Growing with profitability, the Company recorded a net income of R$50.8 million in 2Q22, up by 33% over 2Q21

Frigol reached revenue of R$970 million in 2Q22, a growth of 23% over 2Q21. Net revenue was 19.5% higher, reaching R$893 million. EBITDA came to R$85 million, up by 37% YoY, with a margin of 9.5%. Growing with profitability, the Company recorded a net income of R$50.8 million in 2Q22, up by 33% over 2Q21, with a margin of 5.7%.

“The main drivers were volume and price. Total volume sold increased by 12% and exports moved up by 17% YoY in 2Q22. In the same period, export prices grew around 22%”, says Eduardo Masson, CFO of Frigol.

The quarter was also marked by important achievements. The Company raised R$100 million in Agribusiness Receivables Certificates (CRA) in its first long-term structured operation in the capital market, coordinated by Banco Safra. The instruments mature in five years and yield CDI + 5.75% p.a. “The proceeds were fully used to lengthen the debts, thus maintaining our leverage at the lowest historical levels of 1.1x net debt/EBITDA”, says Masson.

Following the strategy to reach new markets, the Company, which already exports to over 60 countries, received the first qualification for North America, to export beef to Canada. This year, other new qualifications already allow exports to Iran, Lebanon, Argentina, and United Kingdom. China remains the main destination of exports, followed by Israel.

Furthermore, aligned to the ESG agenda, this quarter Frigol executed an agreement for the acquisition of renewable energy that will ensure the supply of 100% of its operations in 2023 and 2024. It is an important milestone for the Company, which released its 1st Annual Sustainability Report this year.

“More than just reporting good financial results, we want to transform the production chain, leaving a positive impact. Action like these strengthen Frigol’s commitment to adopting ESG criteria in all of its activities, developing more responsible and diligent operations”, emphasizes Eduardo Miron, CEO of Frigol.

Record sales in 1H22

In 1H22, Frigol sold more than R$2 billion, an all-time high for the Company and 35.7% more than in 1H21. For 2022, the Company projects record sales of R$4 billion, compared to the R$3 billion reported in 2021.

To support growth and increase production efficiency, Frigol invested R$15 million in infrastructure improvements in 1H22, and investments should reach R$30 million by the end of 2022.

About Frigol

Frigol S.A. is one of the main and most traditional Brazilian slaughterhouses and one of the leaders in beef and pork production in South America. Founded in 1992 by the Gonzaga Oliveira family, who had 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 international markets, with a presence in more than 60 countries in the South and North Americas, Europe, the Middle East, Asia, and Africa.