The period was marked by an increase in the number of slaughtered animals

São Paulo, November 7, 2023 – FriGol, one of the main and most traditional slaughterhouses in Brazil, ended 3Q23 with a net revenue of R$781 million, up by 3.6% over 2Q23, and a net income of R$13 million. Confirming the trend of improving results, which have been rising every quarter this year, earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled R$48 million, with a margin of 6.2%.

In addition to profitability, we highlight the 21% year-over-year increase in the number of slaughtered animals in 3Q23, reflecting the concrete impact of investments made in 1H23 to expand production capacity in the three company’s cattle plants located in Lençóis Paulista (São Paulo), Água Azul do Norte, and São Félix do Xingu (both in Pará).

“Investments in increasing production allowed us to gain more efficiency and contributed to a period of positive margins, both in the domestic and export markets, with the best EBITDA reported in the year”, celebrates Eduardo Miron, CEO of FriGol.

“Despite the higher slaughter volume, revenues fell as the pricing of beef sales was affected by the drop in cattle prices. Furthermore, the demand from China and the lower exchange rate compared to 3Q22 also impacted export revenues, which still accounted for 54% of sales in the period”, adds Eduardo Masson, CFO of FriGol.

Compared to 3Q22, net revenue fell by 18%, net income declined by 49%, and EBITDA was 27% lower. On the other hand, net debt fell by R$25 million (-9%).

With financial discipline and working capital management, the company closed 3Q23 with a cash position of R$306 million, up by 26% over 2Q23.

New markets and sustainability

Following the strategy of diversifying markets, FriGol recently closed its first sales to Singapore and Indonesia, countries for which it obtained accreditations earlier this year.

Singapore and Indonesia are part of the Association of Southeast Asian Nations (ASEAN), a block of countries with a population of around 700 million people, seen as having great potential for the company. The next step is to gain qualifications to export to the Philippines and Malaysia.

In the domestic market, the focus is on expanding sales of higher value-added products, including Açougue Completo FriGol, which had six new stores opened in 3Q23.

Reaffirming its commitment to sustainable cattle farming in Brazil, for the second consecutive time, FriGol achieved 100% compliance with the criteria determined by the Sustainable Catte Farming Consent Decree (TAC), in an audit supervised by the Federal Prosecution Office in Pará. The result, announced in October, confirms that all cattle purchased from direct suppliers in the Amazon biome meet socio-environmental criteria.

FriGol monitors 100% of its direct suppliers in all the biomes where it operates. For this reason, it was the first meatpacking company to implement the Voluntary Cattle Supplier Monitoring Protocol in the Cerrado, coordinated by Proforest, Imaflora, and the National Wildlife Federation (NWF), in July 2023. The protocol is still in the pilot phase, but since FriGol was prepared for the demands outlined in the preliminary version of the document, it took the initiative to implement it in a pioneering manner.

About FriGol 

FriGol is one of the main and most traditional beef meatpacking companies in Brazil. Founded in 1992 by the Gonzaga Oliveira family, who has been in the beef business since 1970, FriGol is strategically located in the states of São Paulo and Pará. The Company currently has an important share in the domestic and export markets, with a presence in more than 60 countries in the South and North Americas, Europe, the Middle East, Asia, and Africa.

For further information, visit: www.frigol.com.br

Media Relations
Elaine Daffara – elaine.daffara@frigol.com.br – 55 14 9.8181-0183