FriGol has net revenue of R$786.9 million in the second quarter
FriGol, one of the largest and most traditional beef processors in Brazil, ended the second quarter with net revenue of R$786.9 million, 4.4% higher than in the same period in 2023. EBITDA (earnings before interest, taxes, depreciation, and amortization) was R$46.1 million, up 58.7% quarter-on-quarter. Net income in the period was R$1.7 million, an improvement compared to the first quarter of this year, when the company had a loss of R$5.1 million. However, there was a decrease compared to the second quarter of 2023, when net income was R$24.1 million, as a result of the non-cash exchange rate variation in the quarter.
"Our operating results, read EBITDA, in the second quarter of 2024 were 58.7% better than in the second quarter of 2023. In the first half of the year, the improvement is even more pronounced, or 158.2% higher. All of this is due to our strategy of increasing production, diluting costs, focusing on more profitable markets and more strategic customers", explains Eduardo Miron, CEO of FriGol.
In the second quarter of the year, the company slaughtered around 169 thousand cattle, an increase of 23.4% compared to the second quarter of 2023, reflecting the investments made to increase production in its three units last year.
Sales volume increased by 16.6% quarter-on-quarter, with the largest share coming from the domestic market, which proved to be more attractive with better margins. Thus, sales grew by 19.0%, with a significant increase in value-added products in the BBQ Secrets, Chef, Angus and Açougue Completo lines standing out.
In the foreign market, sales grew 11.5% year-on-year. To Israel, the company's second largest market, growth was 143.2%. As a result, FriGol had a 15.9% market share in exports from Brazil to Israel, an increase of 5.1 percentage points in the quarterly comparison. The volume exported to China fell 1.8%. And, in line with the destination diversification strategy, exports to other countries increased 103.4% in volume.
In May, all FriGol units were authorized to export to the Philippines, which joins Indonesia and Singapore in the Association of Southeast Asian Nations (ASEAN) bloc of countries, where the company already exports and considers a promising market. Also in the second quarter, the company made its first shipment to Canada, its first destination in North America.
The drop in net income in the annual comparison (R$1.7 million in the second quarter of 2024 against R$24.1 million in the second quarter of 2023) was largely the result of the non-cash exchange rate variation in the semester of R$24.5 million.
FriGol ended June with R$303.9 million in cash, up 3.9% year-over-year. Leverage improved materially to 1.3x net debt/EBITDA versus 2.4x in Q2 2023 and 1.6x in Q1 2024.
"These are extremely healthy results, reflecting our focus on financial discipline and efforts in working capital management. This year, we are working on new issuances as part of our ongoing process of liability management, including operations supported by our sustainability actions", says Eduardo Masson, CFO of FriGol.
In the semester, FriGol accumulated net revenue of R$1.6 billion, an increase of 10.8% compared to the R$1.4 billion recorded in the first semester of 2023. EBITDA in the period was R$68.2 million, 158.2% higher in the same comparison, with a margin of 4.2%.
In the last 12 months, net revenue was R$3.2 billion and accumulated EBITDA was R$188.6 million, with a margin of 5.8%.
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