FriGol records revenue of R$3.7 billion in 2024
Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled R$179 million, an increase of 22% over 2023, with a margin of 5.1%. Net income was R$219 million, 300% higher than in 2023, impacted by R$141 million in deferred taxes from a final and unappealable favorable decision.
In line with the strategy of increasing the production capacity of the three production units, located in Lençóis Paulista (São Paulo), Água Azul do Norte and São Félix do Xingu (both in Pará), the company registered a record 665 thousand head of cattle in the year, an increase of 16% compared to 2023. This is the third consecutive year that the company has increased production by more than 10%.
"The results reflect the company’s ongoing efforts to generate value. Even in a year of high beef prices, especially from the second half of the year onwards, and a more challenging price scenario, we maintained growth in results", says Luciano Pascon, CEO of FriGol.
In the year, sales to the foreign market represented 52% of Gross Revenue while sales to the domestic market represented 48%.
China remains the main destination for exports, however, as a result of the diversification strategy, it went from 86% of sales abroad in 2023 to 78% in 2024.
For Israel, the second largest market, there was a 61% increase in sales, representing 10% of total exports, compared to 7% in 2023. Hong Kong, on the other hand, maintained around 2% of revenue share.
The highlight was the growth in the participation of other markets (in addition to China, Israel and Hong Kong), with an increase of 111%, representing 10% of the total exported, against 4% in 2023. The year was marked by the first shipments to Canada, the Philippines and Algeria.
In the domestic market, FriGol continued to focus on higher value-added products and achieved 14% growth in the volume sold of special lines, such as FriGol Chef, FriGol Angus and BBQ Secrets. The Açougue Completo project expanded with the opening of 10 new stores, ending the year with 55 stores in partner supermarkets.
Financial Strength
Reflecting its financial discipline and robust capital structure, FriGol ended the year with cash of R$360 million, in line with that recorded at the end of 2023. Leverage was 1.2x Net Debt/EBITDA, considered extremely healthy for the segment.
"It is important to remember that 2024 marked a milestone in the company's history, the result of consistent governance work. In October, the company achieved an A- rating from Moody's. In the same month, we carried out the first CRA with a rating", highlights Eduardo Masson, CFO of FriGol. At the time, the company raised R$160 million, the first CRA with an A rating also assigned by Moody's, in an operation that was coordinated by the banks Bradesco and Safra.
"This ongoing liability management work resulted in an extension of the average debt term, with around 75% of financial commitments in the long term", adds Eduardo Masson.
4th Quarter 2023 Results
The fourth quarter was the best of the year, with R$986 million in net revenue, 15% above the 4th quarter of last year. EBITDA was R$61 million, with a margin of 6%. Net income was R$208 million, up 890% compared to the same period last year, with the impact of the deferred tax already mentioned.
Sustainability
Socio-environmental monitoring of the production chain is one of the sector's biggest challenges and, in 2024, FriGol made significant progress on this agenda.
In compliance with the Febraban Protocol – SARB26, for the first time the company published the results of monitoring 100% of indirect level 1 suppliers, analyzing socio-environmental criteria.
Another highlight was the adherence to the Primi Protocol (Individual Traceability and Indirect Monitoring Program), which became a reference in certifying the socio-environmental compliance of animals from birth to slaughter.
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