Sign in

    Lucas Mussi • Morgan Stanley

    Lucas Mussi's questions to BRF SA (BRFS) leadership

    Lucas Mussi's questions to BRF SA (BRFS) leadership • Q2 2024

    Question

    Lucas Mussi asked about the differing dynamics between poultry cuts and breeder stock housing, and which international markets BRF finds most attractive for the short and long term given its new export permits.

    Answer

    CFO Fabio Mariano noted that BRF manages its supply chain from the top and that breeder stock adjustments are part of managing overall supply, with a slight reduction expected next year. CEO Miguel Gularte highlighted that the immediate strategy is to capitalize on the 57 new permits to add value. He identified the Middle East (MENA) as a key growth market where BRF is a leader with an iconic brand, while also stressing the importance of diversifying destinations to maintain commercial health.

    Ask Fintool Equity Research AI

    Lucas Mussi's questions to BRF SA (BRFS) leadership • Q1 2024

    Question

    Lucas Mussi from Morgan Stanley asked for a short-term cost outlook, specifically if it's reasonable to expect grain costs to rise quarter-over-quarter in Q2. He also inquired about the sustainability of international prices into Q2, questioning if the Q1 strength was driven by non-repeating factors like Ramadan or a specific country mix.

    Answer

    CEO Miguel de Souza Gularte clarified that the company does not hold short-term grain inventories that would put supply at risk. He expects feed costs to remain stable from Q1 to Q2, with potential positive effects from ongoing efficiency improvements. Regarding international prices, he noted that the recovery was broad-based across all regions, not just Halal markets. He expressed confidence in Q2 resilience, as the company took advantage of good price levels in Q1 to extend its order book, providing more stability.

    Ask Fintool Equity Research AI