Lucas Ferreira • JPMorgan Chase & Co.

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Renato Junquera Pereira, Sugar, Ethanol and Energy VP, stated that prices should react as the market recognizes Brazil's weaker-than-expected crop, which will trigger more hedging. CEO Mariano Bosch added that Tether supports the company's disciplined capital allocation culture. He characterized the Bitcoin mining project as a small-scale test on 5% of their energy to explore potentially high returns before committing further.

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Executive Chairman Juan Jose-Pineyro Sartori acknowledged that land is typically undervalued in public companies but stated it is a core long-term asset for Tether. He confirmed they are actively working on mechanisms to better crystallize this land value for shareholders. On liquidity, Mr. Sartori argued that the effective trading float may not have been dramatically reduced and that removing 'NAV discount traders' could reduce overhang. He reiterated a commitment to achieving a high stock price and a liquid, well-covered stock.

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CEO Miguel Goulard described the global protein market as having a perfect balance between supply and demand, with no fundamental shifts expected. He emphasized that BRF's focus on value-added products provides resilience. An executive added that modest global production growth forecasts (under 2% for poultry in the US/Europe) support this stable outlook. Regarding margins, management stated that while a specific level cannot be guaranteed in a cyclical industry, BRF is now a much stronger, more resilient, and competitive company capable of navigating challenging scenarios effectively.

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CFO Fabio Mariano attributed the double-digit volume growth in Brazil to a combination of a favorable consumption environment and superior commercial execution, including increased penetration and items sold per customer. He noted that BRF's growth outpaced the market, implying share gains, particularly in processed cuts and frozen categories. He expressed optimism for sustained volumes and stated that the company will evaluate capacity expansion investments from 2025 onward if the growth trend continues.

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CEO Miguel de Souza Gularte attributed the international success to new licenses, particularly 8 plants for the U.K., allowing BRF to re-enter markets and focus on higher value-added products. CFO Fabio Mendes Mariano addressed the Brazil segment, explaining that average price comparisons are affected by the absence of the seasonal holiday portfolio from Q4. He noted that while some categories like margarine face price pressure due to lower input costs (soybean oil), the overall consumption environment is recovering, supported by improved Brazilian income.

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Global CFO & IR Guilherme Cavalcanti provided a detailed breakdown of the free cash flow breakeven components for 2025 ($5.5B) and 2026 ($4.5B), including CapEx, working capital, and interest. He explained that the hedging cash impact was due to sharp rises in cattle and hog prices and is expected to reverse as physical purchases are settled.

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CFO Guilherme Fleury de Figueiredo Ferraz Parolari explained that while it is difficult to forecast, the underlying drivers, such as FX losses from dollar purchases in Bolivia and the need to repatriate cash, are not expected to change materially. He implied that this line item would likely not normalize to zero in the near future.

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CFO Guilherme Fleury de Figueiredo Parolari responded that the recent dividend announcement reflects a continuous review of their cash position. While not commenting on future payout levels, he reiterated that the company consistently evaluates returning cash to shareholders through a combination of Interest on Capital (IOC), dividends, and share buybacks.

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CFO Lucas Lira explained that Ambev's strategy is to fund sales and marketing investments through efficiencies gained in distribution and administrative expenses, driven by DTC integration and their ZBB (Zero-Based Budgeting) culture. CEO Carlos Eduardo Lisboa reinforced this by describing their 'flywheel' strategy, where digital transformation optimizes the business, freeing up resources to reinvest in category growth.

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CEO Iain Craig García outlined a conservative second-half outlook for Mexico, citing economic and weather headwinds. He noted market share has been fully recovered in the modern channel but a gap remains in the traditional trade at the 20-peso price point, which is being addressed. For Brazil, he attributed the volume dip primarily to weather and expressed confidence in a rebound, highlighting strong underlying share gains and the success of the 'Juntos Plus' digital tool. CFO Gerardo Cruz Celaya added that Mexico's H2 comparison base is less challenging.

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CEO Iain Craig García detailed that Mexico's performance was impacted by a consumer backlash, a softer economy, and adverse weather, but noted market share has fully recovered in the modern channel. He outlined affordability initiatives targeting the traditional channel. For Brazil, he attributed the volume dip primarily to weather, expressing confidence in a rebound supported by strong share gains and digital tools. CFO Gerardo Cruz Celaya added that Mexico faces an easier comparison base in the second half.

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CEO Ian Marcel Craig García confirmed that market share in Mexico is recovering but noted that increased competitive intensity was not in the original plan. Executive Jorge Alejandro Pereda added that strong South American performance helps offset Mexico's slow start, so the budget is not being materially adjusted. For Brazil, Ian Craig cited operating leverage and new capacity in profitable segments as margin drivers and stated they are not yet seeing a consumer slowdown in their territories.

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CFO Gerardo Celaya stated the focus is on sustainable growth, with revenue per case tracking inflation, supported by mix improvements via Juntos+. CEO Ian Marcel Craig García explained the Argentina strategy focused on affordability to maintain household penetration during the crisis. He is optimistic about a recovery, noting improving trends, but expects a tough 2024 before a return to growth in 2025.

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Carlos Díaz Ortiz, General Manager of the Lithium Potassium Division, stated that SQM is actively implementing cost reduction initiatives and expects nominal operational costs in Chile to decline this year, a trend already visible in Q1. Andres Fontannaz, Commercial VP of SQM International Lithium, reported that the Mt. Holland operation is cash positive even at current prices. He noted that while costs are higher during the ramp-up phase, the project has an attractive long-term cost structure. CEO Ricardo Ramos added a summary, expressing a positive long-term view and emphasizing that SQM is the best-prepared company to benefit from an eventual price recovery.

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Carlos Díaz Ortiz, General Manager of the Lithium Potassium Division, confirmed that SQM expects a decline in nominal production costs in Chile due to cost reduction initiatives and improved yields, a trend already seen in Q1. For Mt. Holland, Andres Fontannaz, Commercial VP, stated the project is cash-positive even during its higher-cost ramp-up phase and is expected to have an attractive long-term cost structure. The CapEx question was deferred as previously answered.

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Executive Rodrigo Alves stated that there is no CapEx estimate for Moove's reconstruction at this time, as a large portion is expected to be covered by insurance and the company is still finalizing its alternative production strategy. Regarding Cosan Nove, he explained there are no specific trigger clauses, but a significant change in Raizen's capital structure would likely necessitate a renegotiation of the Cosan Nove arrangement.

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Executive Rodrigo Alves acknowledged that a potential interest rate increase makes the scenario more challenging, although the company swaps most of its debt to a floating CDI rate. He agreed that the higher-for-longer rate environment necessitates more discipline in capital allocation, which is why it remains a core focus for the company. This discipline is seen as crucial for navigating the current economic landscape.

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CEO Patricio Jottar Nasrallah firmly stated that CCU's policy is not to hedge and it will not be changed, arguing it is more cost-effective long-term. He also explained that the premium beer segment in Chile has stabilized at around 50% of volume, significantly higher than pre-pandemic levels, and he expects it to remain there without major changes.

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