Revenue up 15.6%, Reaching R$ 902.5 Million!
Frigol, the fourth-largest beef processor in Brazil, reported a net profit of R$ 13.1 million for the third quarter of 2024. The company, a privately held corporation, stated that its quarterly results were stable compared to the same period last year.
The company’s net revenue for the quarter, considering both domestic and international sales, totaled R$ 902.5 million, a 15.6% increase from Q3 2023. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) amounted to R$ 49.4 million, reflecting a 2.4% year-on-year growth, with an EBITDA margin of 5.5%.
Eduardo Miron, CEO of Frigol, commented, “We had a solid performance this quarter, driven by strong domestic demand and growth in sales of value-added products. On the export side, our success stemmed from customized strategies for key clients, market diversification, and access to more profitable markets. Brazil continues to be the world’s top choice for beef imports.”
During the period, domestic sales accounted for 46% of the company’s revenue, while international sales represented 54%.
Export Growth and Market Diversification
Frigol reported an 11% increase in beef exports to “other destinations,” including markets such as the Philippines, Indonesia, Singapore, Israel, and North America. As a result, the company’s share of beef exports to China decreased to 74% in Q3, compared to 86% in the same period last year.
The company is authorized to export beef to over 60 countries across South America, North America, Europe, the Middle East, Asia, and Africa.
Increased Cattle Slaughter and Financial Performance
Frigol processed 174,000 cattle in the third quarter, marking a 14.3% increase from Q3 2023.
Regarding financial health, the company’s leverage ratio (measured by the ratio of net debt to EBITDA) decreased to 1.2x by the end of the quarter, down from 1.3x in the previous quarter. The company’s cash flow for the period was R$ 39 million, representing 78% of EBITDA conversion.
Eduardo Masson, the company’s CFO, stated, “This quarter’s results once again validate our commitment to governance and operational efficiency. We will continue working toward a more robust capital structure.”
Annual Growth
For the 12 months ending in Q3 2024, Frigol’s net revenue reached R$ 3.3 billion, a 13.4% increase compared to the previous 12 months. EBITDA over the same period was R$ 189.8 million, marking a 136% year-on-year increase. The company’s net profit for the 12-month period was R$ 31 million, whereas in the previous year, the company had a “breakeven” result, where revenue equaled costs without generating profit or loss.
