BRFS - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Lorival Luz

[Technical Difficulty] …for many of us because of the COVID pandemic. And this was a year in which we had to take care of people, do everything that we had to, and still maintain our responsibility of producing food so that we could supply our consumers. Even with all of the effects and challenges, the company continued to deliver its results which were very robust. And this was the fruit of a very good execution focused on financial discipline, operational efficiency, commercial services, and this year as you'll see, our mix of products has been changed. In 2020, we reached nearly BRL40 billion in net revenue a margin of 18% year-on-year or 23% in the fourth quarter.

also BRLX.X was EBITDA adjusted robust billion. at Our the year the our billion company despite million income such to in which challenging a in BRLXXX to much, Even XXXX had total. nearly in do also up quarter fourth and was BRLX.X net so And our in successful managing leverage. this continues pathway our

been is well. now but Our very X.XX leverage it's -- managed times, at our debt has

profile is nearly maturity debt Our years. XX

quarters, been commercial very to These this management show was executed obviously, XXXX. started of This due strong XXXX. that challenges the in years. operational in carried we've out and over management and last even that So, over throughout done results stable appeared seen be culture, as effort our have of everything that the and good seeing positive have that consistency execution the in slides. despite we is posted last the results, and clearly we all initiatives very we've execution A seven logistics can people over and the

or natura. we focused done we're about added-value strategy are heard our it? whether higher industrialized have in value You how they processed products have products, products products, launching and added more on how especially high So,

far added by has graphs preferred are in and high and that so These you So, see processed which the growth of customers. a as our leaders sold happened XX% our was brands. in in look shows focused Brazil, over strength brands our that year-on-year if are can you Brazil, we've everything carries goods this And has management. XX%, at on and value of this we are are

Difficulty] we on from new a And products. we from launch Brazil, We XXX have we the lot expanding XXXX. and So, brands. direction innovation the over over and took this, In the launched of shows percentage our SKUs. course, focused the are revenue XXX this our of represents of SKUs we've strength international expansion. Okay. on launched market, launched [Technical the new we XXX in And which

had. apologize Let's a continue, for brands continue. BRF is I this leading just consumers. company that These are has our issue a brand portfolio. are that But to we by preferred technical that

We and this internationally. we have market and lead XXXX. by with successful Brazil also are also Casa, now, em and market since brands very Qualy, and consumers. others expanded our been important, also of desired in our top is in at with the Brazil, we've is Mercato mind And this This and are Perdigão Sadia, that which the Sadia started have because, but Banvit in which And which focus. we've the has just very international

We are our base. client expanding

So we are XXX,XXX in now directly. our This which we when being also talk have clients, commercial improves our services. Brazil about serviced and deliveries services,

showed client quarter, the share market company its expanded and of I that, in has share with recovered last different this in base So together, of its and categories. growth market brands all the terms

managed management. we've was of Instead results can our competitiveness our how to the Because impacted cost Now, see decision it make. to and inputs. seen our we've a our working it about been we and we've we're our the flow it. quarter, for going our what capital you about inventories, provided did change doing. how very we're noticed brands And cash we've last how our our managed you efficient increased in bit. to this of how be And have Many right as and going talking gears talking assets,

official we the indicators from Embrapa costs. below when far look still at, production it's Although,

second of This which important can quarter even the XX% at see our the other to average some goes As the basically at up, years. level consolidated to you producer up in last the corn went also here that which this for for see inputs for XX% can are average is margins look when We graph, that, of we price lowest What's them doubled or on by these up see their the XXXX. went we company. over went price, see XX%. costs by

costs of the already affected of have consequence, will make This as continue cost is And This course comes has ensures have quarter. for in to quarter this all still information of XXXX, producers. way tried probably created company We've will it in prices in and of inputs. be happen these a first to It when this the this equation the good we So we results many the based we. its between strategy. will we and also that so led to these and have available. will preventive overall, on competitive second XXXX. to growers of work first fourth and adapt The to to this remain quarter

an this this. we an for also first There's government Another the And can have any receive our the impact voucher or so-called important the aids first the from point is Corona quarter. impact during products over that might on demand quarter.

natural products, products, higher price BRF Our product resilience they present or whether some portfolio, and products the are added-value competitiveness.

It's the You is the the that chicken. beef of When pork to in of proportion the this at this can that is to series, historical our made X.XX. graph fore the rib is we course This cost be management of basis. at XX.XX at chicken highest and prices XXXX. highest how will spread same times BRF levels the since seen. whole between which historical And we've compare see decisions from connected data shows this It over their our now be are competitive can price carcasses, XXXX. versus on

our of So us given we've and very position. and good of them the had a brands the strength expansion together both that

confident very XXXX. about So we're

market. is aspect on important impact Another the and African swine reinforcing fever the Chinese

results its on So China China. recovering you production been by the been to its XX% this as exporting company can by increase has has able own to see graph.

this rise is on still very the hogs the of but has female low. So number been

go point that XXXX, lower. not They that going message see production from that back productivity and will graph. So XXXX the same our run. won't short that view as in the China is XXXX, probably to in happen to years is on be is will their in This not means you recover here well, this of The takeaway level completely. which

continue high So China will and the to robust. from be demand

we are going international to Brazil So the opportunities remain supplying will also competitive have in in and market.

focused Looking very in the even an different been structure. also has leverage foreign This reducing which at increase exchange, financial shows capital which a is the despite our topic, we've important, our debt. in company's obviously on impact how

still provided guidance BRLX BRLX.X X.XX. to exchange year, had dollar dollar BRLX we from the over the rate, that of US provided last under was – our had leverage at high And going a we in we to exchange even uncertainty. to reduce which So the and level reinforced we've the time, was under

the even due cash So billion. million to operational flow over despite And and BRLX over adverse the been variation that factor, reached of net went our has was BRLXXX up BRLX we've foreign by debt exchange billion. company's guidance mostly this but

growth a of also this stresses confidence the strength which XXXX, in BRL of BRL company. is growth is you of This cash BRL billion we trajectory. term, look with this and an this about this X manageable trust XX totally trust, that X consolidates billion facility And at billion. a So our robust over can very credit in with certainly than demonstrates maturation years. And journey more advance long this our X our if over our

So management. BRL cash the cash X.X now reached flow over of generation the X CapEx looking billion. year, at a Free billion BRL with

Index here. of The key also some points ESG, in company are Regarding BX. there index, BX still Carbon listed the Efficient is in

also anti-bribery We system. We reinforced certification. as countries waste a received certifications such with in zero Turkey our other

best that the we XXX,XXX last -- In we more you all ensure kept on access I link XXXX, are in best we health. that which of and must -- COVID-XX-related commitments here in to already also topics have quarter, had that the these more that and we are variable on to workplace we Sustainability, than to performed of all Relations than to in this them disclosing So, public, initiatives. our an terms them it presentation to the link created employees Reputation we operational, tests can few our highlight And the the as the this throughout these striving focusing example, of we mentioned. is we our a also, And and And maintain of and domain created for implement And Vice-Presidency include is important our health, and them year. Institutional information. metrics compensation got recognitions even more the on our their conditions executives. company's safety public management

initiatives. XXX% are these committed all We to

engagement gross to of results than even profit increased million XXXX, also team to proud difficult our and profit XX% losses a margin, of billion a about which of nine margin about revenue. we reduction to through this I'm our with and We X% our double the considering our the X% on also period. level to our net an and is with robust leadership increased Also, this moving doing results am the gross proudly the due very our good that attention nearly EBITDA this the And say, an over times doubled management of of numbers XX%. X the years went EBITDA to recent operational announce, gross an results I the reaching X.X to returns of company. XX%, our that like is And we your during our of Now, XXX that company, and considerations. and sustainable the reduced XX% I reached to years pandemic went achieved. of billion. of from the We X.X income nearly losses margin have impact in what final BRL happy was has billion, been the management. happy history of call more XXXX, innovation very and would considering average would to nearly of XXXX, changing the in huge engagement, we than term of our from very and reduction very a XX% BRL regarding even we today, I company management, the with gross consolidated more levels record the in turnover leverage, of BRL which of of to But the BRL that the recap,

These everything over building results positive back to years to confidence and So trust results. our we going the forward the to been have give look see us we're future.

strong very team. a have We

products. strong have We

years. We have the history brands. a solid we built strong have over And

of So about as announced BRL maintaining looking and than at XX under our margins with ambition the that you XX% December investing BRL over revenue in that leverage have more financial the well in Xx. our managing reaching discipline XXX as tell billion we numbers we billion I can and

all meat thanking Trapaça the from proud you. company. by and Now presentation their works that letter today we they've I'm that also announce of is announcing we very that closed operation operation to yesterday the with were I Fraca's SEC for related announced stating would like consequences the and that case there no close this to closed the received and the

this are is turning the turnaround company. So It page we now. true a for

for we can open We Thank for right track are future. on have much growth now you for we questions. planned the now our very the that and

Operator

first The ask Saragiotto question Crédit can Suisse. Victor Instructions] Victor is question. your [Operator for you from

Victor Saragiotto

Congratulations market? of the not increase prices was the our the it mistaken the the that was one thing highest for Good results. one domestic in of attention morning. history. Lorival I'm called company's If in

We of dynamics many know this that? up So price could increase more the how that you on XXXX? comment these but made for by prices do factors see are you

Lorival Luz

the Yes. particularly course due if repeat Can events, don't I the Victor, -- the to can because the a better I think Well year many know adjustment year, question. continue? our adjustment we going of second had in the called is my your last I sorry. inputs. of price it But call the second Thank a answer. half of in of Victor I'm me. you of hear this increases to price I for beginning half over you would

some of For from BRL example price also nearly went XX to also XX increased. packaging corn BRL the

now happening to I'm to in going a So it to facilitate in put prices. understanding. terms is try your natural what's our adjustment simple

Our is increase. fed corn with corn chicken and price this the of the

have prices why will prices company the sales the that changed. That's and natural it's that's what did. its and prices, adjust the we to So

increases is that pressure the mix. factor relevant product Another the

Sidney. Sidney, this We booster year. it I like more and to And last are also added-value products hand another to you high something? now, selling over was would add

Sidney Manzaro

our price agree, But entire -- advantageous the what Lorival that valid to No. And directly pork price and have the the due has this is of of in when we very high that for Perhaps, Brazil Lorival. I between And But from portfolio, resilient our price where the it's are said business strong chicken of cost. in that of we have exactly formation, cereals comes company with compared of us. impact highest beef been is this to resist beef, XX% really which equation. process know a of protein. you totally withstand in And of the price price this this important understand the scenario. that our added-value the is between will other prices our and affect ratio one well. to the of really cereals our spreads throughout cereals a equation, brands. can types is virtually we context for example, XX% impact

company we are values that more consumers Practicality, and a us through increasing company food by the added-value portfolio. brand. are our demand and food that perceived So eating went integrates what's And is a from becoming last year, high for more all BRLXX. to home, the this at and making BRLXX convenience it have

which are looking and So equation, add this have we have services, consumers our value is but what also for. which to brands another we lever price

Victor Saragiotto

you, and Lorival and results. congratulations Thank Sidney, your on

Sidney Manzaro

you. Thank

Operator

Isabella from is question question. next Isabella, The may you your America. Bank Simonato, of ask

Isabella Simonato

to situation Good markets, market. morning, is would that know the most morning, I for like in of very the Lorival. difficult about external except you. the Thank still We everyone. China. Good more know

have Do in improve? of XXXX? high some Halal a we In Japan, we the plants your still will But abroad. restrictions level should what that So you have think of for expect stock. you

in this terms volume look will what Halal particularly XXXX? in of recovery like, So and profitability exports in direct in

Lorival Luz

your Patricio question. Isabella. answer you, Thank will

Patrício Rohner

to Isabella. a results was historical had very similar similar as was our morning, record. XXXX, XXXX Good challenging and to which But you year, yourself. we XXXX said

important food specific with some is the Of religious course, in closing for we and shutting tourism markets of very suffered services down of services, tourism consumption.

we some the of countries I my very crisis because relevant in markets, a their take very such industry such the there strong, export places in just pandemic. Angola, this for of that Africa impact an to direct So the and The mean And currency, be economy. in economic tourism all to impact. was still, too very Turkey the also huge oil-dependent But as sectors their their had in impacted and long, don't in are was as imports and also but want foods, also specific I answer. not

ships logistic to pandemic, and everything We last due also and had which delaying problems February year up that planes year year the pandemic, continued with the distancing and throughout due and the social the ships everything the related the throughout started back ended to planes distancing ended delaying social in with up year. and the throughout which related

impacts we isolation. this this to whatever of your logistic So had type last you have mix. this withstand reduction social shipped also pressure due to And year pressure. There's whenever

Japan for end is of some mix, that. losing up mix the you which premium example, For a more

And industrialized what products. scenario the many Latin of plans year. shutdown quickly, we Angola they Middle in forward. had very foods also the we very products, what including going the addition new look that expect value. Africa high including in we these challenging many recovered America, plants, added in but So was looking strategic the of products East some We at we launched our did And China, our to suspensions, Africa, in were with was Many accelerated it we entire crisis, through and when a regarding also products. markets XXXX frozen with many South

expansion products Arabia. plan with the local that Arabia the to in working now our in we're Saudi we're Saudi right in accelerated become also And country. and manufactured on selling more acquisition We

direction So this solving this was and housekeeping. challenging us doing very not during problems really year good for strategic and prepare to our our just accelerate everyday and

to reopening demand frequent an have and least but case much problem countries for And Saudi a between balancing of boosted volume So And than for what for not important the at Turkey are so we tourism example, for and consumers terms more was this now. The Services. Food much offer flexibility is and which today barrier, many the the is this in restaurants, also for there's not this of is And of Arabia. in Turkey, price us changing is supply. by cereals. is countries, the now in rapidly larger in

increasing not recovering. very Their So we share, brand improving reopening Turkey. Arabia. and when supply terms you currency Halal and reception so at was our brands, the much in look of strengthening a boosting our production that results is good launches, had product balance to was it They're our local work Saudi market, in Turkey market demand

expect of November, of it we was year last that this October the better. month December year, better. was for much was what So month the think even worst year. the I

So are for of more more the positive growth consumption, the this China, consumer confidence have least China. for the already our problems what flexibility And seeing future, on is reflexes results. we of And at what We are year? products. in we very growth food expect in the terms

end Not their for recovering Services, increasing Food is right also in so the out initiatives if treating for this the population use, The is but and local So much we're recovering China's for people increase GDP, implementing up been a consumption resume -- they're faster eat. of in skeptically they would because a January, government some positive production. so that they're consuming of than the but The faster tourism, going actually. we problem and has to lot February March of containers to GDP now.

So optimistic. we're very

Thank year. last and behind you. the think I happened worst past is us it

Isabella Simonato

you. Thank

Operator

the Ricardo Alves Mr. question. will next ask

Ricardo Alves

Good everyone. you, morning, Lorival. Thank

a processed there quarter. was at this strong looking goods So performance

in December our still a it prices BRF but to with information. November problem seems according and that -- its had So

us in more terms in what last if Especially you competing tell the companies quarter a a with more bit that. about you of tell So like? about bit your And can can smaller been competitiveness environment? us has

Lorival Luz

sorry. hear about the year. Good What don't question know I you well. environment I the couldn't that Brazil had understood asked few if of I morning. the it's your very I'm last months in at but me, was competitive

you who I'll more on And back. about Sidney it take So, a tell it pass that. then can I'll to bit

Sidney Manzaro

Thank not hear very well. Okay. Ricardo. you, also I could

answer let don't I if asked me So, question you please as it, your know.

we're of have quarter, that we that still grain provided the because been I example, all for in think equation used purchasing prices again, and has the about first seeing but intelligence for, of pressure some once positive us. So, we've a costs, very for

this all to for impact seems So, the bet. have a an of This competitors. for been winning our main right, market, is

to the on adapt. we rest don't what from how course our question, that first design the So, a we year, same to see you're and have of costs. competitive variations. I I of pressured And the because information for understood grain complete quarter, intensity enough the about your scenario. And it the doing environment. depend of I able be price will are will same still of asking believe by We in everyone

we this cost believe the pressure. that price our if answers know don't do and So, your have question. due first variation to quarter that will still is I some

well. know answered if let I please So, it me haven't

Ricardo Alves

does Thank that my No, answer you. question.

Sidney Manzaro

you. Thank

Operator

will from BTG Duarte ask Pactual the next question. Thiago

Thiago Duarte

morning Good and I my you follow-up. two for Thank question. everyone. have a taking Actually

us can think would this I don't information good. navigate provide you usually but very you help it if So, information, this be

understand presentation to during material good you just that I'd your mentioned raw it very if break you seems Lorival, And down like the inventory that been about significantly. a gone for decision. your can up to have has us. First inventory.

terms My inventory Sidney do real grains this tell for does many could volume? months question you believe. mean you If in in terms How stored? of I second more what have about is of your us

high your consistently You market presentation mentioned that share categories. during last in quarters your the few has across been all and

few that at look up. they the the entire going have in industry? you been You do how months past So, price changes in mentioned

is last we share higher look a price the share, similar get when a And only it the few So, did BRF share years? So, in not at volume your development? question. follow-up volume a

effect was mix processed foods your important when you look the at price very that of in also mentioned You average Brazil.

affect effect? I'd average if ask So we important like separate more does price mix, to than mix your just your was that how from it? Thank company's your the If you. price effect

Lorival Luz

a also the something. will Thank answer answer you, Sid rest of and I'll can and Leo Thiago. part question maybe your say then

clear. others. It's So to make to about competitiveness. due we that has very that This BRF competitiveness on this showed is when the strategy graph we've to important had. its ourselves compare

that Of competitiveness. important course, a us have cost very strategy important because to this that's allows very it��s

the other difference between the that and saw companies and You exists gap ours.

This half initiatives look year, done Another we've and competitive. we've also makes important this quarters affect this first as that system on about a that will to continue thing in When about the implementing of we're remember the come everything the number still will line system, make the is system, and logistics expand same first operational second we we services and innovations what and believe talking the company's is along of planning. at been that will us and margins more company's they very confident us maturity.

of remain brands. of is, strength initiatives of our these by this And All course, supported robust commercially. the will

some will to I'll information on so then Sidney he can inventories. it So with pass answer said, add that on last And question. Leo being your

Leo Dallorto

morning. Good Hi.

earnings said the We've entire last as the to we've which years. for topic of very has Lorival calls, last strategy us. a been in been had asserted and this commodities is strategical As saying consistent very

reasons, You that our we since that I can years. of strategical started placed inventory already exact have, is And orders the the future had you we can't of than higher have had future of year. that last we we highest We level position inventory it tell but see orders. besides past. course -- the in strategically from the with inventory XXXX last because in

for what So Brazil that players production We the for the this in ahead getting and produce our made grains. and in kind this of market. big other difference of a protein directs world has is around can look our us consumption at

the production China, see have Brazil. the and we US, there. going Brazil, the is Argentina in Ukraine we production is how We see and how going So

how field these a around that decisions. us help they're have that own models our drives and on seeing doing, based We team in fields we taking that have it monitors which

been the we've for doing quarters. this So last

to a to and has of had good we've remain right the allowed competitive So we very us be which which to continue us inventory level allow price will now. as at are

this So we're with very confident strategy.

Sidney Manzaro

Thiago, you the questions some had asked about market. Brazilian

So to you're I want just what understand asking.

the it's Our main value is measurement remained frequently it's last years, saying but been important also constant and in for calls. to underscore we've what last the

Of course, but of important share XX%. for us, results is it only about a our part market represents

in Food For regions market company biggest example, by is Service share is food we're captured this retailers Brazil the very captured. partially not this figures, service small our in some

So contributions And efforts the made like some when XX% no top-line that we seeing we've doubt growing growth. represents is is in in mix. processed seems all goods that that from our by double-digit of over it are growth. we're the There a

our we boosting of holidays, price. on is always quarterly And the our significant have mix quarter impact our which in So have last average course results. a

of before. also on the hand On our though, costs that to mentioned passing we've prices. had this other some We're we've the

we of had advances the that value in So it's we've figures don't the from XX% portfolio, course presented, because we at XX%. to clear picture a show the added important that look went to of they made our

portfolio in a is included which are categories even effort our that us market new And added big also a products. that's there measured making not here, that not So share with we're influences figures. there's in value

is not For included. example, holiday products, this

to So, and look our prices doesn't look when share really important match it at at It's a market market trend. share. you as

We you what a to we also Behind we let X.X% just effort to have up to is -- share X%. X% in strong went to innovation. wanted I about this it So know. left

And committed so, of our strategically. to is course, is on this equation, strategy. to ourselves we've based This what doing adds our value which

Thiago Duarte

Okay. Thank you.

Operator

Andre question. Hachem will ask Itaú from the next

Andre Hachem

like know more If And taking question Carlos next I'd for Thank you. the your be that? and to XXXX in some question. know my and about on Hi, that if will could cash. information Lorival. suppliers, your this your you will you comes us cash? just Thank for quarters? had when many We you CapEx it is My to what continue give

Lorival Luz

us Okay. CFO on I'll it our information. will Thank who you. some give more to Carlos, pass

Carlos Alberto Bezerra de Moura

Lorival. Good Andre. Thank morning Thank you, everyone. for you question your

us giving point clarify an opportunity to You're this well. very

reduced. look you we debt when net that at First, our it's variation, see

So is debt, proportion capture and used being can as reduce and that you generation of see to net our amortization. cash generated

we're of amortizing we're high So said, a balance storage, of that company's our the level of what mills. a the high prepared putting same at Lorival can As and And our value strategy. we're strategy? level sustain in to and debt our feed getting to is grain Andre so our we continue level generation

we had that low same Brazil We to even even in the had other level over for clients. at despite clients and very the with clients foreign managed client both you and also want this with also with I'd levels. have default Service relationship credit direct a pandemic, initiatives our we And we good our to was Brazil very of Food stay remind in and abroad. just XXXX to like true that

the So healthy. very cash generation was company's

And that this last financial the the to The quarter. between XX as capital can between our But structure XX days. XX cycle XX more the will effects was You our said. guidance is X.XX variation look foreign X.XX at times times. last over And quarter, which this as guidance, leverage see our in days is XX Lorival on we're We've below It's well. and is when very long-term. in probably of we reaching the you company's exchange comfortable. debt reached said remain

flow generate step company. together. the more we're trying right We're but not cash sacrificing our to need the and to look balance business the to for one XXXX So other, we at on for into foot

Andre Hachem

Okay. Thank you.

a you So question. tell could are we could follow-on think If about more your just financing how if I CapEx that for bit little a you us When XXXX, ask CapEx? about that?

Carlos Alberto Bezerra de Moura

so expand for that our support added-value billion cash from our leverage capital and [ph] FRRS billion, billion our billion, lines products billion generation. we and about in year our increase can to BRLX.X Andre, next year, strategy will assets actually we'll in in efficiency, initiatives BRLX.X margins. biological company's which and to BRLX.X this and and BRLX.X continue the higher growth of to advancing all come stabilize BRLX.X operational our This invest

we're reminder to be a financially to going As continue disciplined.

three debt-to-EBITDA XX is months. net limit Our last in the times

to is or do our in the don't our to between due company the balance. very so our need these that and risk company's to important So out If integration team's we can investments, our this that mind keep we CapEx dose control.

plan. So with we are forward this moving

already initiatives quarter, look fourth are we're our BRLX.X advancing. that XXXX, at At you invested had of we the seeing billion. the end If growth

are will we cash. our confident generate and course, these investments retrofit financing growth structure. will of this So And, that

Andre Hachem

Great. you. Thank

Operator

the Fontanesi Leandro from next will Bradesco ask question.

Leandro Fontanesi

have a of questions. couple I

announced and stable the bit it's results and a in been your second XX%. each strategy you've last mentioned color us year. plan have margins you been your point You And these successful XX-year And if just you've EBITDA? talking you new been about give especially about tell how to you already But investments can doing made? some sorts how seeing line? in around you're My is provide on investments. revenue from initiatives us considering a you could What of Brazil

of it's how foods? at us bit a competitors' could and process growth processed especially growth you we because your invest tell the your plan planning on inflation prices, still to look about and plan on rise. if So you're When

concerns reaching about you you. -- on foods the guidance the market? you Thank have what any provided do processed So

Lorival Luz

Leandro. you, Thank

second then first So answer let going answer and your your to I'll question one. I'm others

of we are XXXX January starting on growth a and and inorganic initiatives them. priorities the started when also Regarding of them. we working And organic market domestic market we Xst mix for already have mix related on international working initiatives including that's initiative initiatives, a growth on

the course, in of launched seeing of initiatives, anything. results and We to but have they we can't are a management model that team communicate you won't results you half the implemented year. in regarding these initiatives implemented expect we that all all will was successfully. these of seeing ensure you'll itself, balance really of a first of start But And and impacts that have are to XXXX, the us sheet quarter the too to start be results we we results because anticipate our about also, the initiatives this the And, insipient, the these the of completed. in when asked first seeing I initiatives

to for the expect So this quarter have we of year. in first you news good

products, also we lifestyle projection practical increasing products, a of people's more population high this all demand. And to increase and the change attention not Now, and people's products and production is in paying it's continue to important see And the in an the are when risk investing for growth, habits don't processed Brazil, these already demand, leads changing. in you a have in having habits respect to grow external will general, also stress of are meet is really demand as expanding but risk just to of in And population market, in well of to meet this this that, in I and sector. added-value to oversupply oversupply, this growing and this demand. a the

foots don't to add anyone anything. the and if our I know, by ground. Everything data well is have wants we grounded in-depth do We analysis. on

Sidney Manzaro

Yes. Lorival are what calculate that XXXX that, where the fit never what be. if understand we XX% we business, market If could we to goals, so we the with – just categories just our add could the we at you share said. to of extrapolate

large today, home foods really that consumers standards. another delivering macro consumers not people also how are the of taste trends, these to we lot we And particularly the meet and for their most a if of new does new are there's categories markets markets. and not advance, that at for want consumers for international to to So see behaving do in at we in portion Brazil BRF room that and look cook

So off-the-shelf there's the that food have. towards trend smaller also people a these at products, macro industry and also, factors combination the to huge are foods. that opportunity in people and size and living want of newer looking will be the a see And living opportunity of this shows want leading easy we people spaces, demanding market Brazil. and that alone still We will occasions. in prepare, the tasteful looking transformation And consumption of this practical becoming in products the at all they more specific more generations transformation, BRF

grow today, advance processed So, in a at to yes, lot in of other product places XXXX a see line we in pace Brazil the fast space is half goals. do for of we with example, consumption With to very have world. in pork and what the

So this the for new to we many innovations, forecast leads level XXXX. growth categories all that will to contribute that

Leandro Fontanesi

in here at your reduction mix but processed that other there is And a part your significant and the you. mentioning? strategy preserve in segment, of your pork one or worth had element we Is chicken. Brazil adjust just Thank is to products, a to margins, any increase look you that When follow-up.

Sidney Manzaro

is is factors. combination of our It company. the This secret actually of actually a

demand adjustment domestic We the and which inter-market markets, what and between leads will international us deciding have mix to an be. have we product an

in how value, that On of looking have here our a at we advancing we're added-value the understand are the we to market as And all other so try interact. whole combination added with advancing also high we mentioned markets hand, today, terms innovations of value. we portfolio. to And, are yes, a the

the happening are at things same two the time. So

Patrício Rohner

Sidney, like foods I'd product. they you add our something or Processed own natura what reinforce in consume said. to

a value, value increase natura are added products. in up of when So we we doing our our

natural. you what So we have wanted reinforce I is positive just this cannibalization, said. which to

Sidney Manzaro

Yes. you. Well Thank done, Patrício.

Operator

question-and-answer [Operator session Instructions] This closed. is now

to Now Mr. for Luz it his I hand remarks. over Lorival final

Lorival Luz

of to high the us. listen high the company how level Thank results to today. to and of again time once the stress our the of participating like trust. taking for and for level all you would you also are we I delivering Thank competitiveness

is initiatives doing our and we our we're is very that we that everything of communicated our terms invested in for which the motivation supplies, in December. being and from that vision of of XXXX all the management the you in trust reach of a in to we brands you that to know place have our costs putting XXXX management we're effective the what Now result

have thank again, and for once great afternoon. attending a all you So,

Operator

for SA BRF and a video conference all is attending now have great closed. Thank day. you

BRF (BRFS) 28 Feb 212020 Q4 Earnings call transcript