Earnings Release | 4Q21

São Paulo, March 8, 2022, Marfrig Global Foods S.A. - Marfrig (B3 Novo Mercado: MRFG3 and Level 1 ADR: MRRTY) announces today its

results for the fourth quarter of 2021 (4Q21). Except where stated otherwise, the following operating and financial information is presented in nominal Brazilian real, in accordance with International Financial Reporting Standards (IFRS), and should be read together with the financial statements and respective notes for the period ended December 31, 2021 filed at the Securities and Exchange Commission of Brazil (CVM).

Base Date: Mar. 7, 2022

Market Cap:

R$15.0 billion

Stock Price:

MRFG3 R$ 21.86

Shares Issued:

691,369,913 shares

Conference Call in Portuguese

Wednesday - Mar. 9, 2022

9 a.m. BRT / 8 a.m. US

Dial-in:

TF: +55 11 4090-1621

DI: +55 11 4210-1803

Code: Marfrig

www.marfrig.com.br|ri

Investor Relations Contacts

  • Eduardo Puzziello
  • Stephan Szolimowski
  • Vinícius Saldanha

+55 (11) 3792-8600ri@marfrig.com.br

Consolidated Highlights 4Q21

  • Net Revenue of R$23.9 billion (+31.1% vs. 4Q20)
  • Adj. EBITDA of R$4.2 billion (+98.3% vs. 4Q20)
  • Adj. EBITDA Margin of 17.5% (+552 bps vs. 4Q20)
  • Net Income of R$650 million
  • Free Cash Flow of R$104 million

Operating Highlights 4Q21

NORTH AMERICA OPERATION

  • Net Revenue of US$3.2 billion (+37.0% vs. 4Q20)
  • Adj. EBITDA of US$714 million (+132.5% vs. 4Q20)
  • Adj. EBITDA Margin of 22.3% (+915 bps vs. 4Q20)

SOUTH AMERICA OPERATION

  • Net Revenue of R$6.0 billion (+7.6% vs. 4Q20)
  • Adj. EBITDA of R$213 million (-55.9% vs. 4Q20)
  • Adj. EBITDA Margin of 3.5% (-5.1 p.p. vs. 4Q20)

Other Highlights

  • Dividend Payment: R$830 million | Dividend yield of 5%
  • Further Processing: segment accounted for around 20% of Net Revenue of the South America Operation in 4Q21, up from around 13% in 3Q20
  • CAPEX in 2021 of R$2.3 billion: in projects to expand organic growth and expand production capacity of higher-value products
  • Efficiency Program: gain of R$252 million captured in 2021
  • Reclassification of BRF shares to long-term financial investments and securities, given the material impact from their mark-to-market adjustment on the 4Q21 results
  • Financial Leverage measured by Net Debt/Adj. EBITDA LTM ratio of 1.51x in Brazilian real and 1.45x in U.S. dollar

Other events

  • Dividends: proposal of R$383 million, representing around R$0.58/share, to be paid in April 2022
  • BRF follow-onoffering: stake of 33.25% and total investment of R$1.9 billion
  • Issue of R$1.5 billion in bonds converted into agribusiness receivable certificates (CRA) and of R$500 million in bonds due in 10 years.

1

Earnings Release | 4Q21

Message from Management

In 2021, Marfrig achieved its best results ever, with net revenue of over R$85 billion and Adj. EBITDA of R$14.5 billion. Our North America Operation set a series of new profitability records during year, with its excellent performance reflecting the strong demand for beef protein, which, according to the USDA, reached 58 pounds per capita in 2021, the highest level since 2009.

Our South America Operation proved resilient, delivering sales growth in the year of over 20%, with net revenue of over R$22 billion, despite the challenging scenario of lower supply and persistently high prices for cattle, combined with the temporary ban by China on Brazilian imports and the lowest level of domestic beef consumption in recent decades.

This operational excellence, streamlined structure and efficient management proved key to our delivering in the year:

  • Operating Cash Flow of R$9.0 billion (+17.3% vs. 2020) and Free Cash Flow of R$5.1 billion (+4.5% vs. 2020);
  • Net Debt/Adj. EBITDA ratio of 1.51x (-0.06x vs. 2020);
  • Net Income of R$4.3 billion (+31.5% vs. 2020).

Based on the solid results and as part of our strategy to create value for all shareholders without foregoing our non-negotiable commitment to financial discipline, we proposed and distributed over R$2.2 billion in dividends, cancelled over 20 million treasury shares and repurchased another R$650 million in new shares.

We also invested over R$ 2.3 billion in strategic projects and in the organic growth of our operations, such as the expansion of our unit in Iowa, in the United States, the expansion of primary processing capacity and the deboning area in Várzea Grande and the new beef patty plant in Bataguassu, in Brazil, which are vital to increasing the share of processed and higher-value products in our revenue mix.

With a strategy of capturing synergies through complementary product portfolios, during 2021 we invested around R$6.9 billion in shares of BRF (BRF S.A.), representing a 33.25% stake in the company, which makes us the largest individual shareholder in BRF.

In our innovation pillar, we made progress on various fronts at PlantPlus, such as the acquisitions of Sol Cuisine and Hilary's, which are important milestones for the production and sale of plant-based products in the United States. The expansion of our plant-based portfolio, along with our geographic diversification, multi-channel distribution, production scale and superior quality raw materials will enable the creation of a vertically integrated and complete ecosystem to serve key foodservice clients and supermarket chains.

The Marfrig Green+ Program, which works to reinforce our industry leadership in Environmental, Social and Governance (ESG) aspects and confirms how sustainability is central to our strategy, delivered excellent results in 2021, supported as well by our dedicated efforts. Highlights included:

  • Marfrig once again obtained the highest position among industry peers in the FAIRR ranking, an important global reference for the investor community;
  • Marfrig reintroduced over 2,000 producers back into its supply chain after helping them to bring their production systems into compliance with our social and environmental criteria for supplier certification, which represents the profitable and sustainable production of around 700k head of cattle.

Our strategy remains based on creating value for all shareholders, always operating sustainably and adding value to the cattle chain and to our local communities, while guided by Marfrig's commitment to key ESG indicators and, especially, to all its clients and workers.

In closing, I want to thank our shareholders, clients and suppliers for the trust they have placed in our Company. To our employees, we are profoundly thankful for your immense dedication to an activity essential to everyone's lives: food production.

Marcos Antonio Molina dos Santos

Chairman of the Board

2

Earnings Release | 4Q21

Key Indicators of Consolidated Results

R$ Million

4Q21

4Q20

Var. %

3Q21

Var. %

2021

2020

Var. %

Net Revenue

23,941

18,266

31.1%

23,638

1.3%

85,389

67,482

26.5%

North America

17,903

12,654

41.5%

16,729

7.0%

62,845

48,909

28.5%

South America

6,038

5,613

7.6%

6,909

-12.6%

22,544

18,573

21.4%

Adj. EBITDA

4,181

2,108

98.3%

4,734

-11.7%

14,544

9,596

51.6%

North America

3,983

1,652

141.1%

4,479

-11.1%

13,767

11,436

20.4%

South America

213

484

-55.9%

301

-29.0%

905

2,066

-56.2%

Adj. EBITDA Margin (%)

17.5%

11.9%

552 pbs

20.0%

-257 pbs

17.0%

14.2%

281 pbs

North America

22.2%

13.1%

791 pbs

26.8%

-453 pbs

21.9%

23.4%

-148 pbs

South America

3.5%

8.6%

-508 pbs

4.4%

-82 pbs

4.0%

11.1%

-711 pbs

Net Profit

650

1,171

-44.5%

1,675

-61.2%

4,342

3,302

31.5%

Net Debt (in R$)

21,926

15,053

45.7%

13,733

59.7%

21,926

15,053

45.7%

Net Debt | LTM EBITDA (R$)

1.51 x

1.57 x

-0.06 x

1.10 x

0.41 x

1.51 x

1.57 x

-0.06 x

Net Debt | LTM EBITDA (US$)

1.45 x

1.60 x

-0.16 x

1.07 x

0.38 x

1.45 x

1.60 x

-0.16 x

Average Cost of Debt (% a.a)

5.51%

5.70%

-19 pbs

5.46%

5 pbs

5.51%

5.70%

-19 pbs

Average Debt Term (years)

5.55

4.15

33.6%

4.97

11.6%

5.55

4.15

33.6%

* Calculation of Consolidated Adj. EBITDA considers the amounts related to Corporate, in accordance with Appendix I.

Select Consolidated Results

Net Revenue

3

Earnings Release | 4Q21

Results by Business Unit

North America Operation

Tons (thousands)

4Q21

4Q20

Var. %

3Q21

Var. %

2021

2020

Var. %

Total Volume

520

516

0.7%

516

0.6%

2,051

1,982

3.5%

Domestic Market

459

440

4.4%

441

4.0%

1,765

1,678

5.2%

Export Market

61

76

-20.4%

75

-19.5%

286

304

-5.9%

U$$ Million

4Q21

4Q20

Var. %

3Q21

Var. %

2021

2020

Var. %

Net Revenue

3,208

2,342

37.0%

3,202

0.2%

11,673

9,442

23.6%

Domestic Market

2,847

2,055

38.6%

2,819

1.0%

10,322

8,376

23.2%

Export Market

361

287

25.5%

383

-5.8%

1.351

1,066

26.7%

COGS

(2,406)

(1,969)

22.2%

(2,275)

5.7%

(8,821)

(7,776)

13.4%

Gross Profit

802

373

115.0%

926

-13.4%

2,852

1,665

71.3%

Gross Margin (%)

25.0%

15.9%

908 pbs

28.9%

-393 pbs

24.4%

17.6%

680 pbs

adjEBITDA

714

307

132.5%

857

-16.6%

2,571

1,438

79%

adjEBITDA Margin

22.3%

13.1%

915 pbs

26.8%

-449 pbs

22.0%

15.2%

679 pbs

Net Revenue & Volume

The North America Operation delivered total sales volume in 4Q21 of 520k tons (+0.7% vs. 4Q20 and the best quarterly result of the year), 88% or 459k tons of which were sold in the domestic market.

The operation set another record for net revenue, of US$3,208 million in 4Q21, representing growth of 37.0% compared to 4Q20. In Brazilian real, net revenue was R$17,903 million.

This strong performance is explained mainly by the higher average sales price in all markets and sales volume growth.

4

Earnings Release | 4Q21

Cost of Goods Sold

In 4Q21, cost of goods sold was US$2,406 million, increasing 22.2% compared to 4Q20, which basically reflects the higher average cattle purchase price, as detailed below, and the higher sales volume in the period.

The average price used as a reference for cattle purchases (USDA KS Steer1) was US$131.38/cwt, increasing 21.2% from 4Q20, reflecting the industry's high capacity utilization and the strong demand for beef.

Gross Income & Gross Margin

Gross income was US$802 million in 4Q21, advancing 115.0% on 4Q20. In Brazilian real, gross income was R$4,473 million.

The excellent performance is explained by the higher cattle supply and, especially, the higher sales prices for beef and its subproducts, supported by strong demand in the domestic market, which offset the increases in raw material costs.

In 4Q21, the average sales price indicator (USDA Comprehensive) stood at US$281.3/cwt, increasing 30.3% compared to 4Q20. Another highlight in the quarter was the credits from subproducts, such as leather and other products, which increased 81.8% to US$15.49/cwt, compared to US$8.52/cwt in 4Q20.

Consequently, gross margin ended 4Q21 at 25.0%, expanding by around 900 bps from a year earlier.

Adj. EBITDA & Adj. EBITDA Margin

In 4Q21, Adj. EBITDA came to US$714 million, advancing 132.5% on 4Q20. Adj. EBITDA margin ended the quarter at 22.3%. In Brazilian real, Adj. EBITDA was R$3,983 million.

1 "USDA KS Steer": benchmark cattle price in Kansas, United States.

A "hundredweight," or Cwt, is a weight-measuring unit used in certain commodity contracts. In North America, a hundredweight equals 100 pounds.

5

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Marfrig Global Foods SA published this content on 08 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2022 22:40:16 UTC.