BRFS3.SA - Earnings call transcript Q3 2022

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Operator

Good morning, ladies and gentlemen. Welcome to the BRF teleconference regarding the results of the third quarter 2022. This teleconference is being recorded and replay can be -- can have access in the site of the company. It is available for downloading at ir.brf-global.com. [Operator Instructions] Before we continue, I would like to reinforce that these information they have as the basics. assumptions and and to information beliefs company. the expectations, of the BRF available The not historical economic correspond are do occur, statements Such to change. currently the that competitive they to can based facts, available financial according and data, circumstances can on they and

Miguel and the start have to Mr. CFO. Miguel. like Fabio presentation. I will Mr. We the Gularte, floor who Mariano, would give to Gularte, CEO; Mr. Miguel Please,

Miguel Gularte

would I this to like morning. Good results open teleconference.

are contribute connected thanking be in BRF first a that excited team of The relevant industry. I'm all to today. you in and in very be to company BRF the food able the to such

floor iconic appropriate who will to products in brands Xrd excellent categories, present and the have results infrastructure. portfolio and later. like an would back XXXX, I'll come of the Fabio We I quarter, Mariano, its give to

Fabio Mariano

connected all XX% more in net financial year. X.X quarter. period the the achieved present than for EBITDA to the will And of XXX morning in we half EBITDA, or previous adjusted below a of billion. BRL similar was present XX%. the reported loss The see BRL Good evolution to around I the of was same more I BRL can of you million, to is main I the -- year. same billion, a same Right have your less XXXX. in in what quarter billion this will period results to in the margin we net an with highlight Starting previous today. XX revenues, compared of income

X.XX an previous bit have year. right, BRL the to operating little cash we under flow a Moving billion above

beginning sequence here from of we have being proven However, XXXX. a the

second although even have the XX% is previous festivity the capital, seasonal EBITDA. similar it So In crops some advancements the and working crop. the considering a in we quarter, very above

of noticed have main a We the products. reduction in some

have also and worked trimester, along have the with the reduction third suppliers. third a our we quarter We

the to net leverage. Moving

of We performance depreciation. XX of the was quarter, The influence first the common a real have the by indicator under X.XXx. in last the impacted this reached EBITDA also months. still and

are the go our to cash an that have income for the as back engine net effort will so appropriate putting We flow leverage our to generation levels.

like in we that the that years. the indebtedness Brazilian customers comfortable performance left, evolution will profit would highlight I important the by slide perform below or infrastructure EBITDA better a our Brazil, present market, sequential like to our products X allow market. next we're around had lower quarters. our and highlight to evolution, the still have have our Finally, in of to the days, business we of active brands in about the And in we about some evolution XXXX, but period all X.XXX the been XX% to evolution, the competitiveness the we quarter and can million. that following BRL I'd In see the in EBITDA the what gross right, I have. following already profit in every adjusted highlighted. would the usually still slides, Starting than us has segments number the that performance around we like to And growth a

the and have also We items simplification portfolio sold. also

So in an the market. improvement the to with customers,

logistics, our We said, the in cup a And investments media. visibility, I brand the cuts with the in and streaming. share decrease I fourth in we the investment like [indiscernible] initiatives. the We in significant secondary visibility significant share quarter and have have cold a brand would also, in SKUs, we had service margarines, market a to in low world mainly products. as highlight levels had, market in in profitability and improvements improvement improvements

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we the peaks maximize impact we We macro price tested increase influence. products have the our order and the The protect in Turkish the the microeconomic value-added previous in in quarter. still of lira exports results and to have also operation scenario, that and a Turkey challenge. from is

exports when region. value We And close of here market I in the its with have and would And months. here last increase like also see highlights. the Halal added levels also, sales. have products, We an in the can expanding high years levels to assess of the to two share we we

allow on with consolidating in will market First, us the and an our through movement the discussed jointly joint cannot important the with are in plan be investments to an compliance partner alliance country. the the ideal leadership presence the with this that being Arabic develop keep venture strategy Also will PIF, And partners. and be region. to different. They with the totally the business JV

in avian the right, that performance the impact and in prices very products to value margins the very during positive Second, the of serves region our a have the see United products trend the added items and do have especially level. prices also sanitary at a about we that the In we pork. region, This of regions. have Europe, see of region, the export left, influenza we Cup. World in in sales can we higher The is other for XX% high expansion of stability to X, we the this expanded issue. positively Chart portfolio in value exports. the in segment. to We States a added the direct to this chicken To and the believe mix with portfolio included the the our Africa

to other in and aspects. prepared capture price both variables opportunities are the We

now in We Asia. also the bring development

profitability better performance. a see can we Here,

left have We with third EBITDA the the this XX.X% in quarter margin.

-- third last Korea XX.X% a one in we We market to in for the We see relevant both seen chicken the recovery pork, the and between and XXXX. have reached responding positively with as right, have can the prices quarter. quarters Japan, China, throughout

pork our and sustainability. portfolio to effort pet we GTM our chicken I an food. and the we expanded the Plus In market equivalent China in and have the advanced the in of We and Singapore. BRL XX% end profitability. the we alternatives have And ingredients we gained of to and the to of In plans, integration with also we sales exports the exports expansion Gran the margin, putting had capturing business in highlights consequently, BioFresh slide are and brands. synergies first Ingredients, to some maximize XXX We quarter, participation of the business, our had to next development food, presentation and pet on of EBITDA have keep million. to segments We have in Thailand.

of the XXX% use We practices goal the -- environmental by next been sealed can traceability Kizad our grain, the in of solar and recognized have many the clean seal companies integrated Amazon panels have third biomes. in Gold reaching of Also, satellite we the Environment acknowledging also Gold tracking suppliers conquers plant. generation in [indiscernible] We in for with produced direct Abu and are with some grain see slide the technology, more XX% we the year like Cerrado GHG Agency, our of by program. using the keep energy our progressing environmental than the Dhabi consecutive for

leverage. the presented call of connected related indicators to debt would in the been the evolution two this and we aspects. the net had of attention to To the will that company. to We net structure like the can present those of left, have beginning presentation. capital are Now to the information see I already the your you that

us the to debt, profile, currency, these the gross strong to in intensively of First, the derivatives. our this change indexation indebtedness here, dollars have this reached And eliminating allowed need we use figures.

is this exchange. our of the We profile. amortization second have coverage aspect And the

have short-term we revolving already liquidity cash to position amortizations been XX without the next BRL when condition high free or BRL this a combined and -- highlight the flow with and lines promised. equivalent consider negotiated X.X activities. investment more credit BRL we the slide, amortization have of chart finance than the cash Billion will billion, that This X.X In flow billion, flow. show We

X.X the the see for our negative consumption a net debt the indicator. billion besides the floor of I impact And BRL I'll here the include million give free if recovering to BRL BRL million the in you evolution rate. We slide, show had. here both of quarter, final smaller thank the this every we This we flow operating the variation. final cash chart, can flow[ the or cash we been cash The an flow free sequentially flow and CEO, the the remarks. variation. charts We ] in Miguel XXX combined, if that results as had In to derivatives exchange cash have XXX cash we has and flow audience, consider the in was we ] slide. [ also this

Miguel Gularte

in that results. to company Thank close about that levels, the I impressions performance more company, Talking can my market XX competent that on you. first I'd to days very the it will indicators found in very with certainly BRF. all professionals, professionals in like us allow well-developed take a from teleconference this than deliver. the expects

footprint. an have We appropriate

a potential. can The have us They in clearly We our will at we brands build performance consistent. reach. excellent XXXX, to powerful improvements brands, our allow time Brazil very see the [indiscernible] of households, XX% the appropriate already very to lapse,

that improve execution in and that index. using together, will sense going the indicators consistency the the have performance We're prove need advance to We we available, our constantly, efficiency. And [indiscernible]. factory both is expected. our going energy slaughtery will mortality, We we profitability, and in in in build and of we're and to emergency methodologies are and index

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to focusing fleet, work energy to level will the and facing the improvement And we of be the of the optimizing costs. are We service improvement customers. better

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a delivery latent and commitment. focus our with I collaborators, profile. commitment have performance. our close models history, very be to will thank like to pragmatism, term partners the than Agility, deliver Environment of that faster and and strict XX our this We customers that Directors, I to working have future. our communication, would possible fulfill and continue to you rationality, our like we of XX,XXX execution more is BRF incentive would better will, we We'll reinforce the this it are in sure consolidated and looking performance and we're everywhere, be long is invest in and conviction going will not for tasks our in present. Board of that and brands, shareholders, we of short controller, able than our the is and with presentation profitability jeopardizing all these years results. innovations and be our the improve we reasonable and totally of more to to with culture critical, the are the

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the start Q&A investors analysts. and now for will We

Operator

Gustavo from [Operator Instructions] comes Our Troyano. question first

Gustavo Troyano

for questions focus more the in topic main that your managed map you the Miguel, question specifically and great. in this in operational the be two of [indiscernible] productivity. understand to market. to far to topic And terms that so main you to message, related would I'd have performance second on could you, operational focusing challenge, then anything maybe this have improvement advance on I be like here, final focus would an what's and opportunity on

is grain the I'd situation to with Here, ask stock, the exports hear exports level and corn. of from corn current this in this of if your term, China. to be vision, I'd the if of this like a medium the could to And terms off balance short, challenge like to enough Brazil in

Miguel Gularte

by will will and start I scenario. about Fabio then speak answering grain the

XX action said, thing or as BRF, at effort was first this started have have more We less. the by ago plan diagnosis carefully using to a and days very leadership. our And an

out where which at you there is of don't not getting you way want the So to run get, the risk production.

industry. aspects labor So XX,XXX to and way in management, the we detailed example, leadership, base, people, give that very the have with through worked united all industry field plan an intense all goes a we all we a the then you in have employees. over And

this need on work you in So indicators. of the industry, to kind main

absenteeism the So we [ so cost, have as work to on employers you well can't slaughtering poultry. we go much attendance pork employees. to both on on. on conversion pork or fixed from work but and to in ] boning centers, you at to so industry, mortality our we have of productivity -- work to into We have have need terms If as look for not also or and the

a is this So transformation industry.

you a industry. So processing need

-- have activities, to slaughtering to you when So the have you you follow index. need

BRF. indices, this at If BRF, you you when have important stress optimizing about have it's a important at that's information a panel. were something So very when car, compare and XD I I to to talk

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So information is the accurate.

the So is accurate. information

if about lead, the So I'm with going talking we're area, the to into the improve rationalizing I'm logistics network. efficiency. logistics, talking about working

on I we're on working We're on it's hard planning, important. very work logistics. working So If very specifically this.

We have areas. that connects all a system the pricing

decisions. needs the So we be to right that to take company have a agile

you pricing exports, and to if need assertive So domestic you manage have system, Halal. market as you in segments be decisions, your a coordinating

for domestically can, So exports. well is the I both you well, can which perform as important as add as, adapt, [indiscernible]

Brazil, in really have led program So event the we Marketing other perform export by have only Marcello, very we the important Middle VP, and markets in well. also Cup, our in capitalize East advantage where brands, not World that we this a we the which have but the

high information, and the team competitive finally, the transform the to market and advantage capitalize is skilled into it. needs expecting the in geography, the we a results, all that quality this need So on diversity and company

We are very confident.

to has deliver XX clear very we're you already on to be and are it in very part Very XX of this measuring a everybody this is on everything and these company to The and plan days going first make that are have We're mention lot focused in improve. you improvements the ready out The working activities, company, this we need details we around And make of with happen. working of work expectation. We're on. results the these visible together, excited. the a start this is budget. working wealth to our is what important can very and that we to a can been spreading of very everything measure, all things plans and It's I and company. clear form we're

part to refer Fabio answer of Now the I your second just to question.

Fabio Mariano

terms, answer export compared X/X Well, in to Brazil general this place relative is exports to imports this is believe from close pressure specifically the because an about influence of that going to data on on the your we China from increase is crop in comment going Brazil of and to have suggests. to not prices corn not

data. to I to think -- these access you probably had the

So the these still Then to in for projection numbers we're crop talking linking about our Soya relative Beans. also this.

impact So additional a terms Brazilian this. there in to productivity, we planted that in going and an of in Brazil and is expectation in XXX crop tonnes as XX% Southern of areas production, in should in which reach over is is great understand increase, record the Hemisphere well increase XX% as million over a both Soya.

commodity when of grain. in we comes this, it talk Our that's have grains, also adequate, quantity, important food grain are has to cost and we're need do It's longer lose the to consumption. when we lot animal not indicators, with it see priorities about to our about A waste talk grains mortality yield talking about throwing talks have example when what 'XX. need conversion an [indiscernible], and talk to just about And indicators. a We we of aspect. wasting suggesting we not as are away. pricing, no to When predictive we we models are about presented declining Miguel

a gradually indicators. consistently of effort and improving there's on So lot consumption

in positive up. at estimate when stock. stocks question second we of part it's your other the So It's second the as move terms common side of the are for crop very of

is believe trend still and it's are average we So In materialize there range, case them. a to a prices And we has we us. to the allow can this and lower been stock compared within done. price stocks new opportunities, of see adequate strategic today,

Operator

of question, America. next from Our Bank [indiscernible]

Unidentified Analyst

like the at future. costs, look out is the for we this Halal in quarter, and going issue, understand in especially how issues I'd business. play the this to the stock to When cost the

for I'd you the investment understand, that to today? mentioned do have looking is all can Brazil, so the base, this actually And like number deliver it asset initiatives. of have into manage points mentioned that call? of more has you situation, this cost with deliver so in important to Or these the see to improvements? you you a you company all Do

Fabio Mariano

I Your Miguel going answer the the question first to parts. has am to to two, floor three give then the I'll bit. last answer and

you order reasons In mentioned. imprint, cost. increase justify three Halal I'll the you to So give of

bank hyperinflation economy has lira our domestic a Turkey And influence, are is operation. with to Turkish that This at definitely operation. today. do looking and The has first we the a

have in you So consolidation of increase when the the balance, impact you currency, that we which on an is the the translate mentioned. real, XX% Brazilian

areas. and to Middle in has Gulf East other exchange The do the issue foreign the with the

We have distribution. our own

So stocks in Brazil countries. the this transfer from distributions to then we

So then we for have stock. dollars to use

difference have product for is and we fluctuation, parity an you stock the the in sold. stock when the a increase exchange So between after have cost

increase. or marine of the of you the with XX% left that players of on explained And has will export increase has XX% then do platforms, an the freight impact to vessel by working all this, that So an you of the also marine mentioned. sea the as on are XX% rest have is

our that to are going important ready we're getting for especially it's season. in the have Christmas because speaking festivities stock, we detail Now to it's product QX, very that natural about stocks finished for

when of in cold sell this natura during we summer, well products because cuts. period, as the as So can

we the have summer, we strategic to happen we then are opportunities going see have there. that's So going and in event a to stock our sports

prepared have consumption we why that's events, So these these these opportunities. for festivities,

So we stock seasonal in reductions we effect, have other take the when lines. had away

inputs, stocks example, meat For inputs and biological materials. raw

we reduction to a of have So for but natural, QX, because mentioned. other items see are going which because season, finished and I products of is the

Miguel Gularte

your has thank Yes, So CapEx our a BRF has much very question. growth. we our that capacity to and performance. attentive deliver our supported you Obviously, for are so to investments historical

production when as program, So improve of and company. that certain obviously, all company industrialization, going increase the then to extent by increasing then mentioned, have you production, performance you in a we idleness you reduce logistics, and naturally efficiency to a the are segments, productivity,

growth us going qualification make an we and comes that great in our much a to we very our deliver and to Mexico 'XX. it range important achievements, options piece to and we're and going organic markets attentive as what's a the also to to to going news. of have factories lead number is is of of last celebrated It's our wider days, So happen few in footprint, capacity a have stress When we important such to CapEx with 'XX program. in had China,

all things. So able requirements factories of that of we scenarios to going be to respond a to factories have of do prepared number are prepared to different our

able exports. to domestically You in option have as choose. will both well And to you will be perform as the

this with So we're a basis full daily on team. a on really working hard

is -- be decisions facilities pragmatism agility. agile So that XXXX as well taking Company it's to have the in and very to has marked important more naturally, the going information. to be people, by the as right

decisions. management Pricing we to capitalize huge to pricing. opportunities is speak of taken a export for decisions. good elements we can all for need the operations in going to a we see So what's on opportunities. we present, really all forget make is that drive cannot right when I so comes we obviously, the are the scenario is, understand take good and Halal good terms to be the details. are decision it the preparing to We to XXXX

at repeating critical future that plan hold doesn't look mean a to we a putting have we to way, for the whole company. term, to is efficiently myself, short the are believe that We the is to going medium that I actually and work and simplified on work but permeate in and apologize

and the other are is way serve what around. on. business to here And We that we're not the working

Operator

Ferreira, [Operator Lucas question. Instructions] next JPMorgan the has

Lucas Ferreira

topics. Two,

would medium an to on or going you all, actually there an you routes back the -- opportunities BRF. opportunities Miguel, to on BRF. like in questions are and results follow-ups are already content Are quarters next have improvement long see your to of low-hanging your of could they I is term, initial that meaning there marginal? exercise short that First say for operational that the answered. Or apologize of in do the run assessment, you impact some to that the maybe let's I in be going have a year, you believe that embraced at

about food use You spoke conversion KPIs, about spoke losses. some

company in with on numbers we have this -- have us question industry to share Brazil, Brazil an the the second sense. or you metrics benchmark the that business. idea history, about below below And are where do So so the BRF is the

Brazil, in to is know What's and be moving will addition speak competitiveness World we market, industry going and you about seasonality do you an to the next be including Can margins. that environment? business Speaking could Cup, going the to for seasonal quarter that improvement -- there about possibility in in you festivities expecting expand the are we're this we issuance help? the to a the environment the see in increase

Miguel Gularte

you're first also is that let's do impact. so look go benchmark important you thank I building you a need how convinced Lucas, a have for benchmark. and question. your at they to say a Well, Well, very own internal the point. your it's relevant, am But plan. much to straight major Yes,

different possibility geographic your number of BRF with practice. best you of of in factories the best have practices, imagine in country, you areas And country. area adopting You in each improve diversity can the a huge the

pack BRF there. is out You copy BRF we can best the that somewhere dear. best The have

matter make implement are no happen. this then improving and you and this to where So

So that's why I to not level, at say, always just speak down factory go the let's let's top floor. the

We have this sense. great examples in

the all impact start business that sales, mentioned, impact in very So impacting as the KPIs occur very improvement logistics, the established are we aspects and the we we the the and clear This business have capitalize operations, planning, the that call this opportunity people, on an short is relevant that as medium map. on in have processes. term. and opportunities, And continuous

We they we more to will share are as this. information occur, And working on you.

you the say in We whole at are And and They practices beginning operation. heating take because one. permeating very a information. which is this to a are to the up I'd adopted are as phase lot and the such challenge KPIs to a when quality we're of The are decide get in. being program kick excited

extremely chicken, pork. here is slaughter to make is We X.X industry in XXX Our detailed grams there or difference. millions going million whatever

increase on there's in huge, point X% is intent. no or the being So X% but just

have you is of diagnosis, part correct the so a have You detail discipline, clear information, plan, have the need your and to to routine.

doing -- look have ball, the of you is, to that are be too at we this So again, that. cannot concerned but you

short in give basic basic difference an the that will things back and in again the to had I conditions doing and can to make mid they the sentence way. you example, to the present we're to all are I simple the they guarantee a if And back Going term. going

Fabio Mariano

Lucas.

would in on I variables promoting it's Regarding important and you business. variables Brazil basics the evolutions as of to have that the competence highlight regardless like well, market, variables we the to we of tell market that competition and question the the that control, been

clients, execution, customers. items expand that increased to guarantee adherence the The customer influence commercial we consumer. decision example, For policy the the we point, the the of purchase Also, sold allow are price to able our levels. This our have sales in the will in prices service base, the trade will drastically. the to to

All already. of in slow gradual process of day, process share. At the will can we the this end our market that achievements impact significant capture that and this

margarines products the Our last market news meat reading in also they achievements cold as categories share metric have and company. had are for very and from such cuts important categories and we

So this commercial to do has with this evolution.

If data. you was to but we didn't pay possible, have the pricing. attention to pricing the This adjust

of This Brazil, well. the have the what related basis geography to the in to and products. pork You There our Since have still favor have most the context. relative other production the in opportunities exports competitiveness. other be inside the concentrated markets has Brazilian Brazil as can grown see that products. base of are this will I is of would process we mention I Besides projections for that and price and declining mentioned, of cost feed production

raw So the us will low-quality an a than indicated we'll And in that with impact processed production. more market. more import Brazil. this exports income, will increment also prices, prices deteriorated of When indicating products. disincentive this products and -- we impact have economic that the material of affordable will we this prices, This help availability it here. And the scenario and see we will is have on have we can we accessible

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Operator

question next Duarte, from Pactual. BTG is Our Thiago

Thiago Duarte

would I like to ask two questions.

your margins into the just that like I'd quarters. at to you a improve do leaving are into very year. Asia, to if from hear little the and in you on the to Halal in low. going this to little The you the level exports came even market bit for it's from to margin around some I'd bit if to Or bad perspectives and discussion. hear in the figure, the And first of you so. understand to Brazilian recovery XX% think of kind as results a can look can it how a region, the margins, maintain from next this a you but leading segment, is still perspectives this discussion, consistent that like When one, company listen the be the market market, we showing digits, good chicken you And that low. profitability about first on from the you to about see Brazilian what especially vision I'd that the like fourth is the you capacity will sustainable? seems the quarter, hear

think someone plans not due understand to discussion. that So said, missing? would understand can early, I these question. would be regarding a the that due And to Miguel, to I to and the of Maybe the you but to they about capital asked it's by so most have preliminary second had, differently to you know the been way and that level turnaround few question, what have a or in first would like you we and have able processes, in in you time that times. what short I initiatives. could that I people that the interesting very that support pointing you need for to very efficiency some about fact, results. to opportunities rare, do do while, as regarding people, heard say, implement let's gains. here time a we It's this and plans be I repeat to the believe several to due is think see of very themselves many the more to points points have short raise difficulty that a capture that the common. BRF your following be Then have can, we too have this we do has

Miguel Gularte

would important I I with and is that Since this have mean back to like we're not future. say recent, you. I'll doesn't forward here, that have plans to type very programs that do. your look we experience that rather it's the question and on going I'd a that faced. record believe at we years analysis, have something track have about, and ignore a the backwards process important XX of Thank It's I I look is look situation build and talking of to not existed. the what that been this second this the have new. that start to It we have all question. new to scenario

must You have wisdom past. the analyze to the

allow the very I'm past myself able and you're when that. industrial modest a understand for if years, future, factory to to unit I realize it. that, been very something reinforce bring processes and the this important I've I to learn So from in It's to that several XX aspect and all say analyze can companies. person

have in indicator transformation challenge we and the have as So advantage the animal at years major is a in but this as start allows process protein production a experience what then very challenge we build not have working. indicators. quality understand think high know aspect, look And indicator is And to the several because major manufacturing of have what protein in I to change phase. very an that the to preliminary experience BRF a And to is I indicators. I to The process that food, build analysis, has indicator, the major in starts we the we this after have this are believe that to XX in temptation that the we this always background of said in vision. do But prioritize. in analysis challenges. we and that such you when the has have one, this me clear you And correct

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brand, makes you the a focus. attack to And easier. have at aspect, things we have lose why strong brand segmented The very and this plan. cannot That's the very We same time. temptation is everything

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I identify this challenge, think, together, the potential working is So correctly. major to

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have to details. -- So on be you on focusing the focused

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plants. So starts in the only not the field, industry, program in in the the

focusing I field. about about the mortality talking also talk are that on we're We when and

time the my have So that [ lipoma veterinary use will to be daily that ] worthwhile. first I in my routine.

I it's important. think

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location have You pathways the you're how I plan designed and that that -- each but very you geographic questions are cannot results. silver the pertinent and know lot bring operational and of bullet, a think could well asking humbleness, us this very

We Fabio go of to timely. are the question. part that your answer and discuss give to to I'll going going more we're into details the floor to second

Fabio Mariano

I to In in your you exports sense, the is have maximize is mentioned, for market. in ways think that Regarding markets that revenues. the have alternatives look really to what important expand platform to international this you

markets focusing decision-making order intensively production it a to regarding company working offer to been our geographies are agile units very and more that and new to dynamic. into enable the have in different in we flexible, So change

Eurasia. highlight Asia, in fields had China, We also have You enabled protein Singapore. also chicken for we [indiscernible]. here the can new I chicken had the Toledo, being pork We mentioned in to the period, to a the had

look some us Turkey about the will work thinking and either in pork. good these to in a and we even win for we positions, And for in issues States expectation also is this to and the expansion, a that We sanitary pork more allow other areas should that China and offer our Europe. flow So if this in trade United see XXXX, due already lot intense imports see there production protein. margins is of will ahead time and restrictions to a preserving China. for reduction XX% a influence a be an of is around

to is these prepared all well on capitalize So company opportunities. the

segment. Halal mentioned also have You

some in have be value happen the World More will Cup, portfolio. We now the opportunity sales, our quarter major area, XX% incremental that Gulf and move fourth intense processing. fourth the gains to unit of the should related brand product linked this we the rehabilitation in become to during a since than local the we already in of able to had products that more And process will to the the Kizad it Arabia. we exporting forward quarter. the added plant is Saudi to in Also,

and So we would I front sausages opening especially like the exporting an additional nuggets. items. highlight, also process are to

to cut like heavier will maximize what we region, we have range. mix the the ranges premium that the even different whole related the chicken, have this the in Finally, to in call

the will business of international that we're in on margins and optimize at the working front increase the the that this day, end the market. impact results So in to

Operator

is Sachs. from question from Bortoluci last Our Goldman Thiago

Thiago Bortoluci

price is My Sachs Bortoluci, Goldman competitiveness. and question This Thiago here. is related to

pricing will policy. what Regal change this the in question, turnaround extent company First

point, competitiveness main BRF is Second, while market is now share BRF expanding. this CapEx rationalizing competitor from impact and its How on? can at this

Fabio Mariano

the say Thiago. to offer. growth going a a result especially of the and be It in answering CapEx increase even careful has remind opportunities and projects, opportunity of it projects enjoy to the mean half very is opportunities mature capital we rightly of will I and be along That the to able disciplined part by inflation are not capacity you that recession, with XXXX, doesn't highly investments in future, to macroeconomics because but go the in to question. will company 'XX return second in specifically lose today, to 'XX, require additional the going that opportunities globally products of and during company bring of going to expectation In have be we by as be not pay and I'd start have these represent careful, your economy the like as to geopolitics, very we take arise morning, processed very do Good to investments. challenges XXXX, number to of the with back unnoticed. growth for executed the going the It's an is has of allocation. may is that that out business marginal that to been investment. important that very pointed may terms Miguel

enough processed sense, we is capacity but Brazil. portfolio -- system in goods. main really growth, So which systems that this relevant have -- about And can the I'm sustain speaking in

that weak to opportunities, numbers. very will qualifying He this been has there for performance, As said we and clear bullet. don't point points, in in gradually. Miguel want put at has in happen terms of relevant is time, these silver no

there, need happen. gradually, we indicators will engagement The going there, this to there. will offer. And the is are a we time. that In plan do have is We context, number through this improvement the mentioned of is make

call visibility would great our offer day. is your and we up. as for thank like finished, will you Q&A We a We and wrapping to participation wish progress. also is you

BRF (BRFS) 12 Nov 222022 Q3 Earnings call transcript