BRF S.A. (NYSE:BRFS) Q3 2022 Results Conference Call November 10, 2022 8:00 AM ET

Company Participants

Miguel Gularte - CEO

Fabio Mariano - CFO

Conference Call Participants

Gustavo Troyano - Itau

Lucas Ferreira - JPMorgan

Thiago Duarte - BTG Pactual

Thiago Bortoluci - Goldman Sachs

Operator

Good morning, ladies and gentlemen. Welcome to the BRF teleconference regarding the results of the third quarter 2022. This teleconference is being recorded and replay can be -- can have access in the site of the company. It is available for downloading at ir.brf-global.com. [Operator Instructions]

Before we continue, I would like to reinforce that these information they have as the basics. The expectations, beliefs and assumptions of BRF and the information available to the company. Such statements do not correspond to historical facts, and they are based on currently available competitive financial and economic data, according to the circumstances that can occur, they can change.

We have Mr. Miguel Gularte, CEO; and Fabio Mariano, CFO. I would like to give the floor to Mr. Miguel Gularte, who will start the presentation. Please, Mr. Miguel.

Miguel Gularte

Good morning. I would like to open this results teleconference. The first in BRF thanking all of you that are connected today. I'm very excited to be in the BRF team and be able to contribute to such a relevant company in the food industry. We have iconic brands in its categories, excellent portfolio of products and an appropriate infrastructure.

I would like to give the floor to Fabio Mariano, who will present the results 2022, 3rd quarter, and I'll come back later.

Fabio Mariano

Good morning to all of you connected today. I will highlight the main financial results for the quarter. Starting with net revenues, we can see an evolution of 13% compared to the same period in the previous year. we have achieved more than BRL 14 billion. Right below I will present -- I present to your adjusted EBITDA, BRL 1.4 billion more or less billion, similar to the same quarter in 2021.

And this is a margin in EBITDA of around 10%. The net income was a loss of BRL 137 million, half of what was reported in the same period in the previous year. Moving to the right, we have an operating cash flow above BRL 1.03 billion a little bit under previous year.

However, we have a sequence being proven here from the beginning of 2022. So it is 40% above the previous quarter, even considering a very similar EBITDA. In the working capital, although we have some seasonal advancements in the festivity crops and the second crop. We have noticed a reduction in some of the main products. We have a reduction along the third trimester, the third quarter and we have also worked with our suppliers.