rate variation		September 30, 2024
Buildings		20,842,498		1,102,842			(57,522	)		(1,010,963	)		1,558,537		22,435,392
Land		5,856,709		117,275			(22,046	)		—			271,797		6,223,735
Machinery and equipment		20,868,860		2,713,405			(121,025	)		(2,506,709	)		1,866,023		22,820,554
Facilities		3,698,925		672,760			(2,231	)		(206,812	)		9,650		4,172,292
Computer equipment		805,067		279,698			(11,108	)		(196,954	)		80,706		957,409
Vehicles (land and air)		1,320,041		390,599			(40,258	)		(176,674	)		75,364		1,569,072
Construction in progress		7,923,847		(737,136	)		(22,937	)		—			495,822		7,659,596
Other		1,225,173		371,184			(4,573	)		(159,099	)		128,417		1,561,102
		62,541,120		4,910,627			(281,700	)		(4,257,211	)		4,486,316		67,399,152

Consolidated	December 31, 2022		Additions net of transferences (1)			Business combination adjustments			Disposals			Depreciation expense			Exchange rate variation			September 30, 2023
Buildings		19,722,714		2,734,217			21			(77,737	)		(957,115	)		(545,816	)		20,876,284
Land		5,512,969		305,349			—			(1,445	)		—			(131,678	)		5,685,195
Machinery and equipment		19,998,538		3,715,403			49,681			(152,052	)		(2,226,492	)		(598,574	)		20,786,504
Facilities		3,001,689		777,783			—			(4,339	)		(164,523	)		(800	)		3,609,810
Computer equipment		606,623		243,593			—			(2,951	)		(162,590	)		(11,729	)		672,946
Vehicles (land and air)		1,121,272		395,802			—			(29,463	)		(158,952	)		(37,179	)		1,291,480
Construction in progress		11,084,915		(2,356,037	)		—			(10,551	)		—			(206,447	)		8,511,880
Other		1,122,072		228,206			(73	)		(46,601	)		(131,288	)		(23,063	)		1,149,253
		62,170,792		6,044,316			49,629			(325,139	)		(3,800,960	)		(1,555,286	)		62,583,352

⁽¹⁾ Additions for each category includes transfer from construction in progress during the period.

For nine month period ended September 30, 2024, the amount of capitalized interest added to construction in progress and included in additions in the Company was R$29,299 (R$100.994 at September 30, 2023) and R$136,434 (R$284.594 at September 30, 2023) in the Consolidated. The capitalization rate used at September 30, 2024 was 14.41% p.y in the Company and 5.82% p.y in the Consolidated (14.35% p.y. in the Company and 7.94% p.y. in the Consolidated on December 31, 2023 )

The Company tests the recoverability of its assets annually using the value in use concept through cash flow models. The test is formalized at the end of the fiscal year on December 31, and monitors indicators of impairment during the course of the fiscal year. In the nine month period ended September 30, 2024, the Company recognized impairment of fixed assets in the amount of US$26.7 million (equivalent to R$145.5 million), related to the restructuring of the indirect subsidiary Pilgrim’s Pride Corporation (PPC).

 

24

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023
(Expressed in thousands of Brazilian reais)  

12 Leases

The Company uses the optional exemption to not recognize a right of use asset and lease liability for short term (less than 12 months) and low value leases. The average discount rate used for the present value’s calculation of the lease provision of the identified assets and, consequently, for the monthly accrual of financial interest were 6.27% p.y. in the Company (6.68% on December 31, 2023) and 5,08% p.y. in the Consolidated (5.85% on December 31, 2023), in accordance with the term of each lease agreement and the economic policy of each subsidiary’s domicile.

12.1 Right of use asset

Changes in the right of use assets:

Company	December 31, 2023		Additions (1)		Terminated contracts			Amortization			September 30, 2024
Buildings		22,633		48,547		(4,954	)		(14,198	)		52,028
Computer equipment		51,240		—		—			(23,742	)		27,498
Machinery and equipment		37,956		82,377		(5,506	)		(23,068	)		91,759
Operating plants		11,999		—		(5,135	)		(3,443	)		3,421
Land		505		335		—			(291	)		549
Vehicles (land)		11,468		18,769		(353	)		(5,716	)		24,168
		135,801		150,028		(15,948	)		(70,458	)		199,423

Company	December 31, 2022		Additions (1)		Terminated contracts			Amortization			September 30, 2023
Buildings		30,041		4,112		—			(11,654	)		22,499
Computer equipment		10,728		—		—			(6,950	)		3,778
Machinery and equipment		12,747		35,589		(263	)		(10,186	)		37,887
Operating plants		623		16,958		—			(4,225	)		13,356
Land		253		793		—			(425	)		621
Vehicles (land)		272		3,329		(54	)		(610	)		2,937
		54,664		60,781		(317	)		(34,050	)		81,078

Consolidated	December 31, 2023		Additions (1)			Terminated contracts			Amortization			Exchange rate variation		September 30, 2024
Growing facilities		3,899,030		329,979			(128,977	)		(624,256	)		229,618		3,705,394
Buildings		2,576,093		846,631			(74,519	)		(354,001	)		275,188		3,269,392
Computer equipment		75,203		(853	)		—			(33,507	)		2		40,845
Machinery and equipment		436,204		339,349			(22,525	)		(183,411	)		36,692		606,309
Operating plants		95,348		(652	)		(21,251	)		(17,479	)		1,510		57,476
Land		92,882		3,432			(76	)		(10,229	)		8,243		94,252
Vehicles (land)		1,083,095		190,501			(13,109	)		(287,933	)		138,201		1,110,755
		8,257,855		1,708,387			(260,457	)		(1,510,816	)		689,454		8,884,423

25

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023
(Expressed in thousands of Brazilian reais)  

Consolidated	December 31, 2022		Business combination adjustments			Additions (1)			Terminated contracts			Amortization			Exchange rate variation			September 30, 2023
Growing facilities		4,299,324		(51,500	)		742,291			(56,016	)		(621,214	)		(90,285	)		4,222,600
Buildings		2,227,940		—			794,113			(29,262	)		(308,629	)		(42,759	)		2,641,403
Computer equipment		48,089		—			(162	)		—			(16,645	)		(2	)		31,280
Machinery and equipment		547,282		—			125,734			(5,456	)		(191,645	)		(16,326	)		459,589
Operating plants		97,601		—			27,156			(686	)		(23,734	)		(789	)		99,548
Land		102,478		—			6,955			(117	)		(9,650	)		(2,316	)		97,350
Vehicles (land)		1,052,178		—			388,571			(3,341	)		(269,761	)		(56,166	)		1,111,481
		8,374,892		(51,500	)		2,084,658			(94,878	)		(1,441,278	)		(208,643	)		8,663,251

⁽¹⁾ Additions for each category includes PIS and COFINS to be paid.

12.2 Lease liabilities

	Company						Consolidated
	September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
Undiscounted lease payments		256,994			168,452			11,803,866			10,953,118
Present value adjustment		(31,134	)		(17,422	)		(2,151,861	)		(2,039,185	)
		225,860			151,030			9,652,005			8,913,933
Breakdown:
Current liabilities		74,958			62,454			1,886,162			1,707,172
Non-current liabilities		150,902			88,576			7,765,843			7,206,761
		225,860			151,030			9,652,005			8,913,933

26

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Changes in the lease liabilities:

Company	December 31, 2023		Additions		Interest accrual		Payments			Terminated contracts			September 30, 2024
Lease liabilities		151,030		150,027		7,844		(63,083	)		(19,958	)		225,860

Company	December 31, 2022		Additions		Interest accrual		Payments			Terminated contracts			September 30, 2023
Lease liabilities		62,698		60,815		4,773		(34,588	)		(335	)		93,363

Consolidated	December 31, 2023		Additions		Interest accrual		Payments			Terminated contracts			Exchange rate variation		September 30, 2024
Lease liabilities		8,913,933		1,727,597		392,298		(1,843,813	)		(282,639	)		744,629		9,652,005

Consolidated	December 31, 2022		Business combination adjustments			Additions		Interest accrual		Payments			Terminated contracts			Exchange rate variation			September 30, 2023
Lease liabilities		8,984,008		(51,501	)		2,105,268		367,535		(1,777,882	)		(39,545	)		(290,122	)		9,297,761

The amounts recognized as lease expense are shown below:

	Company				Consolidated
	2024		2023		2024		2023
Variable lease payments		8,778		6,330		2,469,755		2,265,973
Short term lease liability		21,391		18,176		622,334		969,567
Non-material lease liability		2,754		7,597		4,688		23,542
		32,923		32,103		3,096,777		3,259,082

The non-current portion of the lease liabilities schedule is as follows:

	September 30, 2024
	Company			Consolidated
2025		11,442			1,350,993
2026		57,166			1,333,326
2027		45,851			1,022,515
2028		38,761			837,888
2029		12,390			710,326
Maturities thereafter 2029		3,140			4,174,710
Total Future Minimum Lease Payments		168,750			9,429,758
Present Value of Lease Liabilities		(17,848	)		(1,663,915	)
Leases payable - non-current		150,902			7,765,843

27

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

13 Intangible assets

Changes in intangible assets:

Company	December 31, 2023		Additions		Amortization expenses			September 30, 2024
Amortizing:
Trademarks		171,628		—		(29,494	)		142,134
Softwares		30,448		74,290		(9,712	)		95,026
Others		2,236		—		—			2,236
		204,312		74,290		(39,206	)		239,396

Company	December 31, 2022		Additions		Amortization expenses			September 30, 2023
Amortizing:
Trademarks		10,487		2,228		(3,721	)		8,994
Softwares		20,534		12,113		(3,828	)		28,819
		31,021		14,341		(7,549	)		37,813

Consolidated	December 31, 2023		Additions		Disposals			Amortization expenses			Exchange rate variation		September 30, 2024
Amortizing:
Trademarks		1,651,771		3,550		—			(115,461	)		206,048		1,745,908
Softwares		120,746		89,698		(39	)		(24,421	)		1,194		187,178
Customer relationships		2,353,676		—		—			(283,913	)		319,461		2,389,224
Supplier contract		135,931		—		—			(14,733	)		5,541		126,739
Others		5,049		168		—			(925	)		328		4,620
Non-amortizing:
Trademarks		5,290,539		2,437		—			—			707,118		6,000,094
Water rights		55,147		1,187		—			—			7,175		63,509
		9,612,859		97,040		(39	)		(439,453	)		1,246,865		10,517,272

Consolidated	December 31, 2022		Additions		Disposals			Amortization expenses			Exchange rate variation			September 30, 2023
Amortizing:
Trademarks		1,648,336		2,228		—			(84,363	)		(38,720	)		1,527,481
Softwares		109,985		29,895		(72	)		(19,013	)		(293	)		120,502
Customer relationships		2,868,194		11,566		(11,884	)		(275,498	)		(101,928	)		2,490,450
Supplier contract		159,187		—		—			(14,339	)		(2,521	)		142,327
Others		4,345		181		(146	)		(1,024	)		(176	)		3,180
Non-amortizing:
Trademarks		5,479,137		1,244		—			—			(214,879	)		5,265,502
Water rights		59,205		—		—			—			(3,055	)		56,150
		10,328,389		45,114		(12,102	)		(394,237	)		(361,572	)		9,605,592

Impairment test:

Annualy, the Company tests the recoverability of its assets using the concept of value in use through cash flow models and at the nine month period ended September 30, 2024, there were no indications of impairment.

28

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

14 Goodwill

In the Company, goodwill is recognized under the caption “Investments in subsidiaries, associate and joint venture” because for the investor it is part of its investment in the subsidiary’s acquisition; and as goodwill, in the Consolidated because it refers to expectation of future earnings from the acquired subsidiary, which assets and liabilities are consolidated with the Company’s. Therefore, in the Company there is only goodwill from incorporations in the amount of R$9,085,970 and in the Consolidated all goodwill are recognized as intangible. For tax purposes, all the goodwill recorded in the Company was fully amortized in the year ended December 31, 2021.

Changes in goodwill:	Consolidated
	September 30, 2024		December 31, 2023
Initial balance		29,556,234		30,412,362
Business combination adjustments		–		64,206
Exchange rate variation		2,306,011		(920,334	)
Closing balance		31,862,245		29,556,234

	Consolidated
CGU	September 30, 2024		December 31, 2023
Brazil Beef		9,069,926		9,069,926
Seara		3,714,639		3,713,132
USA Pork		3,783,891		3,362,447
Moy Park (1)		—		3,764,512
Pilgrim’s Food Masters (PFM) (1)		—		1,629,983
Australia Smallgoods		1,715,274		1,503,698
Australia Meat		1,551,352		1,359,994
PPC - Fresh Poultry (1)		2,325,799		—
PPC - Brands & Snacking (1)		1,523,953		—
PPC - Fresh Pork/Lamb (1)		1,173,412		—
PPC - Food Service (1)		1,003,131		—
PPC - Meals (1)		337,842		—
Others CGUs without significant goodwill		5,663,026		5,152,542
Total		31,862,245		29,556,234

The Company tests annually. For the nine month period ended September 30, 2024 there were no indications that goodwill within any CGU was impaired.

⁽¹⁾ On July 1, 2024, the Company effectively completed the reorganization of the cash-generating units (CGU) Moy Park and Pilgrim’s Food Masters, driven by restructuring initiatives at its indirect subsidiary, Pilgrim’s Pride Corporation (“PPC”) in Europe. The purpose of these activities is to integrate core operations and reallocate processing capacities across production facilities, resulting in the closure of some facilities in Europe. As a result of this reorganization, the Company reassigned assets and liabilities to the applicable CGUs and allocated goodwill using the relative net assets approach. The new CGUs are Fresh Pork/Lamb, Fresh Poultry, Food Service, Meals, and Brands & Snacking. The Company then performed an interim impairment test on the CGUs on both a pre- and post reorganization basis. There was no impairment recognized in the nine-month period ended September 30, 2024 as a result of these tests.

The Company additionally assessed if its reorganization indicated that any carrying amounts of its non-goodwill intangible assets might not be recoverable. The reorganization did not result in any change in business use for any of the intangible assets and therefore, the Company determined that no indicators were present that required the test of the recoverability of the asset group-level carrying amounts of its intangible assets in the nine-month period ended September 30, 2024.

29

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

15 Trade accounts payable

	Company						Consolidated
	September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
Domestic
Commodities		2,423,970			2,613,599			8,249,731			8,527,807
Materials and services		1,257,817			1,103,675			15,347,108			15,120,057
Finished products		509,445			251,126			454,406			184,266
Present value adjustment		(16,982	)		(36,772	)		(65,685	)		(95,094	)
		4,174,250			3,931,628			23,985,560			23,737,036
Foreign
Commodities		—			55,948			82,521			151,795
Materials and services		331,049			480,235			1,449,310			1,552,561
Finished products		2,597			325			5,887			9,582
		333,646			536,508			1,537,718			1,713,938
Total trade accounts payable		4,507,896			4,468,136			25,523,278			25,450,974
Supply chain finance (1)
Domestic		1,734,217			1,466,235			6,019,867			4,552,484
Foreign		—			—			60,035			37,386
Total supply chain finance		1,734,217			1,466,235			6,079,902			4,589,870
Total		6,242,113			5,934,371			31,603,180			30,040,844

⁽¹⁾ The Company and its indirect subsidiary Seara Alimentos carry out transactions with financial institutions that allow the suppliers to anticipate their receivables in the domestic market. It should be emphasized, operationally and commercially, there are no identifiable changes to the conditions applied in the negotiations with suppliers such as price or flexibility on payment terms. In addition, this operation did not bring any other cost to the Group and all financial costs of the operation are the responsibility of the suppliers.

The Company enters into purchase agreements for livestock with certain suppliers ensuring a fixed price, or to fix, when purchasing cattle, without a cash impact in the Company until the receiving the cattle or maturity date of these commitments. Based on this future commitment contract, JBJ has already advanced this operation with the banks under the supply chain finance modality. At September 30, 2024 the balance of this transaction was R$343,333 (R$358,139 at December 31, 2023).

 

30

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

16 Loans and financing

	Company
	Average annual				Index on variable				Current				Non-Current
Type	interest rate			Currency	rate loans		Payment terms		September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Foreign currency
ACC		6.15	%	USD		—		2024		415,378		252,514		—		—
Prepayment		7.38	%	USD		SOFR		2024-27		—		26,776		—		844,059
FINIMP		6.46	%	USD EUR		Euribor		2025		31,464		151,490		—		3,131
Working capital - American Dollar		8.92	%	USD		SOFR		2024 - 30		2,024		1,751		12,593		12,359
CRA		4.92	%	USD		—		2024 - 38		8,534		2,139		356,512		186,218
										457,400		434,670		369,105		1,045,767
Local currency
Credit note - export		12.97	%	BRL		CDI		2024 - 30		1,610		11,066		4,032		1,035,206
CRA		10.86	%	BRL		CDI e IPCA		2024 - 37		735,313		721,645		6,063,546		9,746,977
Working capital - Brazilian Reais		17.45	%	BRL		TJLP		2023 - 28		—		24,597		—		79,061
CDC		15.50	%	BRL		—		2024 - 28		67,457		103,101		13,489		43,670
FINAME		5.99	%	BRL		—		2024 - 25		307		2,314		—		27
										804,687		862,723		6,081,067		10,904,941
										1,262,087		1,297,393		6,450,172		11,950,708

31

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

	Consolidated
	Average annual				Index on variable				Current				Non-Current
Type	interest rate			Currency	rate loans		Payment terms		September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Foreign currency
ACC		6.07	%	USD		—		2024		5,073,107		252,514		—		—
Prepayment		7.38	%	USD		SOFR		2024 - 27		—		26,776		—		844,059
FINIMP		6.46	%	USD e EUR		Euribor		2025		31,464		151,490		—		3,131
White Stripe credit facility		8.45	%	USD e CAD		—		-		—		14,001		—		—
Working capital - American Dollar		7.01	%	USD		SOFR		2024 - 30		2,024		1,751		12,593		12,359
CRA		5.36	%	USD		—		2024 - 38		8,534		2,139		356,512		186,218
Scott credit facilities		2.20	%	USD		—		2030		—		—		—		8,787
Credit note - export		6.96	%	USD		SOFR		2025		548,934		—		—		—
Others		6.53	%	—		—		—		71,862		—		9,763		—
Local currency										5,735,925		448,671		378,868		1,054,554
FINAME		5.99	%	BRL		—		2024 - 25		307		2,314		—		27
Prepayment		7.09	%	GBP, USD		BoE, SOFR		2024 - 25		3,681		265,814		—		290,478
Notes 2,50% JBS Lux 2027		2.50	%	USD		—		2027		28,374		55,878		5,389,773		4,774,587
Notes 5,13% JBS Lux 2028		5.13	%	USD		—		2028		41,171		93,045		4,840,648		4,291,318
Notes 6,50% JBS Lux 2029		6.50	%	USD		—		2029		11,278		5,248		380,468		377,065
Notes 3,00% JBS Lux 2029		3.00	%	USD		—		2029		15,799		36,106		3,204,731		2,838,018
Notes 5,50% JBS Lux 2030		5.50	%	USD		—		2030		76,971		154,486		6,760,407		6,002,878
Notes 3,75% JBS Lux 2031		3.75	%	USD		—		2031		33,293		7,567		2,663,250		2,398,080
Notes 3,00% JBS Lux 2032		3.00	%	USD		—		2032		61,291		18,557		5,350,514		4,746,125
Notes 3,63% JBS Lux 2032		3.63	%	USD		—		2032		39,875		80,990		5,205,175		4,766,124
Notes 5,75% JBS Lux 2033		5.75	%	USD		—		2033		258,828		142,668		8,854,297		9,687,901
Notes 6.75% JBS Lux 2034		6.75	%	USD		—		2034		22,125		149,596		8,096,543		7,630,203
Notes 4,38% JBS Lux 2052		4.38	%	USD		—		2052		34,563		78,957		4,835,609		4,295,380
Notes 6,50% JBS Lux 2052		6.50	%	USD		—		2052		181,209		40,648		8,313,263		7,394,040
Notes 7.25% JBS Lux 2053		7.25	%	USD		—		2053		132,661		90,382		4,814,154		4,275,904
Notes 4,25% PPC 2031		4.25	%	USD		—		2031		90,814		43,436		4,596,819		4,765,795
Notes 3,50% PPC 2032		3.50	%	USD		—		2032		13,827		50,834		4,859,630		4,314,489
Notes 6,25% PPC 2033		6.25	%	USD		—		2033		81,569		212,649		5,260,610		4,763,926
Notes 6,88% PPC 2034		6.88	%	USD		—		2034		69,708		36,983		2,646,137		2,345,983
Working capital - Brazilian Reais		10.99	%	BRL		TJLP		2024 - 28		—		24,597		—		79,061
Working capital - Euros		4.00	%	EUR		Euribor		2024 - 28		109,090		83,507		64,684		49,314
Credit note - export		12.97	%	BRL		CDI		2024 - 30		5,265		14,103		6,332		1,039,597
CDC		15.31	%	BRL		—		2024 - 28		71,175		103,101		13,489		43,670
Rural - Credit note - Prefixed		10.99	%	BRL		—		2024		2,065,278		1,176,088		—		—
CRA		15.31	%	BRL		CDI e IPCA		2024 - 37		735,313		721,645		6,063,546		9,746,977
Scott credit facilities		7.69	%	USD, EUR		—		2025		—		97,247		—		2,561
Beardstown Pace credit facilities		3.65	%	USD		—		2050		—		32,383		—		313,232
JBS Australia feedlot		2.76	%	AUD		—		2028		—		4,807		—		164,861
Others		4.68	%	Several		Several		2031		201,910		44,053		565,036		53,317
										4,385,375		3,867,689		92,785,115		91,450,911
										10,121,300		4,316,360		93,163,983		92,505,465

32

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Average annual interest rate: Refers to the weighted average nominal cost of interest at the reporting date. The loans and financings are fixed by a fixed rate or indexed to rates: CDI, LIBOR, Euribor, SOFR, IPCA, TJLP, among others.

At September 30, 2024, the availability under Brasil revolving credit facilities was US$450 million (R$2.5 billion at September 30, 2024) and US$450 million (R$2.18 billion at December 31, 2023). In the United States the revolving credit facilities at September 30, 2024, was US$2.9 billion (R$15.8 billion at September 30, 2024) and US$2.9 billion (R$14 billion at December 31, 2023).

The non-current portion of the principal payment schedule of loans and financing is as follows:

	September 30, 2024
Maturity	Company		Consolidated
2025		10,238		44,995
2026		7,694		121,576
2027		44,456		5,462,173
2028		337,216		5,390,618
2029		123,115		3,749,857
Maturities thereafter 2029		5,927,453		78,394,764
		6,450,172		93,163,983

16.1 Guarantees and contractual restrictions (“covenants”)

The Company was in compliance with all of its debt covenant restrictions at September 30, 2024 and until the date that these interim financial statements were approved.

17 Other taxes payable

	Company				Consolidated
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Taxes payable in installments		277,929		288,891		315,864		329,110
PIS / COFINS tax payable		—		74,531		89,898		158,964
ICMS / VAT / GST tax payable		49,401		52,630		237,513		171,067
Withholding income taxes		33,247		48,137		42,767		50,966
IPTU and others		13,275		6,141		513,542		443,915
Subtotal		373,852		470,330		1,199,584		1,154,022
Income taxes payable		—		—		908,639		403,022
Total		373,852		470,330		2,108,223		1,557,044
Breakdown:
Current liabilities		157,581		238,006		1,640,200		1,100,179
Non-current liabilities		216,271		232,324		468,023		456,865
		373,852		470,330		2,108,223		1,557,044

33

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

18 Payroll and social charges

	Company				Consolidated
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Social charges in installments		2,217,820		2,344,071		2,222,332		2,369,913
Bonus and vacation along with related social charges		587,050		335,059		4,856,291		3,563,866
Salaries and related social charges		544,094		478,270		2,777,245		2,437,111
Others		25,586		16,403		337,677		283,826
		3,374,550		3,173,803		10,193,545		8,654,716
Breakdown:
Current liabilities		1,540,386		1,208,139		7,962,100		6,280,042
Non-current liabilities		1,834,164		1,965,664		2,231,445		2,374,674
		3,374,550		3,173,803		10,193,545		8,654,716

Labor taxes payable in installments: In December 2022, the Federal Supreme Court (STF) in a decision favorable to the Direct Action of Unconstitutionality (ADI No. 4,395), declared that was unconstitutional the subrogation of the collection of social security contributions referring to the Assistance Fund for Rural Workers (FUNRURAL) to slaughterhouses, consumer companies, consignees or cooperatives purchasing production. The Company is also waiting for the approval of the minute of judgment and the decision by the STF that will define the period for which the decision will take effect. On September 30, 2024, the Company and its subsidiaries have recognized under “Social charges in installments” the amount of R$1.52 billion, in the Company (R$1.69 in December 31,2023) and R$1.52 billion (R$1.71 in December 31,2023), in the Consolidated related to the FUNRURAL. For the nine month period ended September 30, 2024, the Company and its subsidiaries paid installments in cash and offset with the balance of recoverable taxes the amount of R$1.43 billion (R$ 1,17 billion in December 31,2023), in the Company and R$1.5 billion (R$1.22 billion in December 31,2023) in the Consolidated. The Company is still awaiting the approval of the judgment minutes that will announce the ruling, as well as any modulation of effects by the STF that will define the period for which the decision will take effect.

19 Provisions for legal proceedings

The Company is part of several lawsuits arising in the ordinary course of business for which provisions are recognized based on estimated costs determined by Management as follows:

	Company				Consolidated
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Current liabilities		—		—		1,144,412		955,866
Non-current liabilities		532,311		559,310		1,477,830		1,529,624
		532,311		559,310		2,622,242		2,485,490

	Company
	September 30, 2024								December 31, 2023
	Labor		Civil		Tax and Social Security		Total		Labor		Civil		Tax and Social Security		Total
Brazil		258,320		144,861		129,130		532,311		252,703		128,135		178,472		559,310
Total		258,320		144,861		129,130		532,311		252,703		128,135		178,472		559,310

34

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

	Consolidated
	September 30, 2024								December 31, 2023
	Labor		Civil		Tax and Social Security		Total		Labor		Civil		Tax and Social Security		Total
Brazil		538,022		381,060		551,083		1,470,165		522,569		355,844		643,924		1,522,337
USA		—		1,144,406		—		1,144,406		—		955,861		—		955,861
Other jurisdictions		334		234		7,103		7,671		312		232		6,748		7,292
Total		538,356		1,525,700		558,186		2,622,242		522,881		1,311,937		650,672		2,485,490

	Company
	Labor			Civil			Tax and Social Security
December 31, 2023		252,703			128,135			178,472
Additions, disposals and changes in prognosis		107,779			50,682			(75,093	)
Payments		(112,438	)		(46,592	)		(1,188	)
Monetary correction		10,276			12,636			26,939
September 30, 2024		258,320			144,861			129,130
December 31, 2022		252,392			77,765			148,028
Additions, disposals and changes in prognosis		102,253			64,651			15,160
Payments		(118,445	)		(50,691	)		—
Monetary correction		18,387			25,915			25,027
September 30, 2023		254,587			117,640			188,215

35

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

	Consolidated
	Labor						Civil									Tax and Social Security
Jurisdiction	Brazil			Others			Brazil			USA			Others			Brazil			Others
December 31, 2023	522,569			312			355,844			955,861			232			643,924			6,748
Additions, disposals and changes in prognosis		261,080			—			78,606			422,832			—			(126,281	)		13
Payments		(273,937	)		—			(83,129	)		(376,972	)		(21	)		(9,774	)		1
Monetary correction		28,310			—			29,739			190			(191	)		43,214			1
Exchange rate variation		—			22			—			142,495			214			—			340
September 30, 2024		538,022			334			381,060			1,144,406			234			551,083			7,103
December 31, 2022		517,526			432			253,262			909,127			116			543,296			6,753
Additions, disposals and changes in prognosis		227,649			15			108,835			211,536			—			93,167			44
Payments		(254,877	)		(43	)		(89,536	)		(442,854	)		—			(2,718	)		(64	)
Monetary correction		39,837			—			67,531			—			—			63,205			—
Exchange rate variation		—			(112	)		—			(46,155	)		(5	)		—			(230	)
September 30, 2023		530,135			292			340,092			631,654			111			696,950			6,503

In the subsidiary JBS USA:

Civil Proceedings: Refer to class action lawsuits alleging violations of federal and state antitrust laws and laws addressing unfair competition, unjust enrichment, unusual business practices, and consumer protection laws in the sale of pork and chicken. In the nine month period ended September 30, 2024, a provision in the amount of US$81,226 (equivalent to R$442,527) and US$42.200 (equivalent to R$211,321 as of September 30,2023) was recognized. In the nine month period ended September 30, 2024 there was a payment of US$68,640(equivalent to R$373,958) and US$90.300 (equivalent to R$452,186 as of September 30,2023), leaving the provisioned amount of US$210,056 (equivalent to R$1,144,406) and US$126,140 (equivalent to R$631,659 as of September 30,2023).

The Company, together with its legal department and hired external offices, continues to monitor the developments of the antitrust legal proceedings and understand that the accounting provisions measured and known up to the date of approval of these financial statements are sufficient for risk coverage.

In Consolidated - possible lawsuits:

In the nine month period ended September 30, 2024, the Company did not identify any relevant changes in the amount of lawsuits whose probability of loss is possible.

36

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

20 Equity

a. Share capital: Share capital on September 30, 2024 was R$23,576,206 (R$23,576,206 at December 31, 2023), represented by 2,218,116,370 common shares, having no nominal value.

b. Tax incentive reserve: The Company and its subsidiaries have grants granted by state governments, such as partial and full reduction of the tax base of certain goods in its production chain, in accordance with the regulations of each state and presumed ICMS tax credits. The appropriated amounts of these tax incentives as income in income are excluded in the calculation of taxes on income when the requirements set forth in current legislation are met.

At the nine month period ended September 30, 2024, the Company and its subsidiaries calculated the amount of government grants totaling R$7,97 billion, of which R$3,87 billion will be recognized in the tax incentive reserve at the year-end financial statements, as the Company calculates enough accumulated profit.

c. Distribution of interim dividends: On August 13, 2024, the Company approved the distribution of interim dividends from the profit reserves in the amount of R$4,44 billion, equivalent to R$2.00 per ordinary share on June 30, 2024, to be distributed to the shareholders. The interim dividends was distributed on October 7, 2024.

21 Net revenue

	Company												Consolidated
	Nine month period ended September 30,						Three month period ended September 30,						Nine month period ended September 30,						Three month period ended September 30,
	2024			2023			2024			2023			2024			2023			2024			2023
GROSS REVENUE
Sales of products and services
Domestic sales		25,505,930			22,743,164			9,117,859			7,945,427			233,032,764			209,048,897			84,777,946			71,076,830
Export sales		21,213,958			16,903,540			8,523,320			6,124,198			77,267,833			67,585,006			29,184,751			23,581,882
		46,719,888			39,646,704			17,641,179			14,069,625			310,300,597			276,633,903			113,962,697			94,658,712
SALES DEDUCTION
Returns and discounts		(1,394,362	)		(1,260,699	)		(474,561	)		(417,888	)		(6,906,628	)		(6,362,416	)		(2,444,416	)		(2,218,612	)
Sales taxes		(847,493	)		(742,724	)		(299,520	)		(273,220	)		(3,142,711	)		(2,795,663	)		(1,020,424	)		(1,030,636	)
		(2,241,855	)		(2,003,423	)		(774,081	)		(691,108	)		(10,049,339	)		(9,158,079	)		(3,464,840	)		(3,249,248	)
NET REVENUE		44,478,033			37,643,281			16,867,098			13,378,517			300,251,258			267,475,824			110,497,857			91,409,464

21.1 Customer contract balances

Customer contract liabilities relate to payments received in advance of satisfying the performance obligation under the contract. A contract liability is recognized when the Company has an obligation to transfer products to a customer from whom the consideration has already been received. The recognition of the contractual liability occurs at the time when the consideration is received and settled. The Company recognizes revenue upon fulfilling the related performance obligation. Contract liabilities are presented as advances from customers in the balance sheet.

			Company						Consolidated
	Note		September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
Trade accounts receivable		4		3,590,711			2,575,423			18,480,150			16,416,149
Contract liabilities				(949,094	)		(652,228	)		(1,227,812	)		(1,571,478	)
Total customer contract revenue				2,641,617			1,923,195			17,252,338			14,844,671

37

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

22 Net finance income (expense)

	Company												Consolidated
	Nine month period ended September 30,						Three month period ended September 30,						Nine month period ended September 30,						Three month period ended September 30,
	2024			2023			2024			2023			2024			2023			2024			2023
Exchange rate variation		217,320			386,885			(271,784	)		186,648			398,510			520,625			(381,142	)		223,759
Fair value adjustments on derivatives		(1,215,106	)		119,358			184,497			(242,893	)		(1,807,506	)		(279,297	)		303,925			(278,004	)
Interest expense (1)		(1,985,787	)		(2,980,155	)		(692,438	)		(860,889	)		(6,525,551	)		(6,237,591	)		(2,214,924	)		(2,092,755	)
Interest income (2)		366,888			391,276			119,225			137,088			1,600,943			1,123,863			547,154			378,386
Bank fees and others		(335,703	)		(117,773	)		(152,121	)		(50,512	)		(524,344	)		(188,719	)		(257,408	)		(70,524	)
		(2,952,388	)		(2,200,409	)		(812,621	)		(830,558	)		(6,857,948	)		(5,061,119	)		(2,002,395	)		(1,839,138	)
Financial income		1,040,489			1,140,412			303,722			323,736			2,706,280			1,719,701			851,079			602,145
Financial expense		(3,992,877	)		(3,340,821	)		(1,116,343	)		(1,154,294	)		(9,564,228	)		(6,780,820	)		(2,853,474	)		(2,441,283	)
		(2,952,388	)		(2,200,409	)		(812,621	)		(830,558	)		(6,857,948	)		(5,061,119	)		(2,002,395	)		(1,839,138	)

⁽¹⁾ For the nine month period ended September 30, 2024 and 2023, the amounts of R$908,175 and R$1,322,522, respectively, in the Company and R$4,519,473 and R$4,260,522, in the Consolidated refers to interest expenses from loans and financings expenses recognized under the caption “Interest expense”.

⁽²⁾ For the nine month period ended September 30, 2024 and 2023, the amounts of R$107,651 and R$116,509, respectively, in the Company and R$730,235 and R$307,483, respectively, in the Consolidated refers to interest income from short investments recognized under the caption “Interest income”.

23 Earnings (loss) per share

Basic and diluted: There were no changes in the basic earnings (loss) per share calculation assumptions since the disclosed financial statements from December 31, 2023.

	Nine month period ended September 30,					Three month period ended September 30,
	2024		2023			2024		2023
Net income attributable to Company shareholders		7,203,751		(1,143,576	)		3,842,538		572,651
Weighted average common shares outstanding		2,218,116,370		2,218,116,370			2,218,116,370		2,218,116,370
Weighted average - common shares outstanding		2,218,116,370		2,218,116,370			2,218,116,370		2,218,116,370
Basic and diluted earnings (losses) per share - (R$)		3.25		(0.52	)		1.73		0.26

38

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

24 Operating segments and information by geographic area

The Company’s Management has defined the reportable operating segments based on the reports used for strategic decision-making, analyzed by the chief operating decision maker (CODM) - the Company’s president (CEO). The Company has seven reportable segments: Brazil, Seara, North American Beef, US Pork, PPC Chicken, Australia and Others. The segment’s operating profit or loss is assessed by the CODM, based on adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization).

Adjusted EBITDA consists of profit or loss before taxes, applying the same accounting policies described in these financial statements, except for the following adjustments as described below: exclusion of equity in the income statement, exclusion of financial result, exclusion of depreciation and amortization expenses, exclusion of expenses with DOJ and antitrust agreements described in note 19, exclusion of donations and expenses with social programs, exclusion of asset impairment, exclusion of expenses with restructuring projects, exclusion of claims - Rio Grande do Sul, payment and tax installments - special program and exclusion of some other revenues (expenses).

There are no changes in the structure of operating segments and geographic reporting since the disclosed financial statements from December 31, 2023.

The information by consolidated operational segments is as follows:

Nine month period ended September 30, 2024
	Brazil		Seara		Beef North America		Pork USA		Pilgrim’s Pride		Australia		Others		Total reportable segments		Elimination (1)			Total
Net revenue		47,839,069		34,078,794		93,911,868		32,067,010		70,757,072		25,676,963		2,159,276		306,490,052		(6,238,794	)		300,251,258
Adjusted EBITDA (2)		3,918,370		5,769,227		753,412		4,173,207		10,865,978		2,758,635		18,791		28,257,620		(6,729	)		28,250,891

Nine month period ended September 30, 2023
	Brazil		Seara		Beef North America		Pork USA		Pilgrim’s Pride		Australia		Others			Total reportable segments		Elimination (1)			Total
Net revenue		40,626,948		30,847,785		85,181,321		28,081,100		64,196,657		22,404,287		3,229,244			274,567,342		(7,091,518	)		267,475,824
Adjusted EBITDA (2)		1,456,614		1,133,285		1,052,054		1,638,866		5,449,311		1,357,407		(36,766	)		12,050,771		(9,033	)		12,041,738

Three month period ended September  30, 2024
	Brazil		Seara		Beef North America		Pork USA		Pilgrim’s Pride		Australia		Others			Total reportable segments		Elimination (1)			Total
Net revenue		18,057,962		12,166,437		35,006,173		11,326,438		25,403,859		9,896,266		843,556			112,700,691		(2,202,834	)		110,497,857
Adjusted EBITDA (2)		2,094,383		2,557,784		650,737		1,368,030		4,302,639		966,825		(473	)		11,939,925		—			11,939,925

Three month period ended September 30, 2023
	Brazil		Seara		Beef North America		Pork USA		Pilgrim’s Pride		Australia		Others			Total reportable segments		Elimination (1)			Total
Net revenue		14,441,141		10,207,775		29,054,246		9,890,497		21,261,373		7,687,894		686,660			93,229,586		(1,820,122	)		91,409,464
Adjusted EBITDA (2)		484,386		566,440		502,726		1,020,860		2,195,034		664,625		(21,658	)		5,412,413		(3,011	)		5,409,402

⁽¹⁾ Includes intercompany and intersegment transactions.

39

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

⁽²⁾ The Adjusted EBITDA and reconciled with the consolidated profit before consolidated income tax as follows below:

	Nine month period ended September 30,						Three month period ended September 30,
	2024			2023			2024			2023
Profit before Income Tax		11,260,855			(1,485,939	)		6,638,512			791,035
Equity		(1,798	)		(49,087	)		(21,611	)		(19,661	)
Financial result		6,857,948			5,061,119			2,002,395			1,839,138
Operating profit		18,117,005			3,526,093			8,619,296			2,610,512
Depreciation and amortization		8,557,129			7,865,984			3,010,283			2,615,613
Antitrust agreements (1)		421,449			211,536			3,882			51,245
Donations and social programs (2)		93,395			55,286			19,915			18,050
Impairment assets (7)		—			108,300			—			(4,434	)
Restructuring (3)		439,144			193,390			170,993			4,587
Accident - Rio Grande do Sul (4)		105,053			—			72,600			—
Tax payments and installments - Extraordinary (5)		426,579			—			—			—
Other operating income (expense), net (6)		91,137			81,149			42,956			113,829
Total Adjusted EBITDA for operating segments - with elimination		28,250,891			12,041,738			11,939,925			5,409,402
Elimination reversal		6,729			9,033			—			3,011
Total Adjusted EBITDA for reportable segments		28,257,620			12,050,771			11,939,925			5,412,413

⁽¹⁾ Refers to the agreements entered by JBS USA and its subsidiaries.

⁽²⁾ Refers to the donations, as described in Note 25 – Expenses by nature.

⁽³⁾ Refers to multiple restructuring initiatives (including related impairment), primarily those in the indirect subsidiary Pilgrim’s Pride Corporation (PPC), which are registered as Other expenses, as well as other non-significant restructuring projects that are registered as General and administrative expenses.

⁽⁴⁾ Refers to the loss resulting from the floods that occurred in Rio Grande do Sul.

⁽⁵⁾ Refers to the special program for paying tax processes in installments with exemption from fines and reduced interest.

⁽⁶⁾ Refers to several adjustments basically in JBS USA’s jurisdiction such as third-party advisory expenses acquisitions, marketing of social programs, insurance claims, among others.

⁽⁷⁾ Refers to the impairment of assets of the Planterra business unit, which had its activities terminated during the 2023 fiscal year.

40

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

For additional information, the net revenue and total assets are present below segregated by geographic area.

Nine month period ended September 30, 2024
	North and Central America (2)		South America		Australia		Europe		Others		Total reportable segments		Intercompany elimination (1)			Total
Net revenue		176,409,104		82,981,054		23,500,639		23,671,178		1,439,330		308,001,305		(7,750,047	)		300,251,258
Total assets		97,250,661		83,639,920		22,997,961		30,541,888		1,609,305		236,039,735		(9,464,063	)		226,575,672

Nine month period ended September 30, 2023
	North and Central America (2)		South America		Australia		Europe		Others		Total reportable segments		Intercompany elimination (1)			Total
Net revenue		158,196,178		66,791,584		20,827,112		22,259,364		953,908		269,028,146		(1,552,322	)		267,475,824
Total assets		169,391,117		88,387,080		18,035,723		25,687,713		10,333,315		311,834,948		(97,320,392	)		214,514,556

Three month period ended September 30, 2024
	North and Central America (2)		South America		Australia		Europe		Others		Total reportable segments		Intercompany elimination (1)			Total
Net revenue		64,510,579		30,626,022		9,127,711		8,504,931		541,213		113,310,456		(2,812,599	)		110,497,857

Three month period ended September 30, 2023
	North and Central America (2)		América do Sul		Austrália		Europa		Outros		Total reportable segments		Intercompany elimination (1)			Total
Net revenue		53,586,027		23,207,199		7,214,114		7,339,259		392,501		91,739,100		(329,636	)		91,409,464

⁽¹⁾ Includes intercompany and intersegment transactions.

⁽²⁾ Including the holdings located in Europe that are part of the North American operation.

41

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

25 Expenses by nature

The Company’s policy is to present expenses by function on the consolidated statement of income (loss). Expenses by nature are disclosed below:

	Company												Consolidated
	Nine month period ended September 30,						Three month period ended September 30,						Nine month period ended September 30,						Three month period ended September 30,
	2024			2023			2024			2023			2024			2023			2022			2021
Cost of sales
Cost of inventories, raw materials and production inputs		(32,780,531	)		(29,802,125	)		(11,934,343	)		(10,529,540	)		(214,851,630	)		(204,252,299	)		(77,996,552	)		(68,795,014	)
Salaries and benefits		(2,526,936	)		(1,923,489	)		(907,842	)		(642,889	)		(32,438,656	)		(27,792,595	)		(11,650,757	)		(9,293,106	)
Depreciation and amortization		(560,358	)		(377,294	)		(206,396	)		(120,960	)		(7,579,822	)		(6,876,684	)		(2,662,236	)		(2,268,745	)
		(35,867,825	)		(32,102,908	)		(13,048,581	)		(11,293,389	)		(254,870,108	)		(238,921,578	)		(92,309,545	)		(80,356,865	)
Selling
Freights and selling expenses		(3,046,076	)		(2,346,524	)		(1,127,460	)		(856,711	)		(14,838,943	)		(14,244,185	)		(4,675,740	)		(4,609,830	)
Salaries and benefits		(392,541	)		(333,752	)		(139,005	)		(114,994	)		(2,231,797	)		(1,116,042	)		(1,411,825	)		(381,038	)
Depreciation and amortization		(20,768	)		(67,302	)		(6,221	)		(22,881	)		(278,718	)		(242,631	)		(102,105	)		(81,030	)
Advertising and marketing		(161,980	)		(110,141	)		(70,154	)		(34,289	)		(1,211,371	)		(1,147,634	)		(436,570	)		(364,911	)
Commissions		(122,948	)		(73,447	)		(55,656	)		(28,854	)		(278,186	)		(212,129	)		(110,729	)		(76,335	)
Net impairment losses		(25,128	)		(2,138	)		(1,053	)		(11,137	)		(36,387	)		(1,332	)		(14,882	)		3,214
		(3,769,441	)		(2,933,304	)		(1,399,549	)		(1,068,866	)		(18,875,402	)		(16,963,953	)		(6,751,851	)		(5,509,930	)
General and administrative
Salaries and benefits		(942,245	)		(839,233	)		(366,252	)		(356,360	)		(4,034,201	)		(4,359,486	)		(1,582,531	)		(1,575,463	)
Fees, services held and general expenses		(1,089,770	)		(816,118	)		(237,973	)		(309,149	)		(2,880,373	)		(2,734,133	)		(851,585	)		(996,345	)
Depreciation and amortization		(140,868	)		(194,690	)		(37,109	)		(72,713	)		(698,589	)		(746,669	)		(245,942	)		(265,839	)
DOJ and Antitrust agreements		—			—			—			—			(421,449	)		(211,536	)		(3,882	)		(51,245	)
Donations and social programs (1)		(93,395	)		(55,286	)		(19,915	)		(22,913	)		(93,395	)		(55,286	)		(19,915	)		(18,050	)
		(2,266,278	)		(1,905,327	)		(661,249	)		(761,135	)		(8,128,007	)		(8,107,110	)		(2,703,855	)		(2,906,942	)

⁽¹⁾ Refers to donations made to Instituto J&F regarding improvements on school’s building, the social program “Fazer o Bem Faz Bem” created by the company to support actions for social transformation where the Company is present and donations to the JBS Fund For The Amazon.

The Company incurred expenses with internal research and development, in the amount of R$4,435 (R$3,289 at September 30, 2023), in the Company and R$22,025 (R$29,482 at September 30, 2023), in the Consolidated.

42

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

25.1 Other income and expenses

Other income: As of September 30, 2024, the Company has recorded in other income the amount of R$316,284 (R$588,084 as of September 30, 2023), of which mainly refers to the gain on the sale of assets, extemporaneous tax credits, receipt of claim, among other insignificant items.

Other expenses: As of September 30, 2024, the Company has recorded in other expenses the amount of R$577,020 (R$545,174 as of September 30, 2023), of which mainly refer to restructuring expenses, loss on sale of assets, among other non-significant items.

Restructuring expenses

The Company recorded in other expenses the amount of R$434,443 (R$193,423 as of September 30, 2023) related to restructuring initiatives in its indirect subsidiary Pilgrim’s Pride Corporation (“PPC”) in the reportable segment Europe. The purpose of these activities is to integrate core operations and reallocate processing capacity among production facilities, resulting in the closure of some facilities in the Europe reportable segment.

For the nine month period ended September 30, 2024, PPC has recognized the following expenses and paid the following amounts related to restructuring initiatives:

	Nine month period ended September 30, 2024
	Provisions		Expenses		Payments
Pilgrim’s Europe Central		14,007		143,324		122,621
Pilgrim’s Food Masters		81,612		186,383		76,521
Pilgrim’s Pride Ltd.		12,743		104,736		12,506
Moy Park		10,962		—		4,603
Total		119,324		434,443		216,251

	Three month period ended September 30, 2024
	Provisions			Expenses		Payments
Pilgrim’s Europe Central		(1,180	)		21,033		22,747
Pilgrim’s Food Masters		25,762			83,856		31,953
Pilgrim’s Pride Ltd.		6,478			66,104		8,917
Moy Park		(751	)		—		1,165
Total		30,309			170,993		64,782

These expenses are recorded under other expenses in the income statement for the period.

The following table reconciles liabilities and reserves associated with each restructuring initiative from its inception through September 30, 2024. These balances are accrued in other current liabilities.

	December 31, 2023		Complement		Payments			Exchange rate variation		September 30, 2024 (*)
Labor termination		17,676		215,604		(167,648	)		8,484		74,116
Termination		7,732		10,910		(16,195	)		560		3,007
Adjustment to recoverable value of assets		1,738		144,422		(146,268	)		109		1
Others		22,419		63,507		(47,729	)		4,003		42,200
Total		49,565		434,443		(377,840	)		13,156		119,324

43

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

	December 31, 2022		Complement		Payments			Exchange rate variation			September 30, 2023 (*)
Labor termination		32,047		104,349		(130,445	)		(432	)		5,519
Termination		4,811		6,623		(554	)		(203	)		10,677
Adjustment to recoverable value of assets		15,690		25,061		(41,201	)		2,173			1,723
Others		34,051		57,391		(57,250	)		(3,149	)		31,043
Total		86,599		193,424		(229,450	)		(1,611	)		48,962

(*) Recognized in each of its respective balance accounts.

26 Risk management and financial instruments

Financial instruments are recognized in the consolidated financial statements as follows:

			Company						Consolidated
	Notes		September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
Assets
Fair value through profit or loss (1)
Financial investments		3		937,923			3,594,468			15,157,808			12,791,962
National treasury bills		3		354,426			397,495			587,235			1,020,138
Derivative assets				9,654			439,444			499,597			821,741
Loans and receivables at amortized cost (2)
Cash at banks		3		3,182,986			531,461			12,201,061			8,863,520
Margin cash		3		—			—			588,435			88,068
Trade accounts receivable		4		3,590,711			2,575,423			18,480,150			16,416,149
Related party receivables		8		626,085			1,807,877			590,511			573,955
Total				8,701,785			9,346,168			48,104,797			40,575,533
Liabilities
Amortized cost
Loans and financing		16		(7,712,259	)		(13,248,101	)		(103,285,283	)		(96,821,825	)
Trade accounts payable and supply chain finance		15		(6,242,113	)		(5,934,371	)		(31,603,180	)		(30,040,844	)
Related party payables		8		(4,299,619	)		(6,402,295	)		—			—
Lease liabilities		12		(225,860	)		(151,030	)		(9,652,005	)		(8,913,933	)
Other financial liabilities				(380,625	)		(473,930	)		(381,441	)		(503,702	)
Fair value through profit or loss
Derivative liabilities				(404,838	)		(42,513	)		(764,772	)		(698,361	)
Total				(19,265,314	)		(26,252,240	)		(145,686,681	)		(136,978,665	)

⁽¹⁾ CDBs are updated at the effective rate but have a really short-term and negotiated with financial institutions, and their recognition is similar to fair value. The national treasury bill is recognized according to market value.

⁽²⁾ Loans and receivables are classified as amortized cost, but without any change in their nature or business model. The accounts receivable are short-term and net from expected losses.

44

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Fair value of assets and liabilities through profit or loss: The Company and its subsidiaries determine fair value measurements in accordance with the hierarchical levels that reflect the significance of the inputs used in the measurement, with the exception of those maturing at short term, equity instruments without an active market and contracts with discretionary characteristics that the fair value can not be measured reliably, according to the following levels:

Level 1 - Quoted prices in active markets (unadjusted) for identical assets or liabilities;

Level 2 - Inputs other than Level 1, in which prices are quoted for similar assets and liabilities, either directly by obtaining prices in active markets or indirectly through valuation techniques that use data from active markets;

	Company
	September 30, 2024						December 31, 2023
	Level 1		Level 2		Total		Level 1		Level 2		Total
Financial assets
Financial investments		—		937,923		937,923		1,000,451		2,594,017		3,594,468
National treasury bills		354,426		—		354,426		397,495		—		397,495
Derivative assets		—		9,654		9,654		—		439,444		439,444
Financial liabilities
Derivative liabilities		—		404,838		404,838		—		42,513		42,513

	Consolidated
	September 30, 2024						December 31, 2023
	Level 1		Level 2		Total		Level 1		Level 2		Total
Financial assets
Financial investments		—		15,157,808		15,157,808		1,000,451		11,791,511		12,791,962
National treasury bills		587,235		—		587,235		1,020,138		—		1,020,138
Derivative assets		—		499,597		499,597		—		821,741		821,741
Financial liabilities
Derivative liabilities		—		764,772		764,772		—		698,361		698,361

45

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Fair value of assets and liabilities carried at amortized cost: The fair value of the Notes under Rule 144-A and Regulation S, are estimated using the closing sale price of these securities informed by a financial newswire on September 30, 2024 and December 31, 2023, considering there is an active market for these financial instruments. The book value of the remaining fixed-rate loans approximates fair value since the interest rate market, the Company’s credit quality, and other market factors have not significantly changed since entering into the loans. The book value of variable-rate loans and financings approximates fair value given the interest rates adjust for changes in market conditions and the quality of the Company’s credit rating has not substantially changed. For all other financial assets and liabilities, book value approximates fair value due to the short duration of the instruments. The following details the estimated fair value of loans and financings:

	Consolidated
	September 30, 2024							December 31, 2023
Description	Principal		Price (% of the Principal)			Market Value of the Principal		Principal		Price (% of the Principal)			Market Value of the Principal
Notes 2,50% JBS Lux 2027		5,448,101		95.75	%		5,216,666		4,841,300		92.10	%		4,458,643
Notes 5,13% JBS Lux 2028		4,901,874		101.51	%		4,975,893		4,357,170		99.66	%		4,342,312
Notes 3,00% JBS Lux 2029		3,268,861		93.26	%		3,048,441		2,904,780		88.24	%		2,563,178
Notes 6,5% JBS Lux 2029		380,855		100.90	%		384,275		377,491		99.27	%		374,746
Notes 5,5% JBS Lux 2030		6,808,410		101.41	%		6,904,204		6,051,625		98.55	%		5,963,876
Notes 3,75% JBS Lux 2031		2,685,914		92.06	%		2,472,760		2,420,650		86.45	%		2,092,652
Notes 3,00% JBS Lux 2032		5,448,101		86.85	%		4,731,512		4,841,300		81.66	%		3,953,212
Notes 3,625% JBS Lux 2032		5,279,755		91.35	%		4,823,320		4,841,300		85.60	%		4,144,298
Notes 5,75% JBS Lux 2033		9,052,973		103.89	%		9,404,772		9,924,665		99.35	%		9,860,452
Notes 6,75% JBS Lux 2034		8,210,539		111.14	%		9,125,603		7,746,080		105.27	%		8,154,530
Notes 4,375% JBS Lux 2052		4,903,291		80.02	%		3,923,809		4,357,170		74.36	%		3,239,817
Notes 6,50% JBS Lux 2052		8,433,660		106.93	%		9,018,450		7,504,015		100.71	%		7,557,218
Notes 7.25% JBS Lux 2053		4,903,291		116.93	%		5,733,614		4,357,170		109.34	%		4,764,129
Notes 4,25% PPC 2031		4,662,076		95.22	%		4,438,996		4,841,300		90.27	%		4,369,999
Notes 3,5% PPC 2032		4,903,291		88.52	%		4,340,491		4,357,170		84.47	%		3,680,371
Notes 6,25% PPC 2033		5,339,139		106.31	%		5,675,878		4,841,300		102.90	%		4,981,794
Notes 6,875% PPC 2034		2,724,050		110.97	%		3,022,743		2,420,646		108.05	%		2,615,416
		87,354,181					87,241,427		80,985,132					77,116,643

46

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Risk management:

The Company during the regular course of its operations is exposed to a variety of financial risks that include the effects of changes in market prices, (including foreign exchange, interest rate risk and commodity price risk), credit risk and liquidity risk. Such risks are fully disclosed in the financials statements at December 31, 2023. There were no changes in the nature of these risks in the current period. Below are the risks and operations to which the Company is exposed and a sensitivity analysis for each type of risk, consisting in the presentation of the effects in the finance income (expense), net, when subjected to possible changes, of 25% to 50%, in the relevant variables for each risk. For each probable scenario, the Company utilizes the Value at Risk Methodology (VaR),for the confidence interval (C.I.) of 99% and a horizon of one day.

a. Interest rate risk

The Company understands that the quantitative data referring to the Company’s interest rate exposure risk on September 30, 2024 and December 31, 2023, are in accordance with the Financial and Commodity Risk Management Policy and are representative of the exposure incurred during the period. For informational purposes and in accordance with our Financial and Commodities Risk Management Policy, the notional amounts of assets and liabilities exposed to floating interest rates are presented below:

	Company						Consolidated
	September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
Net exposure to the CDI rate:
CDB-DI (Bank certificates of deposit)		1,166,561			75,631			4,868,712			4,567,894
Margin cash		125,788			64,754			712,357			152,822
Related party transactions		(4,274,494	)		1,223,516			—			3,019
Credit note - export		(5,642	)		(1,046,272	)		(11,597	)		(1,053,700	)
CRA - Agribusiness Credit Receivable Certificates		—			(293,753	)		—			(293,753	)
Rural - Credit note		—			—			—			(5,847	)
Subtotal		(2,987,787	)		23,876			5,569,472			3,370,435
Derivatives (Swap)		(8,163,499	)		(5,992,578	)		(8,163,499	)		(6,910,347	)
Total		(11,151,286	)		(5,968,702	)		(2,594,027	)		(3,539,912	)
Liabilities exposure to the LIBOR rate:
Margin cash		—			—			—			250,540
CRA - Agribusiness Credit Receivable Certificates		(6,511,993	)		(10,174,868	)		(6,511,993	)		(10,174,868	)
Related party transactions		590,511			570,936			590,511			570,936
Treasury bills		—			—			198,152			134,183
Subtotal		(5,921,482	)		(9,603,932	)		(5,723,330	)		(9,219,209	)
Derivatives (Swap)		6,204,890			6,892,396			6,204,891			6,892,396
Total		283,408			(2,711,536	)		481,561			(2,326,813	)
Net exposure to the IPCA rate:
Working capital - Reais		—			(3,734	)		—			(3,734	)
Total		—			(3,734	)		—			(3,734	)
Liabilities exposure to the SOFR rate:
Prepayment		—			(870,835	)		—			(1,360,264	)
Working capital - USD		(14,617	)		(14,110	)		(14,617	)		(14,110	)
Total		(14,617	)		(884,945	)		(14,617	)		(1,374,374	)
Assets exposure to the CPI rate:
Margin cash		—			—			—			237,921
Total		—			—			—			237,921

47

 

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Sensitivity analysis as of September 30, 2024:

					Scenario (I) VaR 99% I.C. 1 day									Scenario (II) Interest rate variation - 50%									Scenario (III) Interest rate variation - 100%
Contracts		Current						Effect on income									Effect on income									Effect on income
exposure	Risk	scenario			Rate			Company			Consolidated			Rate			Company			Consolidated			Rate			Company			Consolidated
CDI	Increase		10.65	%		10.70	%		(5,130	)		(1,182	)		15.98	%		(593,806	)		(136,794	)		21.30	%		(1,187,612	)		(273,588	)

					Scenario (I) VaR 99% I.C. 1 day									Scenario (II) Interest rate variation - 25%									Scenario (III) Interest rate variation - 50%
Contracts		Current						Effect on income									Effect on income									Effect on income
exposure	Risk	scenario			Rate			Company			Consolidated			Rate			Company			Consolidated			Rate			Company			Consolidated
IPCA	Decrease		4.24	%		4.23	%		(17	)		(29	)		3.18	%		(3,005	)		(5,106	)		2.12	%		(6,011	)		(10,212	)
SOFR	Increase		4.96	%		4.96	%		(1	)		(1	)		6.20	%		(181	)		(181	)		7.44	%		(363	)		(363	)
									(18	)		(30	)					(3,186	)		(5,287	)					(6,374	)		(10,575	)

			Company
			September 30, 2024										December 31, 2023
Instrument	Risk factor	Maturity	Notional		Fair value (Asset) - R$		Fair value (Liability) - R$			Fair value			Notional		Fair value (Asset) - R$		Fair value (Liability) - R$			Fair value
	IPCA	2024		—		—		—			—			537,534		689,751		(540,408	)		149,343
	IPCA	2027		978,410		1,004,553		(1,031,094	)		(26,541	)		387,000		457,602		(413,456	)		44,146
	IPCA	2028		—		—		—			—			442,000		526,622		(484,293	)		42,329
	IPCA	2030		—		—		—			—			1,400,000		1,697,548		(1,590,808	)		106,740
	IPCA	2031		1,460,217		1,709,370		(1,731,249	)		(21,879	)		1,398,524		1,616,904		(1,578,406	)		38,498
Swap	IPCA	2032		1,146,025		1,242,196		(1,316,260	)		(74,064	)		425,166		501,657		(510,557	)		(8,900	)
	IPCA	2034		800,000		828,939		(843,923	)		(14,984	)		—		—		—			—
	IPCA	2036		—		—		—			—			91,135		113,710		(119,336	)		(5,626	)
	IPCA	2037		1,185,591		1,419,832		(1,580,328	)		(160,496	)		1,040,017		1,288,602		(1,295,723	)		(7,121	)
	IPCA	2038		881,290		934,905		(955,211	)		(20,306	)		—		—		—			—
	IPCA	2039		129,136		136,560		(137,335	)		(775	)		—		—		—			—
	IPCA	2044		500,000		533,654		-568,099			(34,445	)		—		—		—			—
				7,080,669		7,810,009		(8,163,499	)		(353,490	)		5,721,376		6,892,396		(6,532,987	)		359,409

48

 

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

			Company
			September 30, 2024										December 31, 2023
Instrument	Risk factor	Maturity	Notional		Fair value (Asset) - R$		Fair value (Liability) - R$			Fair value			Notional		Fair value (Asset) - R$		Fair value (Liability) - R$			Fair value
	CDI	2024		—		—		—			—			880,000		915,329		(917,770	)		(2,441	)
	IPCA	2024		—		—		—			—			537,534		689,751		(540,408	)		149,343
	IPCA	2027		978,410		1,004,553		(1,031,094	)		(26,541	)		387,000		457,602		(413,456	)		44,146
	IPCA	2028		—		—		—			—			442,000		526,622		(484,293	)		42,329
	IPCA	2030		—		—		—			—			1,400,000		1,697,548		(1,590,808	)		106,740
	IPCA	2031		1,460,217		1,709,370		(1,731,249	)		(21,879	)		1,398,524		1,616,904		(1,578,406	)		38,498
Swap	IPCA	2032		1,146,025		1,242,196		(1,316,260	)		(74,064	)		425,166		501,657		(510,557	)		(8,900	)
	IPCA	2034		800,000		828,939		(843,923	)		(14,984	)		—		—		—			—
	IPCA	2036		—		—		—			—			91,135		113,710		(119,336	)		(5,626	)
	IPCA	2037		1,185,591		1,419,832		(1,580,328	)		(160,496	)		1,040,017		1,288,602		(1,295,723	)		(7,121	)
	IPCA	2038		881,290		934,905		(955,211	)		(20,306	)		—		—		—			—
	IPCA	2039		129,136		136,560		(137,335	)		(775	)		—		—		—			—
	IPCA	2044		500,000		533,654		(568,099	)		(34,445	)		—		—		—			—
				7,080,669		7,810,009		(8,163,499	)		(353,490	)		6,601,376		7,807,725		(7,450,757	)		356,968

b. Exchange rate risk:

Below are presented the risks related to the most significant exchange rates fluctuation given the relevance of these currencies in the Company’s operations and the stress analysis scenarios and VaR to measure the total exposure as well as the cash flow risk with B3 and the Chicago Mercantile Exchange. In the Consolidated, the Company discloses these exposures considering the fluctuations of a exchange rate in particular towards the functional currency of each subsidiary.

	Consolidated
	USD						EUR						GBP
	September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
OPERATING
Cash and cash equivalents		4,729,792			2,767,180			284,010			161,775			4,205			16,901
Trade accounts receivable		1,908,085			1,530,322			310,157			237,649			59,766			38,864
Sales orders (1)		—			2,345,443			—			257,417			—			81,782
Trade accounts payable		(311,100	)		(246,588	)		(52,654	)		(27,667	)		(23	)		(237	)
Operating subtotal		6,326,777			6,396,357			541,513			629,174			63,948			137,310
FINANCIAL
Loans and financing		(799,404	)		(1,464,859	)		(12,484	)		(15,579	)		—			—
Financial subtotal		(799,404	)		(1,464,859	)		(12,484	)		(15,579	)		—			—
Operating financial subtotal		5,527,373			4,931,498			529,029			613,595			63,948			137,310
Related parties transaction, net		(563,151	)		—			—			—			—			—
Total exposure		4,964,222			4,931,498			529,029			613,595			63,948			137,310
DERIVATIVES
Future contracts		590,783			697,909			—			(481,644	)		(313,006	)		(152,117	)
Non-Deliverable Forwards (NDF´s)		(4,358,480	)		(3,582,562	)		—			—			—			—
Total derivatives		(3,767,697	)		(2,884,653	)		—			(481,644	)		(313,006	)		(152,117	)
NET EXPOSURE IN R$		1,196,525			2,046,845			529,029			131,951			(249,058	)		(14,807	)

49

 

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

	Consolidated
	USD						EUR						GBP						MXN					AUD
	September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023			September 30, 2024		December 31, 2023			September 30, 2024			December 31, 2023
OPERATING
Cash and cash equivalents		11,731,290			7,604,779			485,732			329,956			77,907			97,319			—		1,314,427			16			203
Trade accounts receivable		3,741,674			2,806,266			805,675			715,733			358,850			240,823			—		649,281			5,214			1,167
Sales orders (1)		—			4,437,512			—			356,147			—			1,053,024			—		—			—			—
Trade accounts payable		(1,447,086	)		(846,168	)		(253,685	)		(362,919	)		(85,841	)		(76,715	)		—		(1,294,723	)		(14,546	)		(1,549	)
Purchase orders		—			(274,549	)		—			(87,203	)		—			—			—		—			—			—
Operating subtotal		14,025,878			13,727,840			1,037,722			951,714			350,916			1,314,451			—		668,985			(9,316	)		(179	)
FINANCIAL
Margin cash		1,865			—			—			—			—			—			—		—			—			—
Advances to customers		(18,437	)		(27,074	)		(11,613	)		(8,770	)		(1,057	)		(2,474	)		—		—			—			—
Loans and financing		(6,029,058	)		(1,485,299	)		(12,484	)		(15,579	)		(71,859	)		—			—		—			—			—
Financial subtotal		(6,045,630	)		(1,512,373	)		(24,097	)		(24,349	)		(72,916	)		(2,474	)		—		—			—			—
Operating financial subtotal		7,980,248			12,215,467			1,013,625			927,365			278,000			1,311,977			—		668,985			(9,316	)		(179	)
Total exposure		7,980,248			12,215,467			1,013,625			927,365			278,000			1,311,977			—		668,985			(9,316	)		(179	)
DERIVATIVES
Future contracts		1,974,870			(1,214,139	)		—			(663,598	)		(349,506	)		(213,703	)		—		—			—			—
Deliverable Forwards (DF´s)		(2,659,567	)		(1,926,954	)		392,824			325,834			(78,257	)		(69,565	)		—		—			8,058			13,778
Non-Deliverable Forwards (NDF´s)		(5,735,929	)		(6,326,417	)		(134,644	)		24,550			(55,456	)		(470,206	)		—		—			—			—
Total derivatives		(6,420,626	)		(9,467,510	)		258,180			(313,214	)		(483,219	)		(753,474	)		—		—			8,058			13,778
NET EXPOSURE IN R$		1,559,622			2,747,957			1,271,805			614,151			(205,219	)		558,503			—		668,985			(1,258	)		13,599

⁽¹⁾ Sales orders, although not recorded on the Balance Sheet, were part of the Company’s risk analysis and foreign exchange exposure assessment for the purpose of contracting hedging derivatives as of December 31, 2023.

50

 

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

b1. Sensitivity analysis and derivative financial instruments breakdown as of September 30, 2024:

b1.1 USD - American dollars (amounts in thousands of R$):

				Scenario (i) VaR 99% I.C. 1 day								Scenario (ii) Interest rate variation - 25%								Scenario (iii) Interest rate variation - 50%
		Closing				Effect on income								Effect on income								Effect on income
Exposure of R$	Risk	exchange rate		Exchange rate		Company			Consolidated			Exchange rate		Company			Consolidated			Exchange rate		Company			Consolidated
Operating	Appreciation		5.4481		5.3571		(105,723	)		(234,378	)		4.0861		(1,581,689	)		(3,506,457	)		2.7241		(3,163,389	)		(7,012,939	)
Financial	Depreciation		5.4481		5.3571		13,358			101,025			4.0861		199,850			1,511,402			2.7241		399,702			3,022,815
Derivatives	Depreciation		5.4481		5.3571		62,960			107,291			4.0861		941,921			1,605,150			2.7241		1,883,849			3,210,313
							(29,405	)		(26,062	)				(439,918	)		(389,905	)				(879,838	)		(779,811	)

Company

September 30, 2024

December 31, 2023

Instrument

Risk factor

Nature

Quantity

Notional (R$)

Fair value

Quantity

Notional (R$)

Fair value

Future Contract

American dollar

Long

11,817

590,841

(2,319

)

13,958

697,909

(467

)

Consolidated

September 30, 2024

December 31, 2023

Instrument

Risk factor

Nature

Quantity

Notional (R$)

Fair value

Quantity

Notional (R$)

Fair value

Future Contract

American dollar

Long

39,499

1,974,928

(1,739

)

52,199

(1,214,139

)

(10,061

)

			Company
			September 30, 2024								December 31, 2023
Instrument	Risk factor	Nature	Quantity			Notional (R$)			Fair value		Quantity			Notional (R$)			Fair value
Non-Deliverable Forwards	American dollar	Short		(800,000	)		(4,358,480	)		144,897		(740,000	)		(3,582,562	)		35,174

			Consolidated
			September 30, 2024								December 31, 2023
Instrument	Risk factor	Nature	Notional (USD)			Notional (R$)			Fair value		Notional (USD)			Notional (R$)			Fair value
Deliverable Forwards	American dollar	Short		(488,164	)		(2,659,567	)		142,381		(398,024	)		(1,926,954	)		141,124
Non-Deliverable Forwards	American dollar	Short		(1,052,831	)		(5,735,929	)		198,227		(1,306,760	)		(6,326,417	)		67,656

51

 

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

b1.2 EUR - EURO (amounts in thousands of R$):

				Scenario (i) VaR 99% I.C. 1 day								Scenario (ii) Interest rate variation - 25%								Scenario (iii) Interest rate variation - 50%
		Closing				Effect on income								Effect on income								Effect on income
Exposure of R$	Risk	exchange rate		Exchange rate		Company			Consolidated			Exchange rate		Company			Consolidated			Exchange rate		Company			Consolidated
Operating	Appreciation		6.0719		5.9828		(7,944	)		(15,223	)		4.5539		(135,378	)		(259,430	)		3.0360		(270,756	)		(518,861	)
Financial	Depreciation		6.0719		5.9828		183			353			4.5539		3,121			6,024			3.0360		6,242			12,048
Derivatives	Appreciation		6.0719		5.9828		—			(3,787	)		4.5539		—			(64,545	)		3.0360		—			(129,090	)
							(7,761	)		(18,657	)				(132,257	)		(317,951	)				(264,514	)		(635,903	)

			Company
			September 30, 2024								December 31, 2023
Instrument	Risk factor	Nature	Quantity			Notional (R$)			Fair value		Quantity			Notional (R$)			Fair value
Future Contract	Euro	Short		(5,155	)		(313,006	)		1,106		(9,000	)		(481,644	)		1,805

			Consolidated
			September 30, 2024									December 31, 2023
Instrument	Risk factor	Nature	Notional (EUR)			Notional (R$)			Fair value			Notional (EUR)			Notional (R$)			Fair value
Future Contract	Euro	Short		(5,155	)		(313,006	)		1,106			(5,600	)		(663,598	)		2,486
Deliverable Forwards	Euro	Long		64,695			392,824			(3,454	)		60,885			325,834			(9,126	)
Non-Deliverable Forwards	Euro	Short		(22,175	)		(134,644	)		3,699			4,587			24,550			(3,157	)

52

 

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

b1.3 GBP - British Pound (amounts in thousands of R$):

				Scenario (i) VaR 99% I.C. 1 day								Scenario (ii) Interest rate variation - 25%								Scenario (iii) Interest rate variation - 50%
		Closing				Effect on income								Effect on income								Effect on income
Exposure of R$	Risk	exchange rate		Exchange rate		Company			Consolidated			Exchange rate		Company			Consolidated			Exchange rate		Company			Consolidated
Operating	Appreciation		7.2999		7.4112		975			5,351			9.1249		15,987			87,729			10.9499		31,974			175,458
Financial	Depreciation		7.2999		7.4112		—			(1,112	)		9.1249		—			(18,229	)		10.9499		—			(36,458	)
Derivatives	Depreciation		7.2999		7.4112		(4,773	)		(7,369	)		9.1249		(78,252	)		(120,805	)		10.9499		(156,503	)		(241,610	)
							(3,798	)		(3,130	)				(62,265	)		(51,305	)				(124,529	)		(102,610	)

			Company
			September 30, 2024								December 31, 2023
Instrument	Risk factor	Nature	Notional (GBP)			Notional (R$)			Fair value		Notional (GBP)			Notional (R$)			Fair value
Future Contract	British pound	Short		(1,370	)		(100,009	)		111		(2,470	)		(152,117	)		761

			Consolidated
			September 30, 2024								December 31, 2023
Instrument	Risk factor	Nature	Notional (GBP)			Notional (R$)			Fair value		Notional (GBP)			Notional (R$)			Fair value
Future Contract	British pound	Short		(1,370	)		(100,009	)		111		(1,470	)		(213,703	)		1,069

			Consolidated
			September 30, 2024									December 31, 2023
Instrument	Risk factor	Nature	Notional (GBP)			Notional (R$)			Fair value			Notional (GBP)			Notional (R$)			Fair value
Deliverable Forwards	British pound	Short		(10,720	)		(78,257	)		(131	)		(11,296	)		(69,565	)		978
Non-Deliverable Forwards	British pound	Short		(7,597	)		(55,456	)		(376	)		(76,350	)		(470,206	)		315

53

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

b1.4 AUD - Australian Dollar (amounts in thousands of R$):

			Scenario (i) VaR 99% I.C. 1 day				Scenario (ii) Interest rate variation - 25%					Scenario (iii) Interest rate variation - 50%
		Closing exchange	Exchange	Effect on income			Exchange		Effect on income			Exchange		Effect on income
Exposure of R$	Risk	rate	rate	Consolidated			rate		Consolidated			rate		Consolidated
Operating	Depreciation	3.7777	3.8321		(134	)		4.7221		(2,329	)		5.6666		(4,658	)
Derivatives	Appreciation	3.7777	3.8321		116			4.7221		2,014			5.6666		4,029
					(18	)				(315	)				(629	)

Consolidated

September 30, 2024

December 31, 2023

Instrument

Risk factor

Nature

Notional (AUD)

Notional (R$)

Fair value

Notional (AUD)

Notional (R$)

Fair value

Deliverable Forwards

Australian dollar

Long

2,133

8,058

(33

)

4,190

13,778

(5

)

c. Commodity price risk

The Company operates globally (the entire livestock protein chain and related business) and during the regular course of its operations is exposed to price fluctuations in feeder cattle, live cattle, lean hogs, corn, soybeans, and energy, especially in the North American, Australian and Brazilian markets. Commodity markets are characterized by volatility arising from external factors including climate, supply levels, transportation costs, agricultural policies and storage costs, among others. The Risk Management Department is responsible for mapping the exposures to commodity prices of the Company and proposing strategies to the Risk Management Committee, in order to mitigate such exposures.

c1. Position balance in commodities (cattle) contracts of the Company:

	Company
EXPOSURE in Commodities (Cattle)	September 30, 2024			December 31, 2023
DERIVATIVES
Future contracts		(93,435	)		(491	)
Subtotal		(93,435	)		(491	)
NET EXPOSURE		(93,435	)		(491	)

54

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Sensitivity analysis:

				Scenario (i) VaR 99% I.C. 1 day					Scenario (ii) @ Variation - 25%					Scenario (ii) @ Variation - 50%
		Closing				Effect on income					Effect on income					Effect on income
Exposure	Risk	price		Price		Company			Price		Company			Price		Company
Derivatives	Appreciation		274.35		279.25		(1,668	)		342.94		(23,359	)		411.52		(46,717	)
							(1,668	)				(23,359	)				(46,717	)

Derivatives financial instruments breakdown:

			Company
			September 30, 2024									December 31, 2023
Instrument	Risk factor	Nature	Quantity			Notional			Fair  value			Quantity			Notional			Fair value
Future Contracts	Commodities (Cattle)	Short		(1,715	)		(93,435	)		(367	)		(6	)		(491	)		1

c2. Position balance in commodities (grain) derivatives financial instruments of Seara Alimentos:

	Seara Alimentos
EXPOSURE in Commodities (Grain)	September 30, 2024		December 31, 2023
OPERATING
Purchase orders		364,423		552,376
Subtotal		364,423		552,376
DERIVATIVES
Future contracts		273,017		—
Subtotal		273,017		—
NET EXPOSURE		637,440		552,376

Sensitivity analysis:

		Scenario (i) VaR 99% I.C. 1 day						Scenario (ii) Price variation - 25%						Scenario (ii) Price variation - 50%
					Effect on income						Effect on income						Effect on income
Exposure	Risk	Price			Seara Alimentos			Price			Seara Alimentos			Price			Seara Alimentos
Operating	Depreciation		(1.50	)%		(5,463	)		(25.00	)%		(91,106	)		(50.00	)%		(182,212	)
Derivatives	Depreciation		(1.50	)%		(4,093	)		(25.00	)%		(68,254	)		(50.00	)%		(136,509	)
						(9,556	)					(159,360	)					(318,721	)

Derivatives financial instruments breakdown:

Seara Alimentos

September 30, 2024

December 31, 2023

Instrument

Risk factor

Nature

Quantity

Notional

Fair value

Quantity

Notional

Fair  value

Future contracts

Commodities (Grains)

Long

7,852

273,017

996

—

—

—

55

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

c3. Hedge accounting of Seara Alimentos:

From the third quarter of 2021, the indirect subsidiary Seara Alimentos reviewed its hedge policies and started to apply hedge accounting in grain operations, aiming at bringing stability to the subsidiary’s results. The designation of these instruments is based on the guidelines outlined in the Financial and Commodity Risk Management Policy defined by the Risk Management Committee and approved by the Board of Directors.

Financial instruments designated for hedge accounting were classified as cash flow hedge. The effective amount of the instrument’s gain or loss is recognized under “Other comprehensive income (expense)” and the ineffective amount under “Financial income (expense), net”, and the accumulated gains and losses are reclassified to profit and loss or to the balance sheet when the object is recognized, adjusting the item in which the hedged object was recorded.

In these hedge relationships, the main sources of ineffectiveness are the effect of the counterparties and the Company’s own credit risk on the fair value of the forward foreign exchange contracts, which is not reflected in the change in the fair value of the hedged cash flows attributable to the change in exchange rates; and changes in the timing of the hedged transactions.

The derivative financial instruments designated at the September 30, 2024, as hedge accounting, according to the cash flow method, to protect the operating results in relation to the price of commodities are:

Hedge accounting - Derivative instruments	Risk factor	Quantity		Notional		Fair value
Future contracts	Commodities		7,852		273,017		996

Seara Alimentos also designates derivatives to hedge the fair value of debt instruments with floating interest rates through swaps of fixed interest rates, measured in accordance with fair value hedge accounting.

c3.1. Hedge accounting:

Below is shown the effects on income for the period, on other comprehensive income and on the balance sheet of derivative financial instruments contracted for hedging exchange rates, commodity prices and interest rates (cash flow and fair value hedges):

	Seara Alimentos
Income statement:	2024			2023
Cost of sales before hedge accounting adoption		(28,025,788	)		(29,170,133	)
Derivatives operating income (loss)		542			137,088
Currency		—			7,697
Commodities		542			129,391
Cost of sales with hedge accounting		(28,025,246	)		(29,033,045	)
Financial income (expense), net excluding derivatives		(311,177	)		(97,587	)
Derivatives financial income (expense), net		(591,681	)		(127,915	)
Currency		(467,762	)		50
Commodities		(122,258	)		(120,800	)
Interests		(1,661	)		(7,165	)
Financial income (expense), net		(902,858	)		(225,502	)

56

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Below are the effects on other comprehensive income (expense), after the adoption of hedge accounting:

	Seara Alimentos
Statements of other comprehensive income (expense):	2024		2023
Financial instruments designated as hedge accounting:		5,169		(24,978	)
Currency		—		297
Commodities		5,169		(25,275	)
Other comprehensive income		7,830		15,306

Cash Flow Hedge Movement	December 31, 2023			OCI			September 30, 2024
Hedge accounting operations at Company Seara		(2,660	)		7,830			5,170
Deferred income tax on hedge accounting		905			(2,662	)		(1,757	)
Total of other comprehensive income (expense)		(1,755	)		5,168			3,413

Below are the effects on the balance sheet, after the adoption of hedge accounting:

	Seara Alimentos
	September 30, 2024			December 31, 2023
Balance sheet:
Derivative (liabilities)/assets		996			—
Financial instruments designated as hedge accounting:
Commodities		996			—
Derivative (liabilities)/assets		51,378			21,656
Financial instruments not designated as hedge accounting:
Exchange		51,378			24,097
Interests		—			(2,441	)
Other comprehensive income (expense)		5,169			(2,660	)
Currency		—			191
Commodities		5,169			(2,851	)
Inventories		(3,946	)		31,845
Currency		—			660
Commodities		(3,946	)		31,185

57

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

Open balance sheet position of derivative assets and liabilities:
	Seara Alimentos
	September 30, 2024		December 31, 2023
Assets:
Designated as hedge accounting		996		—
Currency		996		—
Not designated as hedge accounting		51,378		24,097
Currency		51,378		24,097
Current assets		52,374		24,097
Non-current assets		—		—
(Liabilities):
Not designated as hedge accounting		—		2,441
Interests		—		2,441
Current liabilities		—		2,441

c4. Position balance in commodities derivatives financial instruments of JBS USA:

	JBS USA
EXPOSURE in Commodities	September 30, 2024			December 31, 2023
OPERATIONAL
Firm contracts of cattle purchase		15,635,020			15,639,117
Subtotal		15,635,020			15,639,117
DERIVATIVES
Deliverable Forwards		(2,448,377	)		1,883,895
Subtotal		(2,448,377	)		1,883,895
NET EXPOSURE		13,186,643			17,523,012

Sensitivity analysis:

		Scenario (i) VaR 99% I.C. 1 day						Scenario (ii) Price variation - 25%						Scenario (iii) Price variation - 50%
					Effect on income						Effect on income						Effect on income
Exposure	Risk	Price			JBS USA			Price			JBS USA			Price			JBS USA
Operating	Depreciation		(2.06	)%		(321,300	)		(25.00	)%		(3,908,755	)		(50.00	)%		(7,817,510	)
Derivatives	Appreciation		(2.06	)%		50,314			(25.00	)%		612,094			(50.00	)%		1,224,188
						(270,986	)					(3,296,661	)					(6,593,322	)

Derivatives financial instruments breakdown:

			Consolidated
			September 30, 2024									December 31, 2023
Instrument	Risk factor	Nature	Notional (USD)			Notional  (R$)			Fair value			Notional (USD)		Notional  (R$)		Fair value
Deliverable Forwards	Commodities (Cattle)	Short		(449,400	)		(2,448,377	)		(3,449	)		389,130		1,883,895		(9,595	)

58

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

d. Liquidity risk

The table below shows the contractual obligation amounts from financial liabilities of the Company according to their maturities:

	Company
	September 30, 2024										December 31, 2023
	Less than 1 year		Between 1 and 3 years		Between 4 and 5 years		More than 5 years		Total		Less than 1 year		Between 1 and 3 years		Between 4 and 5 years		More than 5 years		Total
Trade accounts payable and supply chain finance		6,242,113		—		—		—		6,242,113		5,934,371		—		—		—		5,934,371
Loans and financing		1,262,087		17,932		504,787		5,927,453		7,712,259		1,297,393		434,060		1,020,575		10,496,073		13,248,101
Estimated interest on loans and financing (1)		110,610		943,803		811,686		2,603,449		4,469,548		860,094		788,465		1,499,084		3,092,861		6,240,504
Derivatives liabilities		194,594		210,244		—		—		404,838		42,513		—		—		—		42,513
Payments of leases		74,958		105,990		43,087		1,825		225,860		53,037		41,810		38,596		17,587		151,030
Other financial liabilities		81,875		298,750		—		—		380,625		72,680		101,250		—		300,000		473,930

	Consolidated
	September 30, 2024										December 31, 2023
	Less than 1 year		Between 1 and 3 years		Between 4 and 5 years		More than 5 years		Total		Less than 1 year		Between 1 and 3 years		Between 4 and 5 years		More than 5 years		Total
Trade accounts payable and supply chain finance		31,603,180		—		—		—		31,603,180		30,040,844		—		—		—		30,040,844
Loans and financing		10,121,300		166,571		14,602,648		78,394,764		103,285,283		4,316,360		828,968		5,870,259		85,806,238		96,821,825
Estimated interest on loans and financing (1)		11,851,025		4,630,988		8,836,378		35,812,594		61,130,985		6,598,186		5,095,409		9,247,444		35,778,473		56,719,512
Derivatives liabilities		553,372		211,400		—		—		764,772		698,361		—		—		—		698,361
Payments of leases		1,886,162		3,467,721		1,131,253		3,166,869		9,652,005		1,707,172		1,420,650		2,141,172		3,644,939		8,913,933
Other financial liabilities		81,875		299,482		—		84		381,441		102,452		101,250		—		300,000		503,702

⁽¹⁾ Includes interest on all loans and financing outstanding. Payments are estimated for variable rate debt based on effective interest rates at September 30, 2024 an December 31, 2023. Payments in foreign currencies are estimated using the September 30, 2024 and December 31, 2023 exchange rates.

59

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

The Company has future commitment for purchase of grains and cattle whose balances at September 30, 2024 in the amount of R$343,333 (R$442,817 at December 31, 2023), in the Company and R$157.2 billion (R$172.4 billion at December 31, 2023), in the Consolidated.

The Company has securities pledged as collateral for derivative transactions with the commodities and futures whose balance at September 30, 2024 is R$125,788 (R$64,754 at December 31, 2023). This guarantee is larger than its collateral.

The indirect subsidiary JBS USA and its subsidiaries, has securities pledged as collateral for derivative transactions with the commodities and futures whose balance at September 30, 2024 is R$586,569 (R$325,989 at December 31, 2023). This guarantee is larger than its collateral.

Also, the direct subsidiary Seara Alimentos has securities pledged as collateral for derivative transactions with the commodities and futures whose balance at September 30, 2024 is R$200,017 (R$250,540 in 31 de dezembro de 2023). This guarantee is larger than its collateral.

The Company has a bank loan that contains a loan covenant. A future breach of covenant may require the Company to repay the loan earlier than indicated in the above table.

The interest payments on variable interest rate loans and bond issues in the table above reflect market forward interest rates at the reporting date and these amounts may change as market interest rates change. The future cash flows on contingent consideration and derivative instruments may be different from the amount in the above table as interest rates and exchange rates or the relevant conditions underlying the contingency change. Except for these financial liabilities, it is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

e. Risks linked to climate change and the sustainability strategy

In view the Company’s operations, there is inherent exposure to risks related to climate change. Certain Company assets, which are mainly biological assets that can be measured at fair value, may be impacted by climate change and are considered in the preparation process of these interim financial statements.

For the six-month period ended June 30, 2024, Management considered as main risk the data and assumptions highlighted below:

(i) possible impacts on the determination of fair value in biological assets due to the effects of climate change, such as temperature rise, scarcity of water resources, may impact some assumptions used in accounting estimates related to the Company’s biological assets, as follows:

● losses of biological assets due to heat waves and droughts which occur with greater frequency and intensity;

● reduction in the expected growth of our biological assets due to natural disasters, fires, pandemics or changes in rainfall patterns; and

● interruption in the production chain due to adverse weather events, causing power outages, fuel shortages, disruption of transportation channels, among other things.

(ii) structural changes and their impacts on the business, such as:

● regulatory and legal: regulation and legislation arising from Brazilian and/or international authorities that encourage the transition to a low-carbon economy and/or with greater biodiversity and that increase the risk of litigation and/or commercial restrictions related to the alleged contribution, even if indirect, for the intensification of climate change;

● reputational: related to customers’ perceptions and the society in general regarding the positive or negative contribution of an organization to a low carbon economy.

60

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

27 Approval of the financial statements

The issuance of these individual and condensed interim financial statements was approved by the Board of Directors on November 13, 2024.

BOARD OF DIRECTORS

Chairman:	Jeremiah Alphonsus O’Callaghan
Vice-Chairman:	José Batista Sobrinho
Board Member:	Wesley Mendonça Batista
Board Member:	Joesley Mendonça Batista
Independent Board Member:	Alba Pettengill
Independent Board Member:	Gelson Luiz Merisio
Independent Board Member:	Cledorvino Belini
Independent Board Member:	Francisco Turra
Independent Board Member:	Carlos Hamilton Vasconcelos Araújo
Independent Board Member:	Kátia Regina de Abreu Gomes
Independent Board Member:	Paulo Bernardo Silva

STATUTORY AUDIT COMMITTEE REPORT

The Statutory Audit Committee reviewed the individual and consolidated condensed interim financial statements for the nine month period ended September 30, 2024, at November 12, 2024. Based on the procedures performed, also considering KPMG Auditores Independentes Ltda. review report, as well as the information and clarifications received during the period, the Committee recommends that these documents are in a position to be considered by the Board of Directors.

STATUTORY AUDIT COMMITTEE

Chairman:	Carlos Hamilton Vasconcelos Araújo
Committee Member:	Paulo Sérgio Cruz Dortas Matos
Committee Member:	Gelson Luiz Merisio

61

Notes to the condensed financial statements for the nine month period ended September 30, 2024 and 2023

(Expressed in thousands of Brazilian reais)

FISCAL COUNCIL REPORT

The Fiscal Council, in the use of its legal and statutory attributions, examined and discussed with the Administration the earnings release and the Company's individual and consolidated condensed interim financial statements including the proposal for the earning allocation for the nine month period ended September 30, 2024, at November 13, 2024, and validated these financial condensed interim financial statements approved by the Company's Board of Directors on this date.

Based on our review, the information and clarifications received during this period and considering KPMG Auditores Independentes Ltda. audit report on the individual and consolidated financial statements, without reservations, issued on this date, the Fiscal Council was not aware of any additional fact that would lead us to believe that the aforementioned financial statements do not reflect in all material respects the information contained therein and that are in a position to be disclosed by the Company.

FISCAL COUNCIL

Chairman:	Adrian Lima da Hora
Council Member:	Demetrius Nichele Macei
Council Member:	José Paulo da Silva Filho
Council Member:	Orlando Octávio de Freitas Júnior
Council Member:	Patrícia da Silva Barros

STATEMENT OF OFFICERS ON THE FINANCIAL STATEMENTS AND ON THE INDEPENDENT AUDITORS REPORT

The Company's Officers declare at November 13, 2024, for the purposes of Article 25, paragraph 1, item V and VI of CVM Instruction No. 480 of December 7, 2009, that:

(i) They reviewed, discussed and agreed with the independent auditors report on the individual and consolidated condensed interim financial statements for the nine month period ended September 30, 2024, and

(ii) They reviewed, discussed and agreed with the condensed interim financial statements for the nine month period ended September 30, 2024.

STATUTORY BOARD

Global Chief Executive Officer:	Gilberto Tomazoni
Administrative and Control Officer:	Eliseo Santiago Perez Fernandez
Chief Financial Officer:	Guilherme Perboyre Cavalcanti
Officer:	Jeremiah Alphonsus O’Callaghan
Global Chief Operating Officer:	Wesley Mendonça Batista Filho

Accounting Director: Agnaldo dos Santos Moreira Jr. (CRC SP: 244207/O-4)

* * * * *

62