Guilherme Padares's questions to BRF SA (BRFS) leadership • Q2 2025
Question
Guilherme Padares of Banco Santander, S.A. inquired about cost pressures beyond animal feed, such as labor, in Brazil's low-unemployment environment, and also asked about SG&A trends. Additionally, he sought insights on the operational learnings from the avian flu crisis and what BRF might do differently in a future event.
Answer
CEO Miguel Goulard detailed that learnings from a prior Newcastle disease event, centered on transparency and credibility, were crucial. The company's preparedness with 198 new export permits and strong domestic brands allowed for effective mitigation. CFO Fabio Mariano addressed costs, stating that labor costs correlate with inflation but are not expected to significantly alter the overall cost structure. He affirmed that SG&A should remain structurally around 15% of revenue, excluding a one-off item in the quarter.