Marfrig Global Foods S.A.

Overview Key strengths Key risks Large scale beef processor with operations in the U.S., Brazil, Uruguay, and Argentina Exposure to commodity-price and foreign exchange (FX) volatility and uncontrollable sanitary barriers Some diversification into poultry with 33% controlling stake in BRF S.A. Lower cutout ratios in the U.S. and subdued global demand fundamentals pressuring metrics. Lower capital expenditure (capex) and optimized working capital to navigate industry downturns Weaker leverage given acquisitions and shareholders? remuneration Marfrig and the Saudi Agriculture and Livestock Investment Co. concluded a Brazilian real (R$) 5.4 billion capital subscription in BRF in July 2023. MMS Participações Ltda., the majority controller, provided the cash to Marfrig, which transferred it to BRF without changing its 33.3% stake, as minority shareholders

...The recent capital injection demonstrates Marfrig's strong commitment to support BRF. Marfrig and the Saudi Agriculture and Livestock Investment Co. concluded a Brazilian real (R$) 5.4 billion capital subscription in BRF in July 2023. MMS Participat)es Ltda., the majority controller, provided the cash to Marfrig, which transferred it to BRF without changing its 33.3% stake, as minority shareholders accompanied the equity follow on. The transaction excluded a rule that previously obliged any shareholder that reached more than one-third of the capital to launch an offer for all the shares on the market with a premium payment over the share price....

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