Thiago Bertolucci's questions to BRF SA (BRFS) leadership • Q2 2025
Question
Thiago Bertolucci from Goldman Sachs asked about the strategy for releasing the increased finished product inventory built up during the avian flu crisis and how dependent this strategy is on trade with China reopening. He also followed up on the negative EBITDA margin in the Banvit (Turkey) operation and its outlook.
Answer
CEO Miguel Goulard emphasized the philosophy of 'sell to produce,' aiming to normalize inventory levels to near-zero without destroying value as markets reopen. CFO Fabio Mariano added that the pace of normalization depends on market opportunities, especially the reopening of China and Europe. Regarding Turkey, an executive explained the negative margin was due to excess local poultry supply. The recovery plan involves increasing the mix of higher-value processed products, adjusting slaughter rates, and integrating the Turkish platform more closely with Brazilian operations under a 'Turkey Plus' efficiency program.