Yahoo Finance

• Consolidated Net Revenue (Q4 2024): BRL 41.3 billion, up 22% from Q4 2023.

• Consolidated Net Revenue (2024): BRL 144.1 billion, up 14% from 2023.

• Consolidated Adjusted EBITDA (Q4 2024): BRL 3.7 billion, with a margin of 9.1%.

• Consolidated Adjusted EBITDA (2024): BRL 13.6 billion, up 59% from 2023, with a margin of 9.5%.

• Free Cash Flow (Q4 2024): BRL 1.6 billion.

• Free Cash Flow (2024): BRL 2.9 billion.

• Net Debt (End of Q4 2024): USD 6.3 billion, a 12% decrease from the previous quarter.

• Leverage Ratio (End of 2024): 2.47 times in USD, 2.82 times in BRL.

• Net Income (2024): BRL 2.8 billion, compared to a loss of BRL 1.5 billion in 2023.

• Dividend Yield (2024): 29.8%.

• Dividends Paid (December 2024): BRL 2.5 billion by Marfrig, BRL 1.1 billion by BRF.

• Warning! GuruFocus has detected 7 Warning Signs with MRRTY.

• High Yield Dividend Stocks in Gurus' Portfolio

• This Powerful Chart Made Peter Lynch 29% A Year For 13 Years

• How to calculate the intrinsic value of a stock?

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Marfrig Global Foods SA (MRRTY) reported a 22% increase in consolidated net revenue for Q4 2024 compared to Q4 2023, reaching 41.3 billion reais.

• The company achieved a consolidated adjusted EBITDA of 3.7 billion reais for Q4 2024, with a margin of 9.1%.

• Marfrig Global Foods SA (MRRTY) reduced its leverage ratio to 2.47 times in US dollars, marking a significant improvement in financial stability.

• The company reported strong free cash flow generation, with a positive free cash flow of 1.6 billion reais for Q4 2024.

• Marfrig Global Foods SA (MRRTY) paid out significant dividends in 2024, with a dividend yield of 29.8%, highlighting strong shareholder returns.

Negative Points

• The North American segment experienced a 22.2% decrease in EBITDA for Q4 2024 compared to the previous year, with an EBITDA margin of only 1.9%.

• Escalating cattle prices and lower values for drop credit items negatively impacted margins in the North American market.

• The company faced a decline in exports to China, with the share of exports dropping from 60% to 46% year-to-date.

• Despite strong demand, the company anticipates lower capacity utilization in the US due to declining fed cattle supplies.

• The South American operations saw a decrease in the share of exports to China, which could impact future revenue from this key market.

Q & A Highlights

Q: Can you talk about your capacity utilization in South America and its sustainability in 2025, considering lower cattle supply in Brazil? A: Rui Mendonca, CEO & Member of Board of Executive Officers, explained that their business model, which includes large industries and value-added products, has led to improved margins. They have achieved over 90% occupancy in slaughter due to their confinement strategy, which ensures quality and sustainability. This model is sustainable and recurring, with efforts to capture operational efficiencies.