Tear Sheet: Marfrig Global Foods S.A.

The strengthening EBITDA is despite the struggling performance of U.S. subsidiary National Beef due to the low availability of cattle in the country, where the cattle herd has been at record lows. Although margins during the grilling season could increase amid stronger demand and productivity could rise with fatter animals, we still expect National Beef?s EBITDA margins to be below 3% for 2024. Marfrig?s South American beef operations continue to benefit from good cattle availability for the third year in a row, with low cattle costs increasing meatpackers? bargaining power with suppliers and bolstering margins. Demand for processed products also remains robust. We estimate this segment?s 2024 margins to be close to 10%. Brazilian subsidiary BRF?s strong EBITDA recovery leads

...August 5, 2024 Business diversification is bolstering Marfrig's EBITDA. The strengthening EBITDA is despite the struggling performance of U.S. subsidiary National Beef due to the low availability of cattle in the country, where the cattle herd has been at record lows. Although margins during the grilling season could increase amid stronger demand and productivity could rise with fatter animals, we still expect National Beef's EBITDA margins to be below 3% for 2024. Marfrig's South American beef operations continue to benefit from good cattle availability for the third year in a row, with low cattle costs increasing meatpackers' bargaining power with suppliers and bolstering margins. Demand for processed products also remains robust. We estimate this segment's 2024 margins to be close to 10%. Brazilian subsidiary BRF's strong EBITDA recovery leads us to estimate that it will make up close to 80% of Marfrig's consolidated EBITDA in 2024. It has achieved record-high EBITDA levels for the past...

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