Q4 2025 Jbs NV Earnings Call

March 26, 2026

Operator: Good morning, and welcome to JBS's Q4 2025 results conference call. At this time, all participants are in listen-only mode. Later, we will conduct a questions and answers session, and instructions will be given at that time. As a reminder, this conference is being recorded. Any statements eventually made during this conference call in connection with the company business outlook, projections, operating and financial targets, and potential growth should be understood as merely forecasts based on the company's management expectations in relation to the future of JBS. Such expectations are highly dependent on the industry and market conditions, and therefore are subject to change. Present with us today, Gilberto Tomazoni, Global CEO of JBS, Guilherme Cavalcanti, Global CFO of JBS, Wesley Batista Filho, CEO of JBS USA, and Christiane Assis, Investor Relations Director.

Speaker #2: morning and welcome to JBS 4th quarter in the year of 2025 results conference call. At this time, all participants are in listen-only mode. Later, we will conduct a questions-and-answer session and instructions will be given at that time.

Speaker #2: As a reminder, this conference is being recorded. Any statements eventually made during this conference call in connection with the company business outlook projections operating and financial targets and potential growth should be understood as merely forecasts based on the company's management expectations in relation to the future of JBS.

Speaker #2: Such expectations are highly dependent on the industry and market conditions and therefore are subject to change. Present with us today are Gilberto Tomazoni, Global CEO of JBS; Guilherme Cavalcanti, Global CFO of JBS; Wesley Battista Fillio, CEO of JBS USA; and Christiane Aziz, Investor Relations Director.

Speaker #2: Now I'll turn the conference over to Gilberto Tomazoni, Global CEO of JBS. Mr. Tomazoni, you may begin your presentation.

Operator: Now I'll turn the conference over to Gilberto Tomazoni, Global CEO of JBS. Mr. Tomazoni, you may begin your presentation.

Speaker #3: Good morning, everyone. Thank you for joining us today. We close Q4 2025 with a consistent performance and continued progress in building a stronger, more efficient company.

Gilberto Tomazoni: Good morning, everyone. Thank you for joining us today. We closed 2025 with a consistent performance and a continued progress in building a stronger, more efficient company. In Q4, we recorded a revenue of $23 billion with an EBITDA margin of 17.5%. For the full year, revenue reached $86 billion, a company record with a consolidated EBITDA margin of 7.9%. This scale and the diversity of our multi-protein and multi-geography platform remain our greatest strength, allowing JBS to navigate industry cycles or any disruption while capturing a structural growth in protein demand. In both Q4 and the full year, JBS delivered record sales with positive consolidated results, reflecting the resiliency of our global platform.

Speaker #3: In the fourth quarter, we recorded a revenue of $23 billion with an EBITDA margin of 17.4%. For the full year, revenue reached $86 billion.

Speaker #3: A company record, with a consolidated EBITDA margin of 7.9%. This scale and diversity of our multi-protein and multi-geography platform remain our greatest strength, allowing JBS to navigate industry cycles or any disruption while capturing structural growth in protein demand.

Speaker #3: In both the fourth quarter and the full year, JBS delivered record consolidated results. Reflecting the resiliency of our global platform. Net income total $515 million.

Gilberto Tomazoni: Net income total, $450 million in the quarter and $2 billion for the year, representing year-over-year growth of 15%, earnings per share of $1.89 for the year. Free cash flow was $990 million in the quarter and $400 million for the year. Return on equity reached 25% and the return on invested capital was 70%. Our leverage ratio at the end of Q4 was 2.39x, in line with our long-term target. We also maintain a very strong debt profile with weighted average debt maturity of approximately 15 years and average cost of the debt of around 5.7%. No significant maturity in the short term.

Speaker #3: In the quarter and the $2 billion for the year. Representing year-over-year growth of 15%. Earnings per share of $1.89 for the year. Free cash flow was $990 million.

Speaker #3: In the quarter and $400 million for the year. Return on equity reached 25%. And return on investment capital was 17%. Our leverage at the end of the fourth quarter was 2.39 times.

Speaker #3: In line with our long-term target, we also maintain a very strong debt profile, with an average debt maturity of approximately 15 years and an average cost of the debt of around 5.7%.

Speaker #3: No significant maturity in the short term. This strong result reflects our consistent performance in a year marked by a challenging environment in some global protein markets.

Gilberto Tomazoni: These strong results reflect our consistent performance in a year marked by a challenged environment in some global protein markets. In the United States, the cattle cycle remained under pressure with a limited supply and high costs. This is expected to continue in the coming quarters. Despite this environment in the US beef sector, our global results remain positive, reflecting the resilience of our diversifying platforms. Australia was one of the highlights of the year, with a strong EBITDA growth and margin expansion, as well as a top-line growth of 30% year-over-year in Q4. Our Australian business benefited from the currency imbalance between global supply and demand of beef, combined with strong execution and supported solid profitability, and reinforces the role of the region in balancing our global results.

Speaker #3: In the United States, the cattle cycle remains under pressure, with a limited supply and high cost. This is expected to continue in the coming quarters.

Speaker #3: Despite this environment in the U.S. beef sector, our global results remain positive, reflecting the resilience of our diversifying platforms. Australia was one of the highlights of the year.

Speaker #3: With a strong EBITDA growth and margin expansion as well as the top-line growth of 30% year-over-year. In the fourth quarter. Our Australian business benefits from the current imbalance between global supply and demand of beef.

Speaker #3: Combining with the strong execution and supported solid profitability in reinforced the role of region imbalance in our global results. In Brazil, the beef business operates with a historical margin range.

Gilberto Tomazoni: In Brazil, the beef business operates with a historical margin range, supported by strong export and steady domestic demand. The Q4 was particularly strong with the top-line sales growing 26% year-over-year. At the same time, livestock productivity continued to improve. The country recorded the highest beef processing volume in its history at around 42 million heads. This reflects a total gain in production and reinforces Brazil's growing role in the global supply. In this context, Friboi delivered solid results with growth in both export and domestic sales, volume increase in key international markets, including Mexico, Europe, and the United States, while the business also strengthened its presence in Brazil. Programs such as Friboi+ continue to deepen clients' relationships and support growth in the domestic market. At Seara, we continue to advance our strategy in strengthening brands and expanding high-value-added products.

Speaker #3: Supported by strong export and steady domestic demand. The fourth quarter was particularly strong, with top-line sales growing 26% year-over-year. At the same time, livestock productivity continued to improve.

Speaker #3: The country recorded its highest beef processing volume in history, at around 42 million heads. This reflects its total gain in production and reinforces Brazil’s growing role in the global supply.

Speaker #3: In this context, pre-bought delivers solid results. With growth in both export and domestic sales. Volume increase in key international markets. Including Mexico, Europe, and the United States.

Speaker #3: While the business also strengthened its presence in Brazil. Programs such as a pre-bought plus continues to deepen client relationship and support growth in the domestic market.

Speaker #3: At Seara, we continue to advance our strategy and strengthen brands and expanding high-value-added products. In recent years, Seara has expanded its portfolio entering new categories and strengthened in connection with the consumers.

Gilberto Tomazoni: In recent years, Seara has expanded its portfolio, entering new categories, and strengthened in connection with the customers and consumers. The business is now one of its strong moments in brand perception, supported by innovation, execution, and more differentiated product mix. In the United States, our chicken business continued to benefit from the strong demand in both retail and food service. Pilgrim's delivered a volume growth above the industry average in segments such as case-ready and small birds. The big birds segment also improved performance through better yields, mix, and cost efficiency. Brand diversification continues to progress, and Just BARE surpasses $1 billion in retail sales, reflecting the strength of our brand strategy and the significant opportunity we see to capture further growth across our modern high-value prepared food portfolio.

Speaker #3: The business is now one of its strong moments in brand perception. Supported by innovation execution and more differentiated product mix. In the United States, our chicken business continues to benefit from the strong demand.

Speaker #3: And both retails and food service. Pilgrim's delivered volume growth above the industry average in segments such as case-ready and small birds. The big birds segment also improved performance through better yields, mix, and cost efficiency.

Speaker #3: Brand diversification continues to progress. And just by surpassed $1 billion in retail sales. Reflecting the strength of our brand strategy. And the significant opportunity we see to capture further growth across our modern high-value prepared food portfolio.

Speaker #3: In the US pork business, performance remains stable. And the business closed the year with solid margins. Supported by disciplined operation and balanced supply and demand.

Gilberto Tomazoni: In U.S. pork business, performance remained stable, and the business closed the year with solid margins, supported by disciplined operations and balanced supply and demand. In 2025, we completed the dual listing process, a milestone in the company history, and became a NYSE-listed company. It strengthened our capital market position. Since then, we have seen a clear improvement in how the market value the company. Our trading multiplied and expanded, reflecting greater visibility and investor confidence. Although we still trade at a discount to our global peers. Liquidity also has increased significantly, with average trading volume up approximately 3 times compared to the pre-listing levels. At the same time, our shareholder base has become more global and diversified. U.S.-based investors now represent nearly 70% of the company free float.

Speaker #3: Also in 2025, we completed the dual listing process. A milestone that the company history and became a nice listed company. It strengthened our capital market position.

Speaker #3: Since then, we have seen a clear improvement in how the market values the company. Our trading multiplied and expanded, reflecting greater visibility and investor confidence.

Speaker #3: Although we still trade at a discount to our global peers. Liquidity also has increased significantly. With average trading volume up approximately three times compared to the pre-listing levels.

Speaker #3: At the same time, our shareholder base has become more global and diversified. US-based investors now represent nearly 70% of the company free float. Overall, this change reinforced our position in the global capital market and supported the next phase of growth.

Gilberto Tomazoni: Overall, these changes reinforce our position in global capital market and support the next phase of growth. Global protein consumption continues to grow, supported by demographic health awareness and demand for balanced diets. JBS is well-positioned to meet this demand across markets and channels. Our strategy remains clear. We will continue to strengthen our brand, expand our value-added product portfolio, and develop solutions that make protein more accessible and more convenient everyday life. Thank you again for joining us today, and now I will turn the call over to Guilherme, who will walk through our financial results in more detail.

Speaker #3: Global protein consumption continues to grow. Supported by demographic health awareness and demand for balanced diets. JBS is well positioned to meet this demand across markets and channels.

Speaker #3: Our strategy remains clear. We will continue to strengthen our brand, expand our value-added portfolio, and develop solutions that make protein more accessible and more convenient in everyday life.

Speaker #3: Thank you again for joining us today. And now I will turn the call over to Guilherme who will walk through our financial results in more detail.

Speaker #4: Thank you, Thomas. To the operational and financial highlights of the fourth quarter and fiscal year of 2025. Net sales reached a record of $23 billion in the quarter and $86 billion in 2025.

Guilherme Cavalcanti: Thank you, Thomas. To the operational and financial highlights of the Q4 and fiscal year of 2025. Net sales reached a record of $23 billion in the quarter and $86 billion in 2025. Adjusted EBITDA in IFRS totaling $1.7 billion, which represents a margin of 7.4% in the quarter and $6.8 billion in 2025, with a margin of 7.9%. Adjusted EBITDA in US GAAP total $1.5 billion, which represents a margin of 6.5% in the quarter and $5.8 billion in 2025 with a margin of 6.7%.

Speaker #4: Adjusted EBITDA in IFRS totally $1.7 billion. Which represents a margin of 7.4% in the quarter. And $6.8 billion in 2025 with a margin of 7.9%.

Speaker #4: Adjusted EBITDA in US GAAP total $1.5 billion which represents a margin of 6.5% in the quarter and $5.8 billion in 2025 with a margin of 6.7%.

Speaker #4: Adjusted operating income was $1.1 billion with a margin of 4.7% in IFRS and 4.8% in US GAAP in the fourth quarter. In 2025, adjusted operating income was $4.5 billion in IFRS with a margin of 5.2% and $4.4 billion in US GAAP with a margin of 5.1%.

Guilherme Cavalcanti: Adjusted operating income was $1.1 billion with a margin of 4.7% in IFRS and 4.8% in US GAAP in Q4. In 2025, adjusted operating income was $4.5 billion in IFRS with a margin of 5.2% and $4.4 billion in US GAAP with a margin of 5.1%. Net income was $415 million in the quarter and an earnings per share of $0.39. For the year, net income was $2 billion and earnings per share of $1.89. Excluding the non-recurring items, adjusted net income would be $500 million in earnings per share of $0.47 in the quarter.

Speaker #4: Net income was $415 million in the quarter and the earnings per share of $39 cents. For the year, net income was $2 billion. And earnings per share of 1.89.

Speaker #4: Excluding the non-recurring items, adjusted net income would be $500.47 million in the quarter. And for 2025, $2.2 billion with earnings per share of $2.10.

Guilherme Cavalcanti: For 2025, $2.2 billion with an EPS of $2.1. Finally, Return on Equity was 25% and Return on Invested Capital was 17%. Free cash flow in Q4 2025 reached $990 million compared to $960 million in Q4 2024. The main positive drivers were related to the deferred livestock income, particularly in US, and inventories reflecting strong revenue growth during the period. Despite $850 million in working capital consumption in 2025, the cash conversion cycle remained resilient and in line with prior year levels. For the full year, free cash flow totaled $400 million.

Speaker #4: Finally, return on equity was 25% and return on invested capital was 17%. Free cash flow in fourth quarter 2025 reached $990 million. Compared to $960 million in the fourth quarter 2024.

Speaker #4: The main positive drivers were related to the deferred livestock, particularly in the US, and inventories reflecting strong revenue growth during the period. Despite an $850 million working capital consumption in 2025, the cash conversion cycle remained resilient and in line with the prior year's levels.

Speaker #4: For the full year, free cash flow totaled $400 million. When we visited free cash flow breakeven, IFRS EBITDA exercised for 2025, the initial estimated EBITDA to a breakeven level was around $6 billion.

Guilherme Cavalcanti: When we visited free cash flow breakeven IFRS EBITDA exercise for 2025, the initial estimate EBITDA to a breakeven level was around $6 billion. However, considering the actual results, the EBITDA breakeven would be approximately $300 million lower. The main difference came from working capital, as mentioned earlier, mainly reflecting the deferred livestock effect and the decrease in inventories. On the other hand, CapEx came in about $100 million above estimates as we executed $1.1 billion in expansion CapEx during the period. We also saw a higher number of biological assets, largely driven by the increasing livestock volumes and prices, while the remaining items came in broadly in line with our estimates.

Speaker #4: However, considering the actual results, the EBITDA breakeven would be approximately $300 million lower. The main difference came from working capital, as mentioned earlier, mainly reflecting the deferred livestock effect and the decrease in inventories.

Speaker #4: On the other hand, CAPEX came in about $100 million above estimates. As we executed $1.1 billion in expansion CAPEX during the period. We also saw a higher number of biological assets, largely driven by the increasing livestock volumes and prices.

Speaker #4: While the remaining items came in broadly in line with our estimates. Finally, the higher cash tax paid in 2025 were mainly related to the tax payments associated with the results of 2024.

Guilherme Cavalcanti: Finally, the higher cash tax paid in 2025 were mainly related to the tax payments associated with the results of 2024. For 2026, and for the purpose of the EBITDA cash flow breakeven exercise, we can assume CapEx expenditures of $2.4 billion, of which $1.3 billion is for expansion and $1.1 billion is for maintenance, interest expenses of $1.15 billion, and leasing expenses of $500 million, and a consolidated effective tax rate of 25%. Just to highlight, it is still too early to estimate the variation in working capital and biological assets as there are many factors beyond our control, such as grain and livestock prices.

Speaker #4: For 2026, and for the purpose of the EBITDA cash flow breakeven exercise, we can assume a capital expenditure of $2.4 billion of which $1.3 billion is for expansion and $1.1 billion is for maintenance.

Speaker #4: Interest expenses of $1.15 billion and leasing expenses of $500 million, and a consolidated effective tax rate of 25%. Those two highlights, it is still too early to estimate the variation in working capital and biological assets, as there are many factors beyond our control.

Speaker #4: Such as grain and livestock prices. However, if you consider the same amount of working capital consumption and biological assets of 2025, EBITDA cash flow breakeven would be $5.7 billion in line with 2025 numbers mentioned above.

Guilherme Cavalcanti: However, if you consider the same amount of working capital consumption in biological assets of 2025, EBITDA cash flow breakeven would be $5.7 billion, in line with 2025 numbers mentioned above. On page 24, we present a historical free cash flow breakdown to help analysts' forecasts. Our leverage ended the year at 2.39x, in line with our long-term target of keeping net debt-to-EBITDA between 2x and 3x. In 2025, we also strengthened our balance sheet by extending our debt maturity profile, reaching an average debt term of approximately 15 years and an average cost of 5.7%. We have no significant debt maturities until 2031. The coupons of our debt are below Treasury until and including 2032 maturities.

Speaker #4: On page 24, we present a historical free cash flow breakdown to help analysts forecast. Our leverage ended the year at 2.39 times, in line with our long-term target of keeping net debt to EBITDA between 2 and 3 times.

Speaker #4: In 2025, we also strengthened our balance sheet by extending our debt maturity profile. Reaching an average debt term of approximately 15 years and an average cost of $5.7%.

Speaker #4: We have no significant debt maturities until 2031. The coupons of our debt are below Treasury until and including 2032 maturities. With 32% of our gross debt maturing beyond 2052 and approximately 90% of the total debt is at fixed rates.

Guilherme Cavalcanti: With 32% of our gross debt maturing beyond 2052, and approximately 90% of the total debt is at fixed rates. It's worth mentioning that despite the 8% increase in net debt in the last three years, net financial expenses remained at the $1.1 billion per year. Our $3.5 billion in revolving credit lines and $4.8 billion in available cash provides us the flexibility to continue executing our expansion CapEx, value creation projects, and shareholder returns while maintaining a healthy and robust balance sheet. For this reason, and given our strong cash position and leverage, we announced last night the payment of $1 per share in dividends to be paid on 17 June. With that in mind, I would like to turn it over to the operator for the question and answer session.

Speaker #4: It's worth mentioning that despite the 8% increase in net debt in the last three years, net financial expenses remained at the 1.1 billion per year.

Speaker #4: Our $3.5 billion in revolving credit lines and $4.8 billion in available cash provides us the flexibility to continue executing our expansion CAPEX value creation projects and shareholder returns while maintaining a healthy and robust balance sheet.

Speaker #4: For this reason, and given our strong cash position and leverage, we announced last night the payment of $1 per share in dividends to be paid in June 17th.

Speaker #4: With that in mind, I would like to turn to the question and answer session.

Speaker #1: Thank you, ladies and gentlemen. If there are any questions, please use the 'raise hand' button. Thank you. We have our first question from Lucas Ferreira with JP Morgan.

Operator: Thank you. Ladies and gentlemen, if there are any questions, please use the Raise Hand button. Thank you. We have our first question from Lucas Ferreira with J.P. Morgan. Mr. Ferreira, you may go ahead.

Speaker #1: Mr. Ferreira, you may go ahead.

Speaker #3: Hi, guys. Hope you listen to me well. So thanks for the time to ask the questions. I have two. The first one, if you can give us an update on the business environment for PPC.

Lucas Ferreira: Hi, guys. Hope you listen to me well. Thanks for your time to ask the questions. I have two. The first one, if you can give us an update on the business environment for PPC, especially in the US. There were some renovation works at the Russellville plants. I'm wondering if those are completed, if operations are running fine, if this could be an issue at all for the quarter, as well as any update you see in the market regarding prices. It seems that we are in an environment of a bit more supply than the Q1 of last year. If you see how robust the market is and how balanced the market is today. The second question is on the US beef operations.

Speaker #3: Especially in the US. But there were some renovation works at the Russellville plants. Wondering if those are completed. If operations are running fine. If this could be an issue at all for the quarter.

Speaker #3: As well as any updates you see in the market regarding prices. Seems that we are in an environment of a bit more supply and then the first quarter of last year.

Speaker #3: So if you see how robust is the market and how balanced the market today. And the second question is on the US beef operations.

Speaker #3: We saw pretty steep recovery in beef spreads over the last few weeks. So to what you attribute this? Obviously, demand remains strong. But being some capacity rationalizations in the industry.

Lucas Ferreira: We saw pretty steep recovery in beef spreads over the last few weeks. To what you attribute this, obviously demand remains strong, but there have been some capacity rationalizations in the industry. Any updates on the Greeley situation will also be welcome, in with regard to how that impacts your business and how you see the market for US Beef right now. Thank you very much.

Speaker #3: Any updates on the grilly situation will also be welcome. And with regards to how that impacts your business and how you see the market for US beef right now.

Speaker #3: Thank you very much.

Speaker #1: Hi, Lucas. Thank you for your question. And I will start here to talk about the update in terms of pilgrims. And after that, to Ashley, we'll give us the perspective of beef in the US.

Gilberto Tomazoni: Hi, Lucas. Thank you for your question. I will start here to talk about update in terms of Pilgrim's Pride, and after that, Wesley will give us the perspective of beef in US. As you mentioned before, we completed the transformation of three plants of Pilgrim's Pride already. One we transformed from a big bird to case-ready because we have a strong demand in the retail, and this strategy will support the retail growth of the demand of chicken. In the other two plants, in reality it is not a transformation. It's adequate to produce the raw material for our prepared business.

Speaker #1: And as you mentioned before, we completed the transformation of three plants. Of pilgrims. Already completed the one we transformed from a big bird to case ready.

Speaker #1: Because we have a retail. And this strategy was supported retail growth of the demand of chicken. And the other two plants we in reality is not a transformation.

Speaker #1: It's adequate to produce the raw material for our prepared business. Before we sell, we sell raw material; we sell the breast to the market.

Gilberto Tomazoni: Before we sell the breast to the market because we are not able to deliver the appropriate goods that our prepared food needs. Now, we invest in machines, and we are not need to sell and buy, and we buy the raw material. Now we deliver direct to our prepared businesses. This of course we catch the margin of the third party. I think in the end, we are keep best quality and able to react quickly in case of the increased demand. I understood that is a second point that you mentioned about supply demand.

Speaker #1: Because we are not able to deliver the appropriate cuts that our prepared food needs. Now we invest in machines and we are not new to sell and buy.

Speaker #1: And we buy the raw material. Now we deliver directly to our prepared business. This of course we catch the margin of the third party.

Speaker #1: I think we are keeping the best quality and are able to react quickly in case of an increase in demand. And I understood that is the second point you mentioned about supply and demand.

Gilberto Tomazoni: I can say to you the demand for chicken meat in US, not just in US, it's a global demand, is very high across all the chains. If you take into consideration in US the chicken placement in the beginning of the year grew around 3%, and the price of chicken breast increased in the market. What this show that a balance is supply and demand because we increased 3% the placement of chick and the price of the breast increases. USDA forecast for this year is that will be 2% growth in chicken supply.

Speaker #1: I can say to you, the demand for chicken meat in the US is not just in the US. It's a global demand. It's very high across all the chains.

Speaker #1: And if you take in consideration in the US the chicken placement in the beginning of the year. Grill around 3%. And the price of chicken breast increases in the market.

Speaker #1: What this showed is that we have a balanced supply and demand because we increased 3%. The placement of chick and the price of the breast increased. And if you see, USDA's forecast for this year is that there will be 2% growth in chicken supply.

Speaker #1: If you grow 3% and the price market increases, we can anticipate if the forecast is 2%, it will be a very good year for Pilgrim’s in the US.

Gilberto Tomazoni: If we grow 3% and the price market increase, we can anticipate if the forecast 2% will be a very good year for Pilgrim's Pride in US. I think this is two components. The verticalization of our raw material production, we get more margins in prepared. The growth of our prepared business in Pilgrim's Pride, Just BARE is a strong demand, and you are investing new factories. We see that this year will be a good year for Pilgrim's Pride.

Speaker #1: I think it's this is two components. The verticalization of our raw material production we get more margins. And prepare and the growth of our prepared business in pilgrims just bearing is have a strong demand and you are investing new factories.

Speaker #1: We see that this year will be a good year for pilgrims.

Speaker #4: Lucas, good morning. So you know fourth quarter was for us was a pretty good quarter. Given the market conditions on the beef side. You know it's common knowledge that given the market data that first you know the beginning year of the first quarter has been really tough.

Wesley Batista Filho: Lucas, good morning. You know, Q4 was for us a pretty good quarter given the market conditions on the beef side. You know, it's common knowledge that given the market data, the beginning of the year, the Q1 has been really tough, really difficult, very challenging. Probably the most challenging we've seen in this industry in a very long time. I don't know if there is any other time that we had such an actually negative spread for January and February ever.

Speaker #4: Really difficult. Very challenging. Probably the most challenging we've seen in this industry in a very long time. I don't know if there is any other time that we had such an, actually, a negative spread for January and February.

Speaker #4: Ever. You know, and it seems now that current data shows that March is showing that it's going to be a little bit—you know, it's going to become better.

Wesley Batista Filho: It seems now that current data show that March is showing that it's gonna be a little bit, you know, it's gonna become better, sharply better than where we were from January to February. But let's see what comes out of that. You know, one of the things that has happened in this scenario that we have very low cattle availability and very low processing volumes is that the market has become more volatile than we were.

Speaker #4: Sharply better than where we were from January and February. But let's see what comes out of that. You know when we are in one of the things that has happened in this scenario that we have very low cattle availability and very low processing volumes is that the market has become more volatile than we were used to in this market.

Gilberto Tomazoni: We're used to in this market. You know, you see big fluctuations in cutout, big fluctuations in cattle, more so than what we're used to. That's just a fact of having such a small volume. You know, if, you know, if the volume is a little bit higher, it has big impact and it's become a little bit more volatile. When it comes to the strike and really, you know, it's very difficult to forecast how that, you know, a strike would go on. We have a very good deal in front of that local.

Wesley Batista Filho: We're used to in this market. You know, you see big fluctuations in cutout, big fluctuations in cattle, more so than what we're used to. That's just a fact of having such a small volume. You know, if, you know, if the volume is a little bit higher, it has big impact and it's become a little bit more volatile. When it comes to the strike and really, you know, it's very difficult to forecast how that, you know, a strike would go on. We have a very good deal in front of that local.

Speaker #4: You know you see big fluctuations in cut out. Big fluctuations in cattle. More so than what we're used to. So that's just a fact of having such a small you know a small volume if you you know if the volume is a little bit higher it has big impact.

Speaker #4: And it's become a little bit more volatile. When it comes to the striking really you know it's very difficult to forecast how that you know a strike would go on.

Speaker #4: We have a very good deal in front of that local. We actually just did a national deal with 14 other unions in red meat.

Gilberto Tomazoni: We actually just did a national deal with 14 other unions in red meat, 14 other locals from the same union in red meat. You know, it's a historic union company deal. You know, we have a variable pension plan. That's the first time in forever that the industry has brought back a pension, something like that for people when they retire, for our team members. You know, we have a very good deal actually. I think I would say it's probably one of the most innovative deals that we've had in a long time in this industry. Well, let's see. We think that. We hope this gets resolved as soon as possible.

Wesley Batista Filho: We actually just did a national deal with 14 other unions in red meat, 14 other locals from the same union in red meat. You know, it's a historic union company deal. You know, we have a variable pension plan. That's the first time in forever that the industry has brought back a pension, something like that for people when they retire, for our team members. You know, we have a very good deal actually. I think I would say it's probably one of the most innovative deals that we've had in a long time in this industry. Well, let's see. We think that. We hope this gets resolved as soon as possible.

Speaker #4: 14 other locals from the same union in red meat. And it's you know it's a historic union company deal. We you know we have a variable pension plan that's the first time in forever that the industry has brought back a pension something like that for people when they retire for our team members.

Speaker #4: So you know we have a. Very good deal actually. Even I think I would say it's probably one of the most innovative deals that we've had in a long time in this industry.

Speaker #4: So let's see. We think that we hope this gets resolved as soon as possible.

Gustavo Troyano: Thank you guys. Thank you very much.

Lucas Ferreira: Thank you guys. Thank you very much.

Speaker #1: Thank you guys. Thank you very much.

Operator: Yes. We have, Mr. Gustavo Troyano from Itaú who would like to ask a question. Please go ahead, Mr. Troyano.

Speaker #3: Please gentlemen we have Mr. Gustavo Troiano from Ital who would like to ask a question. Please go ahead Mr. Troiano.

Gustavo Troyano: Hello, everyone. Thanks for taking my question. My first question is on Seara and related to chicken supply here in Brazil. We acknowledge that discussions on the supply side should always be on a relative basis to demand, which seems quite strong at this point. But just wanted to get your updated thoughts on the balance between chicken supply here in Brazil, what to expect going forward as we move into Q2 2026. If you guys are expecting the chicken supply increase to outpace demand in a way that we could see some profitability compression going forward. That would be the first question.

Speaker #5: Hello everyone. Thanks for taking my question. My first question is on Seattle. And related to chicken supply here in Brazil. We acknowledge that discussions on the supply sides should always be on a relative basis to demand which seems quite strong at this point.

Speaker #5: But just wanted to get your updated thoughts on the balance between chicken supply here in Brazil. What to expect going forward as we move into the second quarter of 2026.

Speaker #5: If you guys are expecting the chicken supply increase to outpace demand in a way that we could see some profitability compression going forward. So that would be the first question.

Gustavo Troyano: The second one, still on US beef and a follow-up in the first question actually is, would you say that the current balance between slaughtering capacity in the US and demand, and cattle availability will imply some capacity adjustments going forward from other players or even from you guys? What could you say on further capacity adjustments going forward because cattle availability is restricted right now, just wanted to get your updated thoughts on that as well. Thank you very much.

Speaker #5: And the second one still on US beef and a follow up in the first question actually is would you say that the current balance between slaughtering capacity in the US and demand and cattle availability will imply some capacity adjustments going forward from other players or even from you guys?

Speaker #5: So, what could you say on further capacity adjustments going forward? Because cattle availability is restricted right now. So, just wanted to get your updated thoughts on that as well.

Speaker #5: Thank you very much.

Gilberto Tomazoni: Thank you, Gustavo. Talking about chicken in Brazil and Seara, and after that, Wesley Batista will complete the answer about beef in the US. When you go to chicken in Brazil, the balance between supply and demand for chicken is still not very clear to us. On one hand, we have strong and growing international demand and new cases of avian influenza in several countries that produce as competitors of Brazil, and this could boost demand even further. On the other hand, we have a 2-3% increase in chick placement up to February. This is a reasonable limit for growth in Brazil. There is some news that chicken breeder stock has increased. In this scenario, it's difficult to predict the unfolding events if production exceeds market capacity.

Speaker #4: Thank you Gustavo. Talking about chicken in Brazil and Seattle and after that US it will be complement the answer about beef in the US.

Speaker #4: When you go to chicken in Brazil, the balance between supply and demand for chicken is still not very clear to us. On one hand, we have strong and growing international demand and new cases of poultry farming influenza in several countries.

Speaker #4: We've encountered that produce that's a competitor of Brazil. And this could boost demand even further. The other end we have two, three percent to increase the chick place in up to February.

Speaker #4: This is a reasonable limit for growth in Brazil. There is some news that chicken breeders' talk has increased in this scenario. It's difficult to predict the unfolding events if production exceeds market capacity.

Gilberto Tomazoni: In this case, the industry, the sector has many tools to manage this. For example, we can export more fertile eggs. We can reduce the average age of the breeding stock. We can reduce the weight of the birds, among others. It means that so far the market is very balanced, and we see a strong demand in the international market. If, because if you look, the breeders can increase more the volume in the domestic market, each industry needs to take its own decisions, but they have a lot of ways to manage this supply because chicken is not still in the farm. It's still placed. It is in the genetic. I can say I can talk to you about what on our side, how we are what we are doing.

Speaker #4: But in this case the industry, the sector, the industry has many of tools to manage this. For example we can export more fertile eggs.

Speaker #4: We can reduce the average age of the breeding stock. We can reduce the weight of the birds. Among others. Means that so far the market is very balanced in the market and we see a strong demand in the international market.

Speaker #4: If, because if you look for the breeders, can increase more the volume—domestic market—each industry needs to take its own decisions. But they have a lot of ways to manage this supply.

Speaker #4: Because chicken is not still in the farm. It's still placed. It is in the genetic. I can say I can talk to you about what, in our side, how we are, what we are doing.

Gilberto Tomazoni: We are focused on strengthening our export leadership. It's what we have, and enriching our value add mix in domestic market. I think it's both strategy we have. We have a well-positioned in international market and well-positioned domestic market, and we are adding value in being more innovative in terms of the way that you present the product to the consumers. Good morning, Gustavo. On the US beef, you know, this question about capacity adjustments is very difficult for me to answer about, especially when it's something that's not related to our business directly, right? So it would be competitive. So it's very difficult for me to respond on that. It's clear that there is more capacity in the US than there is kind of available.

Speaker #4: We are focused on extraction of our export leadership. It's what we have and enriched our value add mix in domestic market. I think it's the both strategy we have.

Speaker #4: We are well positioned in the international market and well positioned in the domestic market. And we are at value in being more innovative in terms of the way that you present the product to the consumers.

Wesley Batista Filho: Good morning, Gustavo. On the US beef, you know, this question about capacity adjustments is very difficult for me to answer about, especially when it's something that's not related to our business directly, right? So it would be competitive. So it's very difficult for me to respond on that. It's clear that there is more capacity in the US than there is kind of available.

Speaker #4: Hey, good morning, Gustavo. On the US beef—you know, this question about capacity adjustments is very difficult for me to answer, especially when it's something that's not related to our business directly, right?

Speaker #4: So it would be competition. It's very difficult for me to respond on that. It's clear that there is more capacity in the US than there is cattle available.

Gilberto Tomazoni: In the US, not too many years ago, 4 years ago, you know, processed 33 million head, and now we're gonna be below 27, so or we're around 27, sorry. You know, that in itself shows that, yeah, there is excess capacity. Having said that, it's very difficult for me to respond about something that's regarding other companies.

Wesley Batista Filho: In the US, not too many years ago, 4 years ago, you know, processed 33 million head, and now we're gonna be below 27, so or we're around 27, sorry. You know, that in itself shows that, yeah, there is excess capacity. Having said that, it's very difficult for me to respond about something that's regarding other companies.

Speaker #4: I mean the US not too many years ago four years ago you know had a process 33 million head and now we're going to be below 27.

Speaker #4: So we're around 27. Sorry. So you know that in itself shows that yeah there is excess capacity. Having said that it's very difficult for me to respond about something that's regarding other companies.

Thiago Bortoluci: Thank you, guys. Very clear.

Gustavo Troyano: Thank you, guys. Very clear.

Speaker #1: Thank you guys. Very clear.

Operator: Here our next question comes from Lucas Mussi with Morgan Stanley. Mr. Mussi, you may go ahead.

Speaker #3: Thank you. Our next question comes from Lucas Moosey with Morgan Stanley. Mr. Moosey you may go ahead.

Lucas Mussi: Hi, everyone. Thanks for taking my question. My first one is related to Brazil beef in Australia. If you could talk to us a bit about how you're thinking about the export environment in the context of Brazil and also Australia eventually reaching the limit of the export quota to China, how are you thinking about how volumes are gonna behave perhaps in H2 of this year? What are you thinking about your options here, and potential impact to the business divisions? The second one for Guilherme. If you could share more details on derivative lines on your P&L that went a bit lower this quarter, that would be helpful. Also, I know that we're still a bit early to talk about concrete working capital expectations for this year.

Speaker #1: Hi everyone. Thanks for taking my question. My first one is related to Brazil beef and Australia. If you could talk to us a bit about how you're thinking about the export environment in the context of Brazil and also Australia.

Speaker #1: Eventually reaching the limit of the export quota to China. How you're thinking about how volumes are going to behave. Perhaps in the second half of this year.

Speaker #1: What are you thinking about your options here? And potential impact to the business divisions. And the second one for Guilherme: if you could share more details on derivative lines on your P&L that went a bit lower this quarter, that would be helpful.

Speaker #1: And also I know that there's still we're still a bit early to talk about concrete working capital expectations for this year. But if you had to evaluate looking at where commodity future is today or grains for livestock you know what would be your assessment on working capital potential as things stand today for the year?

Lucas Mussi: If you had to evaluate looking at where commodity futures is today for grains, for livestock, you know, what would be your assessment on working capital potential as things stand today, for the year, you know. Maybe a little bit below 2025, in line with 2025, if you have any on working capital. Thank you very much, guys.

Speaker #1: You know maybe a little bit below 2025 in line of 2025 if you have any on working capital. Thank you very much guys.

Gilberto Tomazoni: Thank you, Lucas, for your question. Let me separate, I think in Australia to Brazil, there is a different scenario. Australia, we are not see any challenge in terms of the quota in Australia to China because Australia has a strong market demand and a very strong presence in Japan and Korea and all of the Asian markets, and US as well, and Europe. Australia is easy to manage the volume for each one of this market, that we are not really worried about this situation. In Brazil, may be more complicate. I will talk related to that. Our Friboi team is very confident that they will be able to deliver in 2000...

Speaker #4: Thank you Lucas for your question. Let me separate. I think it's Australia as a Brazil there is a different scenario. Australia we are not seeing any challenge in terms of the after the quote of in Australia to China because Australia has a strong market demand at a very strong presence in Japan and Korea and all of the Asian markets.

Speaker #4: And US as well. And Europe. Then Australia is easy to manage the volume for each one of these markets. That we are not really worried about this situation.

Speaker #4: In Brazil, it may be more complicated. But I will talk related to that. But our pre-boy team is very confident that they will be able to deliver in 2000 this year, 2026, this in results with the line that the last year.

Gilberto Tomazoni: 2026, like this year, the in-line results in line with last year. Why we are confident on that? Global demand for protein is high, especially for beef. China's quota, we are expecting to end by mid-year. In reality, we don't know how China will manage this volume restriction. I believe that some countries will likely not be able to complete their quotas. We cannot speculate, but this is a fact. Regarding this situation, Friboi has developed a new international market, new sales chain, investing heavily in value added and combined with customer service. An example of this strategy is the Friboi+ program.

Speaker #4: And why we are confident on that? Global demand for protein is high. Especially for beef. China's quota if you talk about we are expecting to end by the mid-year.

Speaker #4: And in reality, we don't know how China will manage this volume restriction. I believe that some countries will likely not be able to compete their quotas.

Speaker #4: But this we cannot speculate. But this is a fact. Regardless, this situation, Pre-boy has developed a new international market, a new sales chain, and is investing heavily in value added, combined with customer service.

Speaker #4: An example of this strategy is the program of pre-boy mine. Pre-boy plus now it I think is the last week at the supermarket convention in Rio de Janeiro.

Gilberto Tomazoni: Now I think it's the last week at the supermarket convention in Rio de Janeiro. Nielsen, you know, gave a presentation comparing a store with a regular butcher shop to one with Friboi+. The results showed that the store with the program has a higher revenue and 40% higher overall sales, not just the butcher area, overall sales. That is it's a strong program to support the growth of our customers. At the same time, the retailers now face a challenge because they need to improve the quality of the sales in the stores. Because this shift in for more protein, this program and what GLP-1 and so on, that is booming the consumption of protein.

Speaker #4: Nielsen—you know, Nielsen gave a presentation comparing a store with a regular butcher shop to one with Pre-Boy Plus. And the result showed that the store with the program has a higher revenue and 40% higher overall sales, not just in the butcher area.

Speaker #4: Overall sales there is a it's a strong program to support the growth of our customers. And at the same time the retailers now face a challenge because they need to improve the quality of the sales in the stores.

Speaker #4: Because this shift is for more protein, this program with GLP-1 and so on is booming the consumption of protein. They need to enhance the portfolio in the retail.

Gilberto Tomazoni: They need to enhance the portfolio in the retail. In our program is, I think it fit perfect with this trend in the necessity of the supermarket. The other point, I believe in H2, when the supply of feedlot cattle increase, this coinciding with the end of quota of China, which is large, and we know that China is the largest pork sale chain. The price of cattle will likely be affected. I think this will be correlation. Because of that, we are so confident that we are able to deliver this year in results in line with last year.

Speaker #4: And in our program is I think is fit perfect with this trend in the necessity of the supermarket. The other point I believe the second half of the year when the supply of feedlot cow increase this coinciding with the end of quota of China which is largely and we know that China is the largest for sale chain the price of cow will likely be affected.

Speaker #4: I think this will be correlation because of that, we are so confident that we are able to deliver this year and results in line with last year.

Guilherme Cavalcanti: On the derivatives line, what you saw there is any sort of derivatives that's not related to the operations. The recent volatility in currencies and other commodity prices made this number higher, despite we have a very limited bare for those types of derivatives. Now on the working capital cycle side, well, so far, what can I say? It's only about what we see in the first quarter. Q1 2025, we have a slightly lower working capital consumption than Q1 2024, despite the $200 million higher impact of the deferred livestock.

Speaker #1: Lucas so on the derivatives line what you saw there is any sort of derivatives that's not related to the operations. And the recent volatility in currencies and other commodity prices made this number higher.

Speaker #1: Despite we have a very limited VAR for those types of derivatives. Now on the working capital cycle side what so far what can I say it's only about the what we're seeing the first quarter.

Speaker #1: So first quarter 2025 we have a slightly lower working capital consumption than the first quarter of 2024. Despite the 200 million higher impact of the deferred livestock.

Guilherme Cavalcanti: Again, it's too early to say for the whole year, but if considering just the Q1, we had a little lower consumption of working capital. Doesn't mean a lower cash consumption given that the operational side is likely worse.

Speaker #1: So again it's too early to say for the whole year. But if considering just the first quarter we had a little lower consumption of working capital.

Speaker #1: Doesn't mean a lower cash consumption given that the operational side is likely worse.

Lucas Mussi: Very clear, gentlemen. Thank you very much.

Speaker #3: Very clear gentleman. Thank you very much.

Operator: Thank you. Our next question comes from Thiago Duarte at BTG Pactual. Mr. Duarte, you may go ahead.

Speaker #4: Thank you. Our next question comes from Tiago Duarte at BTG. Mr. Duarte you may go ahead.

Thiago Duarte: Hi. Hello, everybody. Good morning. Yeah, two follow-up questions going back into US beef and then Seara. Wesley mentioned, you know, the strong quarter considering the circumstances that you had, but I'm still wondering what you believe justifies that performance. I mean, a Q over Q margin rebound. It's not something that typically happens considering the seasonality in Q4 and even looking at the industry cutout spread. So my question, you mentioned the volatility as being something that's even higher than usual, and maybe that has something to do with a particularly good quarter in Q4. But if you could elaborate a little bit more on what you think justifies that in this quarter in particular.

Speaker #5: Hi hello everybody. Good morning. Yeah two follow-up questions going back into US beef and then Seara. Wesley mentioned you know the strong quarter considering the circumstances that you had.

Speaker #5: But I'm still wondering what you believe justifies that performance. I mean, a Q-over-Q margin rebound is not something that typically happens, considering the seasonality in Q4, and even looking at the industry cutout spread.

Speaker #5: So my question you mentioned the volatility has been something that's even higher than usual and maybe that has something to do with particularly good quarter.

Speaker #5: In Q4 but if you could elaborate a little bit more on what you think justifies that and this quarter in particular. And the follow-up question on Seara I think Tomazoni talked a lot about chicken demand and protein demand in general.

Thiago Duarte: The follow-up question on Seara, I think Tomazoni talked a lot about chicken demand and protein demand in general. My sense is that what really drove this very good margin at the Seara division in the quarter was really related to chicken, fresh chicken, in natura chicken export, as opposed to the domestic prepared food portfolio. My question is really if that understanding is accurate, in terms of, again, in natura margin versus prepared food margins for Seara in the quarter. Thank you.

Speaker #5: So my sense is that what really drove this very good margin at the Seara division in the quarter was really related to chicken fresh chicken in natura chicken export as opposed to the domestic prepared food portfolio.

Speaker #5: So my question is really if that understanding is accurate in terms of, again, in natura margin versus prepared food margins for Seara in the quarter.

Speaker #5: Thank you.

Guilherme Cavalcanti: Sure. Good morning. You know, especially when the market has such a volatility in cattle prices and cutout values, you know, it's very possible, especially when you look at just the quarter, right? That you have a quarter that you position yourself really well, another one that you position yourself a little bit worse. You know, between quarters, you could have those, you know, just from a positioning perspective, you could either have a very good look really good or look a lot worse than you expect. I'll, you know, just given such intense volatility more than we're expecting.

Wesley Batista Filho: Sure. Good morning. You know, especially when the market has such a volatility in cattle prices and cutout values, you know, it's very possible, especially when you look at just the quarter, right? That you have a quarter that you position yourself really well, another one that you position yourself a little bit worse. You know, between quarters, you could have those, you know, just from a positioning perspective, you could either have a very good look really good or look a lot worse than you expect. I'll, you know, just given such intense volatility more than we're expecting.

Speaker #4: Tiago good morning. So you know especially when the market is has such a volatility in cattle prices and cutout values you know it's very possible especially when you look at just the quarter right that you have a quarter that you position yourself really well another one that you position yourself a little bit worse and you know between quarters you could have those you know just from a positioning perspective you could be either have a very you know very good it looked pretty good or look a lot worse than you expect and all you know just given such a you know intense volatility that more than we are expecting.

Guilherme Cavalcanti: I saw some reports, you know, maybe question a little bit about if there was any hedging or derivatives there. There was nothing significant from that perspective. I think it's just when markets are more volatile and, you know, you make positions selling product out front and all of that, sometimes you get good positions, sometimes it could get worse. I would. You know, I think the best way to look at, you know, performance is look at overall longer term than just one quarter. One quarter could kind of be misleading, positive or negative, either way, in this sort of business, especially with the sort of volatility that we've been having on cutout and cattle prices. Yeah, that's on this.

Wesley Batista Filho: I saw some reports, you know, maybe question a little bit about if there was any hedging or derivatives there. There was nothing significant from that perspective. I think it's just when markets are more volatile and, you know, you make positions selling product out front and all of that, sometimes you get good positions, sometimes it could get worse. I would. You know, I think the best way to look at, you know, performance is look at overall longer term than just one quarter. One quarter could kind of be misleading, positive or negative, either way, in this sort of business, especially with the sort of volatility that we've been having on cutout and cattle prices. Yeah, that's on this.

Speaker #4: I saw some reports you know maybe question a little bit about if there was any hedging or derivatives there. There was nothing significant from that perspective.

Speaker #4: I think it's just when markets are more volatile and you know you make positions selling out selling product upfront and all of that sometimes you get good positions sometimes you could get worse.

Speaker #4: I would, you know, I think the best way to look at, you know, performance is to look at overall longer term rather than just one quarter. One quarter could kind of be misleading, positive or negative, either way.

Speaker #4: In this sort of business especially with this sort of volatility that we've been having on cutout and cattle prices. Yeah that's my view.

Gilberto Tomazoni: Thiago, let me to make some assertive position about what you said. If you understood well, you ask for the margin of prepared foods in domestic market and versus export chicken, commodity chicken to international markets. If you take just in consideration the margin, yes, the margin of international chicken was higher than the margin of prepared in domestic market. Say that we improve the margin of the prepared food in domestic market. If you remember some quarters ago, I mentioned that we are advancing as a process to improve our price management in order to get the real value of the brand in domestic markets.

Speaker #5: Tiago let me to make some assessment position about what you said. If the margin if you understood well you are margin you ask for the margin of prepared foods in domestic market and versus export chicken commodity chicken to international market.

Speaker #5: If you take just in consideration the margin yes the margin of international chicken was higher than the margin of prepared in domestic market. But say that we improve the margin of the prepared food in domestic market.

Speaker #5: If you remember some quarters ago, I mentioned that we are advancing a process to improve our price management in order to get the real value of the brand in the domestic market.

Gilberto Tomazoni: This is a continuous process. We are now focused on taking advantage of the perception of the brand we have in the market, the penetration of the brand and the rebuy of the brand from the consumers. We are strengthening our process in order to get this brand. Because of that, we are continuously improving the margin in the domestic market. Yes, you are right. If you compare this quarter, the margin of the international market for chicken was higher than the margin of the Brazilian domestic market.

Speaker #5: And this is a continuous process. We are now focused on take the advantage of we have the perception of the brand we have in Seara in the market.

Speaker #5: The penetration of the brand and the rebuy of the brand from the consumers. And we are strengthening our process in order to get this value.

Speaker #5: And because of that we are continuously improving the margin in domestic market. But yes you are right if you compare this quarter the margin of international market for chicken was higher than the margin of prepared in domestic market.

Guilherme Cavalcanti: Thiago, just to complement something on this that I meant to say, and I forgot. You know, for sure this comparison quarter by quarter could create a little bit of that when it comes to positioning of how you sell forward and how you buy and all that. Having said that, we're very satisfied with the way we're operating. There's still opportunities for sure, and there's things that we're working on.

Speaker #4: Tiago just to complement something on beef that I meant to say and I forgot. You know for sure this comparison quarter by quarter could create some a little bit of that when it comes to position.

Speaker #4: Positioning of how you sell forward and how you buy and all of that. But having said that we're very satisfied with the way we are operating.

Speaker #4: There are still opportunities for sure, and there are things that we're working on. But, you know, when we compare our operations—just the things that, you know, how we are running our plants and how we are running our, you know, our sales strategy, our procurement strategy—compared to a few years ago, we think we've made a lot of progress, and I think we're doing a lot better than we've been doing in the past.

Guilherme Cavalcanti: You know, when we compare our operations, just the things that, you know, and how we are running our plants, and how we are running our sales strategy, our procurement strategy, compared to a few years ago, we think we've made a lot of progress and I think we're doing a lot better than we've been doing in the past.

Thiago Duarte: It's all very clear. Thank you.

Speaker #5: That's all very clear. Thank you.

Guilherme Cavalcanti: Next, Mrs. Isabella Simonato from Bank of America would like to ask a question. Please go ahead, Mrs. Simonato.

Operator: Next, Mrs. Isabella Simonato from Bank of America would like to ask a question. Please go ahead, Mrs. Simonato.

Speaker #4: Next, Mrs. Isabella Simonato from Bank of America would like to ask you a question. Please go ahead, Mrs. Simonato.

Isabella Simonato: Simonato.

Gilberto Tomazoni: Simonato.

Speaker #6: Come on up.

Isabella Simonato: Hi. Good morning, everyone. Thank you for taking the questions. First, it's on the working capital for the quarter, right? You mentioned the deferred payment of livestock as well as inventories. Can you just give a little bit more details on the inventory performance and versus where you were expecting, right? When you mentioned in Q3 for the remainder of the year, what changed and how can that impact be postponed or translated into 2026 performance? Second, on Seara, you were mentioning, right, Gilberto Tomazoni about the margins in Brazil. Can you comment how you're seeing Brazilian consumers behaving the beginning of the year, if there is room to increase a little bit prices and if volumes have picked up?

Speaker #7: Hi, good morning everyone. Thank you for taking the questions. First, on the working capital for the quarter—you mentioned the deferred payment of livestock as well as inventories.

Speaker #7: Can you just give a little bit more detail on the inventory performance versus where you were expecting, right? When you mentioned in Q3 for the remainder of the year, what changed, and can—or how can—that, if there is any impact, be postponed or translated into 2026 performance?

Speaker #7: And second on Seara you were mentioning right Amazonia about the margins in Brazil. Can you comment how you're seeing Brazilian consumers behaving the beginning of the year if there is room to increase a little bit prices and if volumes have picked up.

Isabella Simonato: We noticed that retailers were running with lower inventories in the end of 2025, and there wasn't any significant change in behavior in the beginning of the year. Finally, if you could give us a brief overview of how your grain inventories are and how you're seeing feed costs for the remainder of the year. Thank you.

Speaker #7: We noticed that retailers were running with lower inventories at the end of 2025, and there was not any significant change in behavior at the beginning of the year.

Speaker #7: And finally, if you could give us a brief overview: how are your grain inventories, and how you're seeing feed costs for the remainder of the year.

Speaker #7: Thank you.

Guilherme Cavalcanti: On the working capital cycle, Isabella, every Q4 is a quarter that we decrease inventories, and we rebuild them in Q1. The same happens to the livestock, which we postpone payments from one year to the other. Between 2024 and 2025 and 2026, we postponed this year $600 million in livestock. Last year, we had postponed $400 million. We had a $200 million better impact on Q4. That will be a $200 million worse impact in Q1 that I mentioned in the previous question. In the inventory side, the same thing. We are seeing the same level of inventory rebuild that we saw in the last years.

Speaker #6: So on the working capital cycle Isabella. So every fourth quarter is a quarter that we decrease inventories and we rebuild them in the first quarter.

Speaker #6: And the same happens to the livestock which we postpone payments from one year to the other. Between 2024 and 2025 and 2026 we postponed this year 600 million dollars in livestock last year we had postponed 400 million dollars.

Speaker #6: So we had a 200 million better impact on the fourth quarter that will be a 200 million worse impact in the first quarter that I mentioned in the previous question.

Speaker #6: And that's it. And in inventory side the same thing. We are seeing the same level of inventory rebuild that we saw in the last years.

Gilberto Tomazoni: Isabella, thank you for your question. When you look, you have two separate questions. One is, if I understood well, one is related to the behavior of the consumer in domestic market, which we see that the market start a little bit weak in the beginning of the year, in January, but they back. Now when we look for our sales, we are grow the sales compared to the last year, but with different mix, with the value add mix growing much faster than the low, the traditional and low value added. It's difficult to say what is value added or not value added, it's prepared. Say, look, I call the traditional, they are selling less than the innovation.

Speaker #4: Isabella. Thank you for your question. When you look for you have two separate questions. One is if I understood well one is related to the behavior of the consumer in domestic markets with Seara.

Speaker #4: We see that the market start a little bit weak in the beginning of the year in January. But they back now we are when we look for our sales we are grow the sales compared to the last year.

Speaker #4: But with different mix. With the value add mix growing much faster than the low the traditional low value added it's difficult to say what is value added or not value added.

Speaker #4: It's prepared. But look, I call the traditional—they are selling less than the innovation. We have a huge growth in the innovation line with high-protein products, air fry products, products designed for air frying, clean-labeled products.

Gilberto Tomazoni: We have a huge growth in the innovation line with the high protein products, air fry product design for air frying products, clean label products. This kind of innovation grows much faster than the other ones. On average, when you compare this year with last year, we are growing. Even with some challenges and some different chains, but it's growing. To be clear, it started very tough in the beginning and recovered. Now our sales are higher than last year for prepared. When you talk about the cost, I think you talk about grains, because there is a lot of consideration.

Speaker #4: This kind of innovation they grow much faster than the other ones. But average when you compare this year with the last year we are growth.

Speaker #4: Even some challenge and some different change. But it's growing. But it start as just to be clear. It start very tough in the very not but tough in the beginning and recover now we are our sale is higher than the last year.

Speaker #4: For prepare. And when you talk about the cost I think you talk about grains because there is a lot of consideration. We have different view in terms of corn and soya bean meal with these two key elements from our feed.

Gilberto Tomazoni: We have different perspectives with different views in terms of corn and soybean meal, with these two key elements for our feed. In the corn market, we see an upward trend. We should expect higher cost in 2026 due to the outlook for reducing the global stock and solid demand, increased crude oil price that's boosting ethanol margin, as well as the cost and availability of fertilizers, US acreage at risk given the soybean ratio, and the second crop in Brazil in face of some climate risk. Net, we expect higher cost for corn. In the soybean meal, we see price stability. Due the...

Speaker #4: In the corn market, we see an upward trend. We should expect higher costs in 2026. And that's due to, if you look, the reducing global stock and solid demand.

Speaker #4: Increasing the crude oil price that boost in ethanol margin as well the cost and availability of fertilizers. US acreage at risk given the soya bean ratio.

Speaker #4: And the second crop in Brazil in phase of some climate risk. That we are I think is we expect higher cost for corn. In the soya meal soya bean meal we see prices stability.

Speaker #4: And do the if you look for the crush margin they are positive. And has the crush margin are positive we result in as abundant supply.

Gilberto Tomazoni: If you look for the crush margin, they are positive, and as the crush margin are positive, we resulting in abundant supply. In the other part, weak Chinese demand due to the tight pork margin in the market. I think it's for soybean meal, we need to monitor US acreage issue and the biofuel policy. Anyway, our outlook remain bearish.

Speaker #4: And the other part we Chinese demand do the tight pork margin in the market. But I think it's for soya bean meal we need to monitor the US acreage issue and the biofuel policy.

Speaker #4: But anyway our outlook remain bearish.

Thiago Bortoluci: Super clear. Thank you very much.

Isabella Simonato: Super clear. Thank you very much.

Speaker #5: So, Berkeley, thank you very much.

Operator: Thank you. Our next question comes from Henrique Brustolin with Bradesco BBI. You may go ahead, Mr. Brustolin.

Speaker #4: Thank you. Our next question comes from Enrique. Enrique Bristolen with Bradesco. You may go ahead, Mr. Bristolen.

Henrique Brustolin: Hello, everyone. Thanks for taking my questions. I have two. The first on US beef. Wesley, if you could comment about the Mexico cattle imports, right? They have been shut for a while now. Maybe this could be a discussion, the reopening could be a discussion amid the higher spot prices in the US. It'd be great to hear your thoughts in how relevant that could be in shaping the outlook for 2026, if we saw a reopening of the animal imports from Mexico to the US. That would be the first one. The second is a quick follow-up on Seara. Seara has been through a very big investment cycle over the past few years.

Speaker #7: Hello everyone. Thanks for taking my questions. I have two the first on US beef. Wesley if you could comment about the Mexico cattle imports right.

Speaker #7: They have been shut for a while now. Maybe this could be a discussion—the reopening could be a discussion—amid the higher prices in the US.

Speaker #7: So it would be great to hear your thoughts in how relevant that could be in shaping the outlook for 2026. If we saw reopening of the animal imports from Mexico to the US.

Speaker #7: That would be the first one. And the second is a quick follow up on Seara. But Seara has been through a very big investment cycle over the past few years.

Henrique Brustolin: Would be great just to hear how those investments have already ramped up and what would you expect for volume growth into 2026 as probably you complete the ramp of some of those plans. Thank you very much.

Speaker #7: Would be great just to hear how those investments have already ramped up. And what would you expect for volume growth into 2026 as probably complete the ramp of some of those plants?

Speaker #7: Thank you very much.

Wesley Batista Filho: Henrique, good morning. On Mexico, difficult to tell when that's gonna reopen. I mean, it's very meaningful. It's 1.2 to 1.5 million head per year. It's more than the size of a double shift plant, right? It's a big volume, and it's very important, especially to the South of the US. I mean, the USDA is doing a good job in doing all it can to keep the disease outside of the US. They are, you know, working on the sterile flies and all of that. Mexico obviously is also trying to get this resolved as soon as possible.

Speaker #4: Mahiki, good morning. So, on Mexico, it's difficult to tell when that's going to reopen. I mean, it's very meaningful. It's 1.2 to 1.5 million head per year.

Speaker #4: So, it's more than the size of a double-shift plant, right? So, it's a big volume, and it's very important, especially to the South of the US.

Speaker #4: I mean the USDA is doing all its I mean it's doing a good job in doing all we can to keep the disease outside of the US.

Speaker #4: They are working on this sterile flies and all of that. And Mexico obviously is also trying to get this result as soon as possible.

Wesley Batista Filho: For me to be able to tell you. Like, I hope that this would get resolved within the year, but I have no way to forecast and to even have an indicator of if that's gonna really happen anytime soon, so. It's really important. It's probably the most important short term change that could happen to this whole beef supply and demand equation. The most relevant in the short term, for sure, is this whole Mexico thing. It's very important, especially for the South of the US. Again, it's very difficult for me to tell you know, a forecast. I hope it opens this year or as soon as possible, but it's very difficult to forecast.

Speaker #4: But for me to be able to tell you that I hope that this would get resolved within the year. But I have no way to forecast and to even have an indicator of if that's going to really happen.

Speaker #4: Anytime soon. So, but it's really important—it's probably the most important short-term change that could happen to this whole beef supply and demand equation.

Speaker #4: The most relevant and the in the short term for sure it's this whole Mexico thing. It's very important especially for the south of the US.

Speaker #4: But again it's very difficult for me to tell you forecast. I hope it opens this year or as soon as possible. But it's very difficult to forecast.

Gilberto Tomazoni: Henrique, about the investment in Seara, all of them will be completed this year. With it completed, the additional capacity will be around 10 to 13%. I will say 10 to 13%, but it can depend on the mix. There's some mix that is less volume, high value, but it depends on that. You can consider 10 to 13% in terms of volume capacity growth.

Speaker #4: Enrique and about the investment of Seara. All of them will be completed this year. And we think completed the additional capacity will be around 10, 13 percent.

Speaker #4: I would say 10, 13 percent can depend on the needs. Some mix that is less volume high value but depends on that. But you can consider 10, 13 percent in terms of volume capacity growth.

Henrique Brustolin: Very clear. Thank you very much.

Speaker #7: Very clear. Thank you very much.

Operator: Our next question comes from Benjamin Theurer with Barclays. You may go ahead, Mr. Theurer.

Speaker #4: Your next question comes from Benjamin Thurer with Barclays. You may go ahead Mr. Thurer.

Benjamin Theurer: Yeah. Good morning, and thanks for taking my question. Just following up real quick on the CapEx side. I think you said about $1.4 billion for expansion. I mean, I know there is a lot that Pilgrim's Pride has as part of that and share of it with their outlook in terms of CapEx. But could you remind us a little bit about some of the other projects you're currently talking and working around as it relates to capacity expansion, aside from what Tomazoni just mentioned on Seara. That would be my first question. I have a quick follow-up as well.

Speaker #7: Yeah. Good morning. It's thanks for taking my question. Just following up real quick on the CapEx side. I think you said about 1.4 billion for expansion.

Speaker #7: I mean I know there is a lot that Pilgrim Sprite has part of that and share of it with their outlook in terms of CapEx.

Speaker #7: But could you remind us a little bit about some of the other projects you're currently talking about and working on as it relates to capacity expansion, aside from what Tomazoni just mentioned on Seara?

Speaker #7: That would be my first question. I have a quick follow up as well.

Gilberto Tomazoni: Hi, Ben. Basically the CapEx is the Pilgrim's Pride expansion on the prepared food part, on the rendering facilities, the pork sausage plant in Iowa. The ones that we announced. There's also the Oman project. We also announced that, a plant in Paraguay. Cactus, Texas, also on the beef side. Everything that we've been announcing, and of course, all these CapEx expenditures are phased out throughout the years, and that's the portion for 2026.

Speaker #4: Hi, Ben. So basically, it's the Pilgrim's Pride expansion on the prepared food parts at the rendering facilities. The pork sausage plant in Iowa is the one that we announced. There's also the Oman project, which we also announced, and a plant in Paraguay.

Speaker #4: Cactus, Texas, also on the beef side. So anything that's everything that we've been announcing—and of course, all these capital expenditures are phased out throughout the years.

Speaker #4: And that's the portion for 2026.

Benjamin Theurer: Okay, perfect. Then as you kind of like look for just general capital allocation, I mean, obviously you announced the $1 dividend per share and the very large CapEx program. We're seeing a bit more activity right now as it relates to M&A activity within food companies in general, but particularly between European and North American companies. Just wanted to get your latest as to your willingness or the opportunities you might be seeing on growth through M&A, which obviously has always been part of JBS's DNA to grow. Thank you.

Speaker #7: Okay, perfect. And then as you kind of look at general capital allocation—I mean, obviously, you announced the $1 dividend per share and the very large CapEx program.

Speaker #7: We're seeing a bit more activity right now as it relates to M&A activity within food companies in generally. But particularly between European and North American companies.

Speaker #7: So just wanted to get your latest as to your willingness or the opportunities you might be seeing on growth through M&A which obviously has always been part of JBS's DNA to grow.

Speaker #7: Thank you.

Gilberto Tomazoni: We're always looking at opportunities everywhere in the world. There's nothing that we are looking very keen at the moment. That's one of the reasons that we increased our organic growth because we are not seeing many opportunities on the acquisition front. I think that there's nothing that we could say that we expect right now, anything in terms of M&A. That's why we increased expansion CapEx, and that's why we are returning capital to the shareholders. Given that our net interest expenses continues to be at the $1.1 billion level, we are very comfortable with this capital allocation.

Speaker #4: We always looking at the opportunities throughout everywhere in the world. But there's nothing that we are looking very keen at the moment. And that's for the reasons that we increased our organic growth because we are not seeing many opportunities on the acquisition front.

Speaker #4: So I think that I would say there's nothing that we could say that we expect right now, so anything in terms of M&A. So that's why we increased expansion CapEx.

Speaker #4: And that's why we are returning capital to the shareholders. And given that our net interest expenses continue to be at the 1.1 billion level we are very comfortable with this capital allocation.

Benjamin Theurer: Perfect. Thank you.

Speaker #7: Perfect. Thank you.

Operator: Thank you. Our next question comes from Thiago Bortoluci with Goldman Sachs. Please go ahead, Mr. Bortoluci.

Speaker #4: Thank you. Our next question comes from Tiago Bertolucci with Goldman Sachs. Please go ahead, Mr. Bertolucci.

Thiago Bortoluci: Hey, guys. Good morning, everyone. Thank you very much for the questions, and congrats on the results. I have two follow-ups. The first one, this is on volumes, right? Gilberto Tomazoni, you have been very vocal on the solid momentum for global protein markets. To be honest, when I look over the last few quarters, obviously a lot of debate on the margin cycles, but volumes and top line has been consistently surprising everyone to the upside. I think it might be a continuous source of upside going forward. It's difficult to break out for us your sales component between volume and pricing, but internally, from a volume perspective, would you please share with us what business units, segments, and destinations are the ones that are contributing the most with your growth?

Speaker #8: Hey guys. Good morning everyone. Thank you very much for the questions and congrats on the results. I have two follow ups. The first one this is on volumes right.

Speaker #8: Tomazoni, you have been very vocal on the solid momentum for global protein markets. And to be honest, when I look over the last few quarters, obviously there's been a lot of debate on the margin cycles.

Speaker #8: But volumes and top line has been consistently surprising everyone to the upside. And I think it might be a continual source of upside going forward.

Speaker #8: It's difficult to break out for us. Your sales component between volume and pricing but internally from a volume perspective would you please share with us what business unit segments and destinations are the ones that are contributing the most with your growth?

Thiago Bortoluci: Which regions make you more excited with the opportunities for 2026? Particularly if you could also comment on the opportunities in Africa. I know you announced a few things last year. Just an update here, and then I can follow up with my second question. Thank you.

Speaker #8: And which regions make you more excited with the opportunities for 2026? Particularly, if you could also comment on the opportunities in Africa—I know you announced a few things last year.

Speaker #8: Just an update here. And then I can follow up with my second question. Thank you.

Gilberto Tomazoni: Thiago, thank you for your question. If I understood well, if you talk about Seara or talk about-

Speaker #4: Tiago. Thank you for your question. If I understood well you talk about Seara or talk over about. Overall. Okay. Overall. Okay. Overall we see that the demand when you say all of the market it's not just because we try to simplify.

Thiago Bortoluci: Overall volume.

Gilberto Tomazoni: Overall, we see that the demand when you say all of the markets, it's not just because we try to simplify, but it's the reality. We have a strong demand in Europe. Friboi increased a lot of the sales of red meat in Europe, as Seara increased the volume in Europe. The demand for chicken in Europe maybe is driven by the summer avian influenza in some countries. The demand for beef is because the beef production in Europe decreased. I think it's not just Brazil sell more in Europe and Australia sell more in Europe.

Speaker #4: But it's the reality. We have a strong demand in Europe. Fribourg increased a lot of the sales of red meat in Europe. As Seara increased the volume in Europe.

Speaker #4: And the demand in chicken in Europe mainly is driven by the summer, even influencing some countries. And the demand for beef is because the beef production in Europe decreased.

Speaker #4: And I think it's not just Brazil sell more in Europe. And Australia sell more in Europe. And Australia in the UK now they have a new agreement.

Gilberto Tomazoni: In Europe, in Australia, in the UK now they have a new agreement and this is the demand, we are expecting growing demand for beef in Europe. The other part, we see demand in all of Asia. Take China out of this component of Asia, but all of Asia, the demand is growing for chicken and for beef as well. We see the demand and the markets. This is not new market. We open a lot of new markets, but in traditional market like Japan, like Korea, we increase the volume to the market. I believe this is the trend. It's not the trend because price. It's the trend because the demand increase and the local production decrease.

Speaker #4: And this is the demand is we are expecting grow the demand from beef in Europe. The other part we see demand in all of the Asia that take China out of this component of Asia.

Speaker #4: But all of Asia, the demand is growth for chicken. And for beef as well. We see the demand, and the market is there; it is not a new market.

Speaker #4: We open a lot of new markets. But in traditional markets like Japan, like Korea, we increase the volume from the market. And I believe this is the trend.

Speaker #4: It's not the trend because price is the trend because the demand increased in the local production decreased. Decreased because of the cycle there or because of some disease in the market.

Gilberto Tomazoni: Decrease because of the cycle there or because of some disease in the market. We see the Middle East. Now we are facing a war there, but the flow of the product to the market didn't change. So far, they changed the logistics of vessels there, the logistics of internal logistics. We need to change port, and when you change port, we need to use trucks to deliver the product to the customer. But the flow is still there. The demand is there. Because of this, we are investing in the Middle East. The new factory opened some months ago in Jeddah, and the investment we are announcing in Oman, because the demand is strong. US, there is a strong demand for beef as well.

Speaker #4: We see the Middle East; now we are facing a war there. But the flow of the product to the market didn't change. So far, they have only changed the logistics of vessels there.

Speaker #4: The logistics of internal logistics. We need to change port and we need to change port. We need to use trucks to deliver the product to the to the customer.

Speaker #4: But the flow is still there. The demand is there. Because of this, we are investing in the Middle East. A new factory opened some months ago.

Speaker #4: And then Jeddah, and the investment we have announced in Oman, because the demand is strong. Then, in the US, there is a strong demand for beef as well.

Gilberto Tomazoni: Australia, Brazil sell a lot the trimmings and from US. When you say a lot, more than before. Not saying compared to the production in the market. Sales compared to what previous for that. If you look, we are not seeing that one market is restricted. We see the demand for all of the markets. Even in Brazil, the demand in Brazil for protein is high. Look at how Brazil have grown in terms of the number of heads processed in Brazil. It's amazing. What is this? This is because the global demand for protein. There is a reason we haven't talked before about that. There is a trend.

Speaker #4: Australia Brazil sell a lot of trimmers and from US. When you say a lot more than the production in the market. Sell compare what previous forget.

Speaker #4: If you look, we do not see that one market is this restriction. We see the demand for all of the market. Even in Brazil, the demand in Brazil for protein is high.

Speaker #4: Look at how Brazil has grown in terms of the number of fats processed in Brazil. It's amazing. And what is this?

Speaker #4: This is because of the global demand for protein, because there is a reason. We have talked before about that. There is a trend. It's not a trend.

Gilberto Tomazoni: It's not a trend. It's a structural change in the demand of the market because of regulatory guidelines. In the US, they change the guidelines. They need to add more protein to need to go to 1.1 grams per kilo, per 1.62 grams per kilo. You can imagine how much we need to produce to fulfill this market. There is a lot of the health habits that for young generation, for old generation, there is a new medicine technology, this GLP-1. Combine all of this, the demand is very high. Very high. I think I don't know if I answer your question, Thiago.

Speaker #4: It's a structural change in the demand of the market. Because of regulatory guidelines in the US, they changed the guidelines. They put that they need to add more protein.

Speaker #4: We need to go to 1.1 grams per kilo, per 1.6, two grams per kilo. You can manage how much we need to produce to fulfill this market.

Speaker #4: We see that there is all of the health habits for the young generation. For the old generation, there is a new medicine technology, this GLP-1. And combined with all of this, the demand is very high.

Speaker #4: Very high. I think I don't know if I answer your question Tiago.

Thiago Bortoluci: Perfectly, Tomazoni. This is very helpful. Thank you very much for this. On the second one, still talking about the conflict in the Middle East, obviously this is an ongoing situation, but could you help us framing the impact so far in our freight expenses? By freight, I'm mentioning seaborne freight, but also truck freight in Brazil, and maybe a sensitivity of how this could impact your profitability if sustained going forward or how you plan to pass this along.

Speaker #8: Perfectly, Tomazoni. This is very helpful. Thank you very much for this. On the second one, still talking about the conflict in the Middle East.

Speaker #8: Obviously this is an ongoing situation. But could you help us framing the impact so far in your fright expenses and by fright I mentioning seaborne fright but also truck frights in Brazil.

Speaker #8: And maybe a sensitivity of how this could impact your profitability if sustained going forward, or how you plan to pass this along.

Gilberto Tomazoni: Thiago, I just mentioned before, the flow, the product go to the market didn't change. Didn't change from Brazil, didn't change from Australia, any of the other markets, it didn't change. We keep supplying the market. We have what we saw, the growth, the cost. We have a contract with the agents, the marine agents, and they put extra cost because of the risk to navigate in these regions. This is one, the cost. The second cost is the cost that we need to change the port. Some destination of the product was changed from one port to the other port.

Speaker #4: Tiago. I think it's I just mentioned before. The flow the product go to the market didn't change. Didn't change from Brazil. Didn't change from Australia.

Speaker #4: Any of the other markets didn't change. We keep supplying the market. We have what we saw, the growth, the cost. We have a contract with the marine agents, and they put extra cost because of the risk to navigate in these regions.

Speaker #4: And this is one of the costs. The second cost is the cost that we need to change the port. Some of the destinations of the product, some destinations were changed.

Speaker #4: For one port to the other port. And when we change the destination to the from the different port we need to add the truck transportation because to there is not there is no closer to the customers then we need to add this cost of transportation.

Gilberto Tomazoni: When we change the destination from the different port, we need to have the truck transportation because there is no closer to the customers, then we need to have this cost of transportation. So far, all of this cost was borne by the market. We not see impact in our results.

Speaker #4: But so far this all of this cost was bear by the market. We not see impact in our results.

Thiago Bortoluci: This is also true in Brazil, Gilberto Tomazoni, with diesel prices?

Speaker #8: This is also true in Brazil, Tomazoni, with diesel prices.

Gilberto Tomazoni: No. In Brazil, we see the increase of price of diesel and we see that increase in terms of the cost of freight. I talk about the Middle East, but when you look for Brazil, yes, you are right. Increase the cost of the freight. It will be-

Speaker #4: No. In Brazil we see the increase of price. Of diesel. And we see that increase in terms of the cost of freight. I talk about internal I talk about the Middle East.

Speaker #4: But when you look for Brazil yes you are right. Increase the cost of the freight. And I think if the crude oil keep this price and depends on the development of this war I believe that other costs will be increased.

Thiago Bortoluci: Mm-hmm.

Gilberto Tomazoni: I think if the crude oil keeps this price and depends on what the development of this war is, I believe that other costs will be increased. The cost of packaging and what depends on the oil will be increased as a raw material. I think this will be the impact. I think its fertilizer will be impacted, and could be. I mentioned before when I talk about the cost of the corn, because the fertilizer will be higher, the availability of fertilizer, maybe the use of fertilizer will be reduced, and then the productivity of the crop will be low. I believe it's too early to predict.

Speaker #4: The cost of packaging and what depend of the oil will be increased. As a raw material. I think this will be the impact. I think it's fertilizer will be impacted and could be then dimension before when they talk about the cost of the cost of the corn because the fertilizer will be higher.

Speaker #4: The availability of fertilizer maybe the productivity maybe the use of fertilizer will be reduced and then the productivity of the crop will be low.

Speaker #4: But I believe it's too early to predict. Too early because you don't know. How will be the end of this war. I think this is the I saw this impact in the short term.

Gilberto Tomazoni: too early because you don't know how it will be the end of this war. I think this is the impact I saw in the short term, but it could be back if they end the war. I think it will be all the way back. I think this is the situation that we are in, how we are looking and acting in this situation.

Speaker #4: But could be back if the end the war will be I think will be back. It is we I think this is a situation that we are how we are looking and act in this situation.

Thiago Bortoluci: Makes sense, Gilberto Tomazoni. Thank you very much, and congrats on the year.

Speaker #8: Makes sense Tomazoni. Thank you very much and congrats on the year.

Operator: Thank you. Mr. Andrew Strelzik from BMO Capital Markets would like to ask a question. Please go ahead, Mr. Strelzik.

Speaker #4: Thank you. Mr. Benjamin Mayhew from Bank of Montreal would like to ask a question. Please go ahead, Mr. Mayhew.

Speaker 15: Hi. Can you hear me okay?

Benjamin Mayhew: Hi. Can you hear me okay?

Speaker #6: Hi. Can you hear me okay?

Operator: Yeah. Good morning.

Wesley Batista Filho: Yeah. Good morning.

Speaker 15: Hi. Good morning, guys. A lot has been covered already, but I'd like to ask a high level question to begin. In looking at 2026 versus 2025, just across your global segments, where do you see pockets of improved market fundamentals and where do you see pockets of maybe not so strong fundamentals throughout the year? We'll start there.

Benjamin Mayhew: Hi. Good morning, guys. A lot has been covered already, but I'd like to ask a high level question to begin. In looking at 2026 versus 2025, just across your global segments, where do you see pockets of improved market fundamentals and where do you see pockets of maybe not so strong fundamentals throughout the year? We'll start there.

Speaker #4: Yeah. Good morning.

Speaker #6: Hi, good morning, guys. So a lot has been covered already, but I'd like to ask a high-level question to begin. In looking at 2026 versus 2025, just across your global segments, where do you see pockets of improved market fundamentals, and where do you see pockets of maybe not so strong fundamentals throughout the year?

Speaker #6: So we'll start there.

Gilberto Tomazoni: Oh, Ben, thank you for your question. Ben, I think it's tool of improvement we've seen in all of our business units because we have a methodology to that mapping the gaps is one of, like, the model that we work. All business units need to understand, need to know very well where is the opportunity to improve, then we call mapping the gaps. Right? When you have the budget, we go there and see the gaps, and we forecast in our budget some gap up in each one of the operations. It's not just for the business, but we got the business because we deployed each one of the process and subdivisions of the business.

Speaker #4: Oh. Ben. Thank you for your question. Ben. I think it's rule of improvement we've seen in all of our business units. Because we have a methodology to that mapping the gaps.

Speaker #4: It’s one of the models that we work with. All business units need to understand and need to know very well where is the opportunity to improve.

Speaker #4: Then we call mapping the gaps. And when you look when you have the budget we go there and see the gaps and we forecast in our budget some gap up in the each one of the operation.

Speaker #4: And it's not just from the business but we got the business because we deployed each one of the process and subdivisions of the business.

Gilberto Tomazoni: That means if you look for it's a huge opportunity we have yet because that new technology, new way to do the things, we are closing the gap, we open a bigger gap, and this is the way that we see or get the operational excellence. I think this is the mentality and the mindset for all of the business. If you go to structural, we see that Brazil is one of those as a huge opportunity for growth in terms of meat. Beef in Brazil, I think, is if you compare Brazil in the US, Brazil has more than double of the herd than the US. More than double. We produce just this year or last year, Brazil produced a little bit more meat than the US.

Speaker #4: That means, when you look for—if you look for—it’s a huge opportunity we have yet, because that new technology, new way to do the things, we are close the gap, we open a bigger gap, and this is the way that we are see or get the operational excellence.

Speaker #4: I think this is the mentality and the mindset for all of the business. But if you go to a structural, we see that Brazil is one that has a huge opportunity for growth in terms of meat.

Speaker #4: Beef in Brazil I think is if you compare Brazil Brazil in US Brazil has more than double of the earth than US. More than double.

Speaker #4: And we produce just this year or last year Brazil produced a little bit more meat than US. Means that if we are able to get the same productivity than US or get double the production in Brazil of meat then we see Brazil in terms of red meat huge opportunity in the future for growth.

Gilberto Tomazoni: means that if we are able to get the same productivity as the US, you can double the production in Brazil of meat. We see Brazil in terms of red meat, huge opportunity in the future for growth. Oh, it's not for growth. All of the protein produced in Brazil is very competitive because we are grain competitive. We import the cost of the grain. We are very competitive. We have a good quality management, and I think it's Brazil is one. We see good opportunity in the US. Chicken in the US performs so well, and we see that demand in the US for chicken growth. Before the US export a lot of red meat, leg quarters.

Speaker #4: Oh. But it's not for growth. All of the protein the producing Brazil is very competitive because we are grain competitive. In terms of the cost of the grain we are very competitive.

Speaker #4: We have good quality management and I think it's Brazil is one. We see US good opportunity chicken US performs so well and we see that demand US for chickens grow before US export a lot of red meat like quarters.

Gilberto Tomazoni: I think it's a huge chunk of the volume for red meat is stay in the market because they start to appreciate the product made by red meats by red meat from chicken, say leg meats. This is, I think is in US is it's an opportunity for growth, for chicken, for pork demand. In US we have. If you look for the result of our pork business, they are very consistent results for long period of time, a well-managed business. We see that we can grow in pork business because US is very competitive to produce chicken and pork. Look, it's difficult for me because we I'm booming in all of the market that we are present.

Speaker #4: Now I think it's huge junk of the volume for red meat is stay in the market because they start to appreciate the product made by red meat by red meat from chicken.

Speaker #4: Say leg meats. This is I think is in US is an opportunity. For growth for chicken for pork demand in US we have if you look for the result of our pork business they are a very consistent result for long period of time.

Speaker #4: Well managed business. And we see that we can grow in pork business because US is very competitive to produce chicken and pork. So look it's difficult for me because I'm booming in all of the market that we are present.

Gilberto Tomazoni: Australia, we see we are very excited with the pork business there. We are delivering great result there. The Australia import. If Australia now import pork meat, but Australia export grain. When you export grain, the price of grain is international price. That does not make sense that we export grain, import meat. You can produce meat there. We are investing our pork business, build farms and improving the operation, the productivity of the operation. We are so excited with the opportunity for Australia. Our salmon business, I've announced an investment to improve more than 50% our capacity of salmon in Tasmania. Look, we see Europe. Europe, I think is opportunity for growing chicken, and mainly in chicken and value-added.

Speaker #4: Australia we see we are very excited with the pork business there. We are delivering a great result there. Australia import if Australia now import pork meat.

Speaker #4: But Australia export grain. When you export grain the price of grain is international price. There is not make sense that we export grain and import meat.

Speaker #4: You can produce meat there. And we are investing in our pork business, building farms, and improving the productivity of the operation. Then we are so excited with the opportunity for Australia.

Speaker #4: And our salvage business we are have announced an investment to improve more than 50% our capacity of salmon in Tasmania. So we see Europe Europe I think is an opportunity for growing chicken mainly in chicken and value added.

Gilberto Tomazoni: Look, we are excited because we are in a segment, in a sector that is growing. It's a protein. We have a global platform that we can easily meet this demand. I think it is. We are in a good situation, an advantage to take the opportunity and transform this opportunity result to the company. I think it is. I don't know if I answered your question, Ben.

Speaker #4: So, look, we are excited because we are in a segment, in a sector, that is growing. It's a protein. And we have a global platform that we can easily meet these demands.

Speaker #4: I think it's we had a good situation and take the opportunity in transforming this opportunity result to the company. And I think it is I don't know if I answered your question Ben.

Speaker 15: Yeah, you did, and I really appreciate all the detail. That's very helpful context. My second and last question would just be around the beef cycles. You know, just wondering if you're seeing a little bit more progress on US heifer retention. So wondering about that. Also curious about, you know, your thoughts on the durability of the Brazil cycle and then, of course, the Australian cycle. If you could just kind of summarize that quickly, that would be amazing. Thank you.

Benjamin Mayhew: Yeah, you did, and I really appreciate all the detail. That's very helpful context. My second and last question would just be around the beef cycles. You know, just wondering if you're seeing a little bit more progress on US heifer retention. So wondering about that. Also curious about, you know, your thoughts on the durability of the Brazil cycle and then, of course, the Australian cycle. If you could just kind of summarize that quickly, that would be amazing. Thank you.

Speaker #5: Yeah you did. And I really appreciate all the detail. That's very helpful context. So my second and last question would just be around the beef cycles.

Speaker #5: And just wondering if you're seeing a little bit more progress on US heifer retention? So wondering about that. Also curious about your thoughts on the durability of the Brazil cycle.

Speaker #5: And then, of course, the Australian cycle. So if you could just kind of summarize that quickly, that would be amazing. Thank you.

Gilberto Tomazoni: Thank you, Ben. Yeah, we are seeing the herd rebuild more actively in Canada. We're seeing that in the dairy business as well in the US, which also obviously impacts the overall supply. When we look at the USDA data, it shows that it's, I think we are retaining heifers, but it's relatively slow, slower than we expected. But I think it's all the economics are there. Everything should be there for us to be doing that. Actually, I have an information that's pretty interesting, is the beef cow slaughter. You know, in 2025, full year, we processed 2.3 million head. In 2022 was 3.9 million head.

Wesley Batista Filho: Thank you, Ben. Yeah, we are seeing the herd rebuild more actively in Canada. We're seeing that in the dairy business as well in the US, which also obviously impacts the overall supply. When we look at the USDA data, it shows that it's, I think we are retaining heifers, but it's relatively slow, slower than we expected. But I think it's all the economics are there. Everything should be there for us to be doing that. Actually, I have an information that's pretty interesting, is the beef cow slaughter. You know, in 2025, full year, we processed 2.3 million head. In 2022 was 3.9 million head.

Speaker #4: Thank you Ben. So yeah we are seeing the herd rebuild more actively in Canada. We're seeing that in the dairy business as well in the US.

Speaker #4: Which also obviously impacts the overall supply. When you look at the USDA data it shows that I think we are retaining heifers but it's relatively slower than we expected.

Speaker #4: But I think all the economics are there. Everything should be there for us to be doing that. Actually, I have some information that's pretty interesting. The beef cow kills—beef cows slaughter—in 2025 full year, we processed 2.3 million head.

Speaker #4: In 2022 was 3.9 million head. So we're almost half of what the beef cow slaughter was in 2022. I think those things that information is important and it shows that if it wasn't for to keep more females for breeding we wouldn't see such a sharp decrease in it's almost half of what it was in 2022.

Gilberto Tomazoni: We're almost half of what the beef cow slaughter was in 2022. I think those things that information is important, and it shows that, you know, if it wasn't for, you know, to keep more females for breeding, we wouldn't see such a sharp decrease in, you know, it's almost half of what it was in 2022, not too long ago. I think that there is some information that kind of makes us, you know, more optimistic, but obviously it's lower than we would wish. Then related to Australia, we see we're in the middle of the cycle in Australia. And back to Brazil.

Wesley Batista Filho: We're almost half of what the beef cow slaughter was in 2022. I think those things that information is important, and it shows that, you know, if it wasn't for, you know, to keep more females for breeding, we wouldn't see such a sharp decrease in, you know, it's almost half of what it was in 2022, not too long ago. I think that there is some information that kind of makes us, you know, more optimistic, but obviously it's lower than we would wish.

Speaker #4: Not too long ago. So I think that there is some information that kind of makes us more optimistic but obviously it's lower than we would wish.

Gilberto Tomazoni: Then related to Australia, we see we're in the middle of the cycle in Australia. And back to Brazil.

Speaker #5: Ben related to Australia we see we are in the middle of the cycle in Australia. And back to Brazil. Brazil we see that the reduction of production in terms of the number of cows but the other side we have a different force.

Gilberto Tomazoni: Brazil, we see that the reduction of production in terms of the number of cows. But the other side, you have a different force. The Brazilian, if you look at Brazilian in comparison to US, or compared to Brazilian, you don't need to compare to US. You can compare to the high level productivity in Brazil producers and the average of Brazil. The average of Brazil, they bring to harvest the beef at four years age. But the good producer or the modern farmers, they take two years to get the product finished, to get the cattle finished. Means that at the same time we have a reduction in the age of the cattle.

Speaker #5: The Brazilian—if you look at Brazil and compare it to the US, or compare it to Brazil, you don’t need to compare to the US. You can compare to the high-level productivity in Brazil producers, and the average of Brazil.

Speaker #5: The average of Brazil the bring to harvest the beef at a four years age but the good producer or the modern farmers they live two years to get the product finished to get the cattle finished.

Speaker #5: It means that at the same time, we have a reduction in the age of the cows, and this, combined with a significant increase in feedlots in Brazil—because before, feedlots in Brazil were not well developed.

Gilberto Tomazoni: This combined with increase a lot of feedlot in Brazil. Before feedlot in Brazil was not well developed. Now you can see a lot of feedlots in Brazil. In the other part, we have an improvement in genetics, improved nutrition. The Brazilian ethanol, corn ethanol industry now they deliver a good by-product from the ethanol that is DDGS. It supports a lot the growth of improvements in feed. We see that. I think if Brazil will be able to manage this situation and postpone the cycle, the cattle cycle, that is normal cattle cycle.

Speaker #5: Now you can see a lot of feedlots in Brazil. And the other part we have an improvement in genetic improvement nutrition. The Brazilian ethanol corn ethanol industry now they deliver a good byproduct from the ethanol that is DDG.

Speaker #5: It is support a lot the grow the grow of improvements in feed. We see that we are I think it's Brazil will be able to manage this situation and postpone the cycle the cattle cycle that is normal cattle cycle.

Speaker 15: Got it. Thanks so much, guys.

Benjamin Mayhew: Got it. Thanks so much, guys.

Speaker #5: Got it. Thanks so much, guys.

Speaker 16: Our next question comes from Heather Jones with Heather Jones Research. You may now go ahead, Mrs. Jones. If you're trying to speak, you might be on mute there, Mrs. Jones. Okay. For the moment, we'll move on to the next question on the list, which is Leonardo Alencar from XP Investimentos. You may go ahead, Mr. Alencar.

Operator: Our next question comes from Heather Jones with Heather Jones Research. You may now go ahead, Mrs. Jones. If you're trying to speak, you might be on mute there, Mrs. Jones. Okay. For the moment, we'll move on to the next question on the list, which is Leonardo Alencar from XP Investimentos. You may go ahead, Mr. Alencar.

Speaker #4: Our next question comes from Heather Jones with Heather Jones. You may now go ahead Mrs. Jones. If you're trying to speak you might be on mute there Mrs. Jones.

Speaker #4: For the moment we'll move on to the next question on the list which is Leonardo Alansar from XP Investments. You may go ahead Mr Alansar.

Gilberto Tomazoni: Hi, Gilberto Tomazoni.

Leonardo Alencar: Hi, Gilberto Tomazoni.

Speaker 16: Thank you for taking my question. I wanted to go back to the US beef discussion. I understand we've mentioned many points on the supply side. I wanted to focus probably more on the demand side. If we can get first a view on the resilience of beef prices. We've been seeing some amazing beef prices in the beginning or even before the spring season. Just to understand if you think this is. It's feasible or even if it's possible for us to expect higher price throughout the next few months. There was an interesting change in Choice and Select spread. I don't know if there's any signal on that point, if you could provide us with some more information.

Leonardo Alencar: Thank you for taking my question. I wanted to go back to the US beef discussion. I understand we've mentioned many points on the supply side. I wanted to focus probably more on the demand side. If we can get first a view on the resilience of beef prices. We've been seeing some amazing beef prices in the beginning or even before the spring season. Just to understand if you think this is. It's feasible or even if it's possible for us to expect higher price throughout the next few months. There was an interesting change in Choice and Select spread. I don't know if there's any signal on that point, if you could provide us with some more information.

Speaker #6: Thank you for taking my question. I wanted to go back to the US beef discussion. I understand we mentioned many points on the supply side.

Speaker #6: I wanted to focus probably more on the demand side. So if we can get first a view on the resilience of beef prices—we've been seeing some amazing beef prices in the beginning, or even before the spring season.

Speaker #6: So just to understand if you think this is feasible or even if it's possible for us to expect higher price throughout the next few months.

Speaker #6: There was an interesting change in choice and select spread. I don't know if there's any signal on that point if you could provide us with more information.

Speaker 16: This discussion on the Product of USA label, I understand it's really new, but if you have any early views on that would be interesting as well. On the second point, maybe more like an exercise here. I understand that we've been discussing value-added products and processed goods, and that US is the main focus for that. You already have a lot of revenue on that channel. If we split that from the the commodity business in US, would you say the performance for 2030 even from the end of 2025, but maybe for 2026 may be better than the commodity business, if it is possible to do that, the exercise. That's it.

Leonardo Alencar: This discussion on the Product of USA label, I understand it's really new, but if you have any early views on that would be interesting as well. On the second point, maybe more like an exercise here. I understand that we've been discussing value-added products and processed goods, and that US is the main focus for that. You already have a lot of revenue on that channel. If we split that from the the commodity business in US, would you say the performance for 2030 even from the end of 2025, but maybe for 2026 may be better than the commodity business, if it is possible to do that, the exercise. That's it.

Speaker #6: And this discussion on the product of USA label I understand it's really new but if you have any early views on that would be interesting as well.

Speaker #6: And then the second point maybe more like an exercise here. I understand that we've been discussing value-added products and processed goods and that US is the main focus for that.

Speaker #6: But you already have a lot of revenue on that channel. If we split that from the commodity business in US would you say the performance for 2020 even for the end of 2025 but even for 2026 may be better than the commodity business?

Speaker #6: Is it possible to do that exercise? Let's see.

Wesley Batista Filho: Sorry, I was on mute. Good morning, Leonardo. Demand remains pretty strong for beef. You know, obviously supply is pretty short, but seems like beef continues to be very resilient. Seems like ground beef is especially ground beef, you know, we've always measured ground beef versus chicken breast versus pork loins, and it seems like, you know, the demand for beef in general just you know. There is obviously a little bit of a substitution with other proteins, but the demand for beef stays still remains and remains pretty strong. We see that going forward.

Speaker #7: Sorry I was on mute. Good morning Leonardo. So demand is it remains pretty strong for beef. Obviously supply is pretty short. But seems like beef continues to be very resilient.

Speaker #7: Seems like ground beef is especially ground beef we've always measured ground beef versus chicken breast versus pork loins and it seems like the demand for beef in general just there is obviously there is a little bit of a substitution with other proteins but the demand for beef stays still remains and remains pretty strong.

Speaker #7: So we see that going forward. And all this labor requirements and all of that it's something that we're always whenever something changes we discuss with our retailers and see what our customers and see what are the impacts and cost on that.

Wesley Batista Filho: This, all this, these labor requirements and all of that, you know, it's something that we're always, you know, whenever something changes, we discuss with our retailers and our customers and see what the impacts and costs on that are. But it's not something that I'm super concerned right now.

Speaker #7: But it's not something that I'm super concerned right now.

Speaker 16: Okay. The value-added products?

Leonardo Alencar: Okay. The value-added products?

Speaker #6: Okay. In the value-added products?

Wesley Batista Filho: Sorry, that value-added question was about which business unit? Sorry, I missed that.

Speaker #7: Sorry. That value-added question was about which business unit? Sorry I missed that.

Speaker 16: Exactly not related to a business unit. If you could split or remove or suggest the value-added products and remove from the commodity business. Would you say 2026 expected to be better or not for that part of the business?

Leonardo Alencar: Exactly not related to a business unit. If you could split or remove or suggest the value-added products and remove from the commodity business. Would you say 2026 expected to be better or not for that part of the business?

Speaker #6: Exactly, not related to a business unit. If you could split or remove, or suggest value-added products and remove them from the commodity business, would you say 2026 is expected to be better or not for that part of the business?

Gilberto Tomazoni: Very nice. Look, our focus is to increase value-added in brand. It is the focus that investment, if you look for an investment we have done in the past, we prioritize the value-added products. Because if we take the advantage of verticalization of the product, and the second one is this higher margin is more stable market. That value add is one of our priorities.

Speaker #7: Look, our focus is to increase value-added in brand. The focus—that the investment, if you look for the investment we have done in the past, we prioritize the value-added product.

Speaker #7: And because we take advantage of verticalization of the product, and the second one is higher margin, it is a more stable market. That value-added is one of our priorities.

Speaker 16: Okay. Just one more follow-up here. On this split-up bill that was being discussed in the US government, I understand it's more noise than anything, but any comments here?

Leonardo Alencar: Okay. Just one more follow-up here. On this split-up bill that was being discussed in the US government, I understand it's more noise than anything, but any comments here?

Speaker #6: Okay. And just one more follow-up here. On this split-up view that was being discussed in the US government, I understand it's more noise than anything, but any comments here?

Wesley Batista Filho: Seems like it doesn't have a lot of support. Right now, it's not something that we're concerned about, Leonardo.

Speaker #7: It seems like it doesn't have a lot of support in, so right now it's not something that we're concerned about, Leonardo.

Speaker 16: Okay. Okay. Thank you.

Leonardo Alencar: Okay. Okay. Thank you.

Speaker #6: Okay. Okay. Thank you all.

Operator: Thank you. We have, Mrs. Heather Jones back online. If you would like to go ahead with your question, Mrs. Jones.

Speaker #4: Thank you. And we have Mrs. Heather Jones back on the line. If you would like to go ahead with your question, Mrs. Jones.

Speaker 17: Are you able to hear me now?

Heather Jones: Are you able to hear me now?

Speaker #8: Are you able to hear me now?

Wesley Batista Filho: Now, yes. Good morning.

Speaker #9: Now yes. Good morning.

Speaker 17: Hello?

Heather Jones: Hello?

Speaker #8: Hello?

Operator: Yes, we hear you.

Guilherme Cavalcanti: Yes, we hear you.

Wesley Batista Filho: We can hear you.

Speaker #9: Yes we are hearing you.

Speaker #7: We can hear you.

Operator: seems we have some connection issues on Heather Jones' side, so we'll continue for now with next question from Guilherme Palhares with Santander. You may go ahead, Mr. Palhares.

Speaker #4: It seems we have some connection issues on Mrs. Jones's side, so we'll continue for now with the next question from Guilherme Cavalcanti with Santander. You may go ahead, Mrs. S.

Speaker #4: Cavalcanti.

Speaker 18: Good morning, everyone. Thank you for taking my questions. Over the last couple of years, one of the main points here of the investment thesis of JBS has been a bit of the geographic diversification, right? You do report each of the businesses individually in terms of Australia, Brazil, the US. I just wonder if you could share a bit, I think US is a good indication there. In terms of the supply to the market, how much of meat, beef meat in the US, is being sold through JBS? Do you know a bit, how much do you are selling today that it's coming from Brazil and Australia? Just to give a, you know, the point here is a bit of food security, right?

Guilherme Palhares: Good morning, everyone. Thank you for taking my questions. Over the last couple of years, one of the main points here of the investment thesis of JBS has been a bit of the geographic diversification, right? You do report each of the businesses individually in terms of Australia, Brazil, the US. I just wonder if you could share a bit, I think US is a good indication there. In terms of the supply to the market, how much of meat, beef meat in the US, is being sold through JBS? Do you know a bit, how much do you are selling today that it's coming from Brazil and Australia? Just to give a, you know, the point here is a bit of food security, right?

Speaker #10: Good morning, everyone. Thank you for taking my questions. Over the last couple of years, one of the main points here of the investment thesis of JBS has been a bit of the geographic diversification, right?

Speaker #10: And you do report each of the businesses individually, in terms of Australia, Brazil, the US. I just wonder if you could share a bit—what is, I think, the US is a good indication there.

Speaker #10: In terms of the supply to the market, how much of beef meat in the US is being sold through JBS? Do you know, a bit, how much you're selling today that's coming from Brazil and Australia?

Speaker #10: So, just to give the point here, it's a bit about food security, right? So having this geographic diversification, how much can you maintain supply even when the cycle conditions are not there?

Speaker 18: Having this geographic diversification, how much you can maintain supply even when the cycle conditions are not there. If you could give us some color there, I think it would be appreciated. The second question here, Gilberto Tomazoni. Over the last two years, you guys entered in a new protein, which is table eggs. Of course, you still have a minority stake on the investment there. But I just want to hear a bit your thoughts going forward with this year behind you. What is your impression there, and how big is the opportunity there? Thank you.

Guilherme Palhares: Having this geographic diversification, how much you can maintain supply even when the cycle conditions are not there. If you could give us some color there, I think it would be appreciated. The second question here, Gilberto Tomazoni. Over the last two years, you guys entered in a new protein, which is table eggs. Of course, you still have a minority stake on the investment there. But I just want to hear a bit your thoughts going forward with this year behind you. What is your impression there, and how big is the opportunity there? Thank you.

Speaker #10: So if you could give us some color there I think it would be appreciated. And the second question here Tomazoni over the last two years you guys entered in a new protein which is table eggs.

Speaker #10: Of course, you still have a minority stake on the investment there. But I just want to hear a bit your thoughts going forward—with this year behind you, what is your impression there, and how big is the opportunity there?

Speaker #10: Thank you.

Wesley Batista Filho: You know, sure, it's very relevant to have access to import meat from Australia, from Brazil, especially in periods of time when there is a shortage of beef in the US. That does help, and I mean, obviously the volumes that Brazil and Australia produce are significant, so it's. There isn't a supply problem when it comes to that. Having said that, the US is a very competitive place in the world, probably one of the most competitive places in the world. The American rancher is among the most capable in the world to produce beef and high quality beef, you know.

Speaker #7: You hear me? Sure. It's very relevant to have access to import meat from Australia and from Brazil, especially in periods of time when there is a shortage of beef in the US.

Speaker #7: So that does help and it's I mean and obviously the volumes that Brazil and Australia produce are significant. So it's there is not there isn't a supply problem when it comes to that.

Speaker #7: Having said that, the US is a very, very, very, very competitive place in the world—probably one of the most competitive places in the world.

Speaker #7: The American rancher is one of the most—are among the most capable in the world to produce beef and high-quality beef. And so, obviously, the shortages is a situational thing right now.

Wesley Batista Filho: You know, obviously this shortage is a situational thing right now. The US is a country that doesn't need to import. In the long run, it doesn't need to depend on import. It doesn't need to have imports to be able to supply its own demand. It should be able to, in the long run, be able to have its domestic production to supply its domestic market and actually be an important exporter of beef like it's always been. Obviously, in the short term, we have the situation that we're importing a little bit more beef than usual. It's useful to have that when there is a shortage 'cause the demand's still there.

Speaker #7: But the US is a country that doesn't need to import in the long run. It doesn't need to depend on imports. It doesn't need to have imports to be able to supply its own demand.

Speaker #7: It should be able to in the long run to be able to have its to for its domestic production to supply its domestic market and actually be an important exporter of beef like it's always been.

Speaker #7: Obviously, in the short term, we have the situation that we're importing a little bit more beef than usual. But it's useful to have that when there is a shortage, because the demand's still there.

Wesley Batista Filho: The US is a very productive place and doesn't need for beef. In the long run, it shouldn't depend on imports.

Speaker #7: But the US is a very, very productive place and doesn't need—for beef, and doesn't need, doesn't—in the long run, shouldn't depend on imports.

Gilberto Tomazoni: Guilherme, related to table eggs, we enter in this segment because it's the more affordable protein in the market. We see that the affordability of the protein is one of the more affordable protein in the market. Before to enter, we studied this category, and we are excited. The first impression, the first movement we have done is to buy a company in the US, and we are building farms in Brazil. We are excited with the business. This is one of the business we want to grow.

Speaker #11: And Guilherme, related to table eggs, we entered in the segment because we see that, in terms of affordability, eggs are one of the more affordable proteins in the market.

Speaker #11: And we, before to enter, we started this category and we are excited. The first impression, the first movement we have done is to buy a company in the US, and we are building farms in Brazil.

Speaker #11: We are excited with the business. This is one of the businesses we want to grow.

Speaker 18: Okay, Tomazoni. Just one follow-up there. You guys are also entering in the US, right? What is also out there that you want to do on table eggs that you think it is a relevant market that you can play and make a difference?

Guilherme Palhares: Okay, Tomazoni. Just one follow-up there. You guys are also entering in the US, right? What is also out there that you want to do on table eggs that you think it is a relevant market that you can play and make a difference?

Speaker #10: Okay, Tomazoni, and just one follow-up there. You guys are also entering in the US, right? So what is also out there that you want to do on table eggs that you think is a relevant market that you can play in and make a difference?

Wesley Batista Filho: Look, we just buy these farms in US and we are without, how to say that? The population of the chicks. Now we are populate our farms, and we are excited with this. The thing is this. Our strategy with both with Mantiqueira, because Mantiqueira has the know-how, and this accelerate all of our learnings in the market.

Gilberto Tomazoni: Look, we just buy these farms in US and we are without, how to say that? The population of the chicks. Now we are populate our farms, and we are excited with this. The thing is this. Our strategy with both with Mantiqueira, because Mantiqueira has the know-how, and this accelerate all of our learnings in the market.

Speaker #7: Look, we just bought these farms in the US, and we are with doubt how to say that the population of the chick—now we are populating our farms and we are excited with this.

Speaker #7: The thing is this: we are going with the strategy with Mantequera because Mantequera has the know-how, and this accelerates all of our learnings in the market.

Speaker 18: Thank you.

Guilherme Palhares: Thank you.

Speaker #10: Thank you.

Operator: Our next question comes from Pooran Sharma. You may go ahead with Stephens. You may go ahead, Mr. Sharma.

Speaker #4: Our next question comes from Burhan Sharma. You may go ahead with Stevens. You may go ahead Mrs. Sharma.

Speaker 17: Thanks. Can you hear me okay?

Pooran Sharma: Thanks. Can you hear me okay?

Speaker #11: Thanks. Can you hear me okay?

Wesley Batista Filho: Yeah. Good morning.

Speaker #7: Yeah. Good morning.

Speaker 17: Good morning. Appreciate the question here. A lot of good content covered. Maybe I could just focus on the first question, maybe just on your US pork business. We've been hearing from US hog producers that they expect disease impacts to be the same, if not worse than last year. I was just wondering if you can kinda share what you've been hearing regarding hog disease pressure in the US, and if you would expect that to weigh in on margins in FY 2026.

Pooran Sharma: Good morning. Appreciate the question here. A lot of good content covered. Maybe I could just focus on the first question, maybe just on your US pork business. We've been hearing from US hog producers that they expect disease impacts to be the same, if not worse than last year. I was just wondering if you can kinda share what you've been hearing regarding hog disease pressure in the US, and if you would expect that to weigh in on margins in FY 2026.

Speaker #11: Good morning. I appreciate the question here, and a lot of good content was covered, so maybe I could just focus on the first question—maybe just on your US pork business.

Speaker #11: We've been hearing from US hog producers that they expect disease impacts to be the same, if not worse, than last year. I was just wondering if you can kind of share what you've been hearing regarding hog disease pressure in the US, and if you would expect that to weigh in on margins.

Speaker #11: In FY26.

Wesley Batista Filho: Yeah. It could be. The margin impact is not necessarily that it's. It depends on how and when it does impact. It doesn't necessarily mean that it's actually a negative impact. It could actually have a short term. Obviously, we're not expecting disease and we don't want disease, and we do everything we can not to have them. But in the short term, you actually could have a higher, you know, given a shorter supply, you could actually have a better margin if that happens.

Speaker #7: Yeah, it could be. And the margin impact—it's not necessarily that it is; it depends on how and when it does impact. It doesn't necessarily mean that it's actually a negative impact.

Speaker #7: It could, actually—it could have a short-term... Obviously, we're not expecting disease, and we don't want disease, and we do everything we can not to have them.

Speaker #7: But in the short term, you actually could have, given a shorter supply, you could actually have a better margin if that happens.

Speaker 17: Okay. Appreciate the color there. My follow-up, maybe just wanted to further on some of the comments you made about the listing on the NYSE. You know, you mentioned the stock has seen some liquidity and valuation benefits, but that you're still expecting to get more. You know, in the past you all have talked about, I think index inclusions and the potential to get into some of those and the timing to get into some of those. I think as we're looking in FY 2026, was just wondering if you could maybe give us an update on what's out there in terms of inclusion on some of these passive indices.

Pooran Sharma: Okay. Appreciate the color there. My follow-up, maybe just wanted to further on some of the comments you made about the listing on the NYSE. You know, you mentioned the stock has seen some liquidity and valuation benefits, but that you're still expecting to get more. You know, in the past you all have talked about, I think index inclusions and the potential to get into some of those and the timing to get into some of those. I think as we're looking in FY 2026, was just wondering if you could maybe give us an update on what's out there in terms of inclusion on some of these passive indices.

Speaker #4: Okay. Appreciate the color there. And my follow-up maybe just wanted to further on some of the comments you made about the listing on the NYSE you mentioned stock has seen some liquidity and valuation benefits but that you're still expecting to get more.

Speaker #4: And in the past, you all have talked about, I think, index inclusions and the potential to get into some of those, and the timing to get into some of those.

Speaker #4: So I think, as we're looking into FY26, I was just wondering if you could maybe give us an update on what's out there in terms of inclusion on some of these passive indices.

Wesley Batista Filho: Okay. On a multiple side, if you look at our enterprise value versus forward-looking, we are trading higher than we used to trade before the listing. There was a multiple expansion already, but we still traded at a discount.

Guilherme Cavalcanti: Okay. On a multiple side, if you look at our enterprise value versus forward-looking, we are trading higher than we used to trade before the listing. There was a multiple expansion already, but we still traded at a discount.

Speaker #7: Okay, so on the multiple side, if you look at our enterprise value bid forward-looking, we are trading higher than we used to trade before the listing.

Speaker #7: So, there was a multiple expansion already. But we still traded at a discount to peers. One of the reasons is also the index inclusion.

Guilherme Cavalcanti: To our peers. One of the reasons is also the index inclusion. There was research that was sent yesterday from Stephens saying that according to what we released on our financial statements in terms of information of revenues and assets breakdown, we should be included in the Russell, which is next June. It could bring around 14 million share demand from passive funds. Again, it's out of our control. We cannot guarantee that, but that's what is in the short term. On the longer term, at some point, most likely beginning next year, we'll start to file 10-K to 10-Qs instead of 6-K in order to be eligible to the S&P family.

Speaker #7: There was a research that was sent last yesterday from Stevens saying that, according to what we released on our financial statements in terms of information of revenues and assets breakdown, we should be included in the Russell, which is next June, and it could bring around 14 million shares demand from passive funds.

Speaker #7: But it's out of our control. We cannot guarantee that. But that's what is in the short term. On the longer term, at some point, most likely beginning next year, we'll start to finally make filings of 10-Ks and 10-Qs instead of 6-Ks in order to be eligible to the S&P family.

Guilherme Cavalcanti: I think 2027. I think this year Russell is the plan. Next year, the plan is to be on the S&P family, first on the S&P 400. Once we reach it, $22.7 billion market cap, that's the threshold for the S&P 500. Although, again, it's not in our control. It's their committee decision for share inclusion. Also worth mentioning that our average daily trading volume is three times higher than what it used to be before the listing. The Brazilian investors fell to 10% of our free float. The US investors today, it's already 70% of our free float.

Speaker #7: So then I think 2027 so I think this year Russell is the plan. Next year the plan is beyond the S&P family. First on the S&P 400.

Speaker #7: And once we reach it to 22.7 billion market cap that's the threshold for the S&P 500. Although again it's not on our control. It's their committee decision for shares inclusion.

Speaker #7: Also one thing mentioned that our average daily trading volume is three times higher what it used to be before the listing. And the Brazilian investors fell to 10% of our free float and the US investor today it's already 70% of our free float.

Thiago Bortoluci: Great. Thank you for the color.

Pooran Sharma: Great. Thank you for the color.

Speaker #4: Great, thank you for the color. And our next question comes from Ricardo Biaci from Safra. You may go ahead, Mr. Biaci.

Operator: Our next question comes from Ricardo Boiati from Safra. You may go ahead, Mr. Boiati.

Speaker 19: Hi. Good morning, everyone. Thanks for the opportunity here. My first question goes to Wesley. I wanted to circle back to the US beef business. You, in fact, already answered part of my question here, which related to the competitiveness of the US ranchers, right? We are seeing very favorable conditions, right, for a faster herd rebuilding in the US with the beef prices, the cattle prices. My question here would be exactly when you look from the ranchers' perspectives, right? We see some concerns that labor, even succession plans could be an issue for the ranchers longer term. You expressed a very positive outlook for the US beef industry, which is very, very good.

Ricardo Boiati: Hi. Good morning, everyone. Thanks for the opportunity here. My first question goes to Wesley. I wanted to circle back to the US beef business. You, in fact, already answered part of my question here, which related to the competitiveness of the US ranchers, right? We are seeing very favorable conditions, right, for a faster herd rebuilding in the US with the beef prices, the cattle prices. My question here would be exactly when you look from the ranchers' perspectives, right? We see some concerns that labor, even succession plans could be an issue for the ranchers longer term. You expressed a very positive outlook for the US beef industry, which is very, very good.

Speaker #12: Hi, good morning, everyone. Thanks for the opportunity here. My first question goes to Wesley. I wanted to circle back to the U.S. business. You, in fact, already answered part of my question here, which related to the competitiveness of the U.S. ranchers, right.

Speaker #12: We are seeing very favorable conditions right now for a faster herd rebuilding in the US with the beef prices and the cattle prices. My question here would be, exactly when you look from the ranchers' perspectives, right?

Speaker #12: We see some concerns that labor, even succession plans, could be an issue for the ranchers' longer term. You expressed a very strong positive outlook for the US beef industry, which is very good.

Speaker 19: I would ask you to elaborate a little further on the drivers for the industry, especially from the ranchers' perspective, right? Is there anything that could prevent a more robust business expansion for the ranchers? Anything that could be a risk on the horizon? That would be the first question. The second one, just more broadly, looking at the current market environment, the risk environment, globally. Does this situation here of increased volatility could imply an even more conservative approach when it comes to the balance sheet of the company? It's quite clear that the balance sheet is very strong.

Ricardo Boiati: I would ask you to elaborate a little further on the drivers for the industry, especially from the ranchers' perspective, right? Is there anything that could prevent a more robust business expansion for the ranchers? Anything that could be a risk on the horizon? That would be the first question. The second one, just more broadly, looking at the current market environment, the risk environment, globally. Does this situation here of increased volatility could imply an even more conservative approach when it comes to the balance sheet of the company? It's quite clear that the balance sheet is very strong.

Speaker #12: So I would ask you to elaborate a little further on the drivers for the industry. Especially from the ranchers' perspective right. Is there anything that could prevent a more robust business expansion for the ranchers?

Speaker #12: Anything that could be a risk in the horizon? So that would be the first question. And the second one just more broadly looking at the current market environment the risk environment globally.

Speaker #12: Does this situation here of increased volatility imply an even more conservative approach when it comes to the balance sheet of the company? It's quite clear that the balance sheet is very strong.

Speaker 19: I mean, in terms of leverage, in terms of debt maturity. You already showed this in detail. The very short term, the current environment, does it imply an even greater conservativeness from your side, or nothing relevant so far? Thank you, guys.

Ricardo Boiati: I mean, in terms of leverage, in terms of debt maturity. You already showed this in detail. The very short term, the current environment, does it imply an even greater conservativeness from your side, or nothing relevant so far? Thank you, guys.

Speaker #12: I mean in terms of leverage in terms of debt maturity already showed this in details. But the very short term the current environment does it imply an even greater conservativeness from your side or nothing relevant so far?

Speaker #12: Thank you guys.

Guilherme Cavalcanti: Yeah, there is obviously issues that are all very relevant. Succession is always very relevant, and labor and all that. At the end of the day, I have a pretty simple view of this. It's the US. Obviously, like interest rates are relevant as well when it come to herd rebuild, right? Because you have to carry more working capital and livestock and all of that. At the end of the day, I think it's pretty simple. The US has the nature, has the culture. I mean, nature, I mean like just environment, right? Just the natural resources to have a thriving beef production. It has the culture to do it. It has the infrastructure like no other country.

Wesley Batista Filho: Yeah, there is obviously issues that are all very relevant. Succession is always very relevant, and labor and all that. At the end of the day, I have a pretty simple view of this. It's the US. Obviously, like interest rates are relevant as well when it come to herd rebuild, right? Because you have to carry more working capital and livestock and all of that. At the end of the day, I think it's pretty simple. The US has the nature, has the culture. I mean, nature, I mean like just environment, right? Just the natural resources to have a thriving beef production. It has the culture to do it. It has the infrastructure like no other country.

Speaker #7: Ricardo. So, yeah, there are obviously issues that are all very relevant—succession is always very relevant, and labor and all that. But at the end of the day, I have a pretty simple view of this.

Speaker #7: It's the US, and obviously interest rates are relevant as well when it comes to herd rebuild, right? Because you have to carry more working capital and livestock and all of that.

Speaker #7: But at the end of the day, I think it's pretty simple. The US has the nature, has the culture—I mean, nature, I mean just the environment, right? Just the natural resources—to do it, to have a thriving beef production.

Speaker #7: It has the culture to do it. It has the infrastructure like no other country. So, at the end of the day, we remain very optimistic about it in the medium-long run.

Guilherme Cavalcanti: At the end of the day, we remain very optimistic about it in the medium long run. In terms of balance sheet, I think it's worth mentioning that sometimes you should not look at the net debt absolute value itself, but not even the Net Debt-to-EBITDA. I think it's where I mentioned that the last three years, we increased our net debt by 8%. However, financial expenses stayed the same. Through debt management exercises, we've been able to, despite increases in net debt, keep the same level of interest expenses. Our capacity of debt repayment didn't change. As long as we have this comfortable debt capacity repayment, we're not needing any restrictions in terms of our return to shareholders or our growth.

Wesley Batista Filho: At the end of the day, we remain very optimistic about it in the medium long run.

Guilherme Cavalcanti: In terms of balance sheet, I think it's worth mentioning that sometimes you should not look at the net debt absolute value itself, but not even the Net Debt-to-EBITDA. I think it's where I mentioned that the last three years, we increased our net debt by 8%. However, financial expenses stayed the same. Through debt management exercises, we've been able to, despite increases in net debt, keep the same level of interest expenses. Our capacity of debt repayment didn't change. As long as we have this comfortable debt capacity repayment, we're not needing any restrictions in terms of our return to shareholders or our growth.

Speaker #12: In terms of balance sheet I think it's worth mentioning that sometimes you should not look at the net debt absolute value itself. But not even on the net debt to bid I think it's where I mentioned that the last three years we increased our net debt in 8%.

Speaker #12: However financial expenses stayed the same. So through liability management exercises we've been able to despite increases in net debt to keep the same level of interest expenses.

Speaker #12: So our capacity of debt repayment didn't change. So as long as we have this comfortable debt repayment capacity, we have no— we're not being needed any restrictions in terms of our return to shareholders or our growth, given that we have this comfort.

Gilberto Tomazoni: Given that, we have discovered, and also, as I mentioned before, we don't have significant maturities in the next 5 years. Which gives a lot of comfort that we don't need to go to the market at any interest rates. Our cash position is also. We ended the quarter with $4.8 billion, which is around 1 to 1.5 billion higher than what our minimum cash is, given our cash conversion cycle. Again, we have a lot of cushion that currently we don't need to be restricted in any of our initiatives.

Guilherme Cavalcanti: Given that, we have discovered, and also, as I mentioned before, we don't have significant maturities in the next 5 years. Which gives a lot of comfort that we don't need to go to the market at any interest rates. Our cash position is also. We ended the quarter with $4.8 billion, which is around 1 to 1.5 billion higher than what our minimum cash is, given our cash conversion cycle. Again, we have a lot of cushion that currently we don't need to be restricted in any of our initiatives.

Speaker #12: And also, as I mentioned before, we don't have significant maturities in the next five years. It gives a lot of comfort that we don't need to go to the market at any interest rates.

Speaker #12: Our cash position is also we ended the quarter with a 4.8 billion which is around a 1 to 1 billion 1 billion and a half higher than what is our minimum cash given our cash conversion cycle.

Speaker #12: So again, we have a lot of questions. Currently, we don't need to be restricted in any of our initiatives.

Speaker 19: Okay. Super, super clear, Guilherme and Wesley. Thank you very much.

Ricardo Boiati: Okay. Super, super clear, Guilherme and Wesley. Thank you very much.

Speaker #4: Okay, super clear, Guilherme and Wesley. Thank you very much.

Operator: Our next question comes from Igor Guedes with Genial. You may go ahead, Mr. Guedes.

Speaker #1: Our next question comes from Igor Gagis with GNL. You may go ahead Mrs. Gagis.

Speaker 20: Can you hear me?

Igor Guedes: Can you hear me?

Speaker #13: Can you hear me?

Gilberto Tomazoni: Yeah. Good morning.

Wesley Batista Filho: Yeah. Good morning.

Speaker #7: Yeah good morning.

Speaker 20: Okay. Thank you. Good morning, everyone. Thank you for the opportunity. I would like to talk a little about Seara. Regarding the first part of the question, this quarter we saw a resumption of shipments to China after several months of suspension, due to avian flu last year. I'd like to understand how the resumption went for you guys. The resumption happened at around November, so it didn't cover the entire quarter. For Q1 2026, should we expect an even stronger quarter in terms of volume? Is this recovery gradual, or do we believe the full effect has already been captured in Q4? And the second part of the question, I'd like to understand from the perspective of breaking down the positive impact.

Igor Guedes: Okay. Thank you. Good morning, everyone. Thank you for the opportunity. I would like to talk a little about Seara. Regarding the first part of the question, this quarter we saw a resumption of shipments to China after several months of suspension, due to avian flu last year. I'd like to understand how the resumption went for you guys. The resumption happened at around November, so it didn't cover the entire quarter. For Q1 2026, should we expect an even stronger quarter in terms of volume? Is this recovery gradual, or do we believe the full effect has already been captured in Q4? And the second part of the question, I'd like to understand from the perspective of breaking down the positive impact.

Speaker #13: Okay thank you. Good morning everyone. Thank you for the opportunity. I would like to talk a little about Seara regarding the first part of the question.

Speaker #13: This quarter, we saw a resumption of shipments to China after several months of suspension due to avian flu last year. I'd like to understand how the resumption went for you guys.

Speaker #13: The resumption happened at around November, so it didn't cover the entire quarter. For Q1 '26, should we expect an even stronger quarter in terms of volume?

Speaker #13: Is this recovery gradual or do we believe that do you believe the flu effect has already been captured in for Q? And the second part of the question I'd like to understand from the perspective of breaking down the positive impacts we have volume growth as well as price improvements realized through premiums paid on certain chicken cuts this time for China.

Speaker 20: We have volume growth as well as price improvements, realized through premiums paid on certain chicken cuts destined for China, such as chicken feet. Given the increase in volume, there is also an effect of improved fixed cost dilution. My question is, if you could break it down a bit, what we saw in terms of margin improvements, what influenced it the most? Was it the increase in volume, the price improvement, or the fixed cost dilution? Thank you very much.

Igor Guedes: We have volume growth as well as price improvements, realized through premiums paid on certain chicken cuts destined for China, such as chicken feet. Given the increase in volume, there is also an effect of improved fixed cost dilution. My question is, if you could break it down a bit, what we saw in terms of margin improvements, what influenced it the most? Was it the increase in volume, the price improvement, or the fixed cost dilution? Thank you very much.

Speaker #13: Such as chicken feet. Given the increase in volume, there is also an effect of improved fixed cost dilution. So my question is if you could break it down a bit—what we saw in terms of margin improvements, what influenced the most?

Speaker #13: Was it was it the increase in volume? The pricing improvement or the fixed cost dilution? Thank you very much.

Gilberto Tomazoni: Igor, it's not a simple answer for you. If you talk about the volume to China, when open, this helped a lot in terms of profitability because we have the best market for chicken wings and for chicken feet is China. Feet, we don't produce, we're not meant to market to deliver all of the production. We open the market, they improve volume and improve price. About the wings, they improve the price because the value of the wings in China is higher than the other markets. Means that we got part of the benefit because it was in November, I think October, November.

Speaker #7: Igor it's not as simple answer for you. If you talk about the volume to China when open this helped a lot in terms of profitability because we have the best market for chicken wings and for chicken feet is China.

Speaker #7: Then we increase in terms of we feet we don't produce. We're not market to deliver all of the production. But then when you open the market they improve volume and improve price.

Speaker #7: And about wings, they improved the price because the value of the wings in China is higher than in the other market. It means that we got part of the benefit because it was in November—I think it was October, November.

Gilberto Tomazoni: Now we are got the benefit in this Q1 is all of the benefit. When you talk about what is important, the cost of dilutions of price, of course, the impact of the feed, it's a huge impact in terms of profitability, because these represent 60% of our cost of chicken is goes to feed around 50. This is huge. That is, it's more than to get increased volume to compensate this. It's of course volume compensate, but not able to compensate all of this cost.

Speaker #7: And now we are got the benefit in the in this first quarter all of the benefit. When you talk about where is important the cost of dilutions of price of course the impact of the feet it's a huge impact in terms of profitability.

Speaker #7: Because this represents 60% of our cost of chicken is goes to feet. Around 50 around 50. And this is huge that it's more than to get increase the volume to compensate this is of course volume compensate but not able to compensate all of this cost.

Speaker 20: Okay. Thank you very much.

Igor Guedes: Okay. Thank you very much.

Speaker #13: Okay. Thank you very much.

Operator: Our next question comes from Priya Ohri-Gupta with Barclays. You may go ahead, Mrs. Ohri-Gupta.

Speaker #1: Our next question comes from Priya Aurigupta with Barclays. You may go ahead Mrs. Aurigupta.

Speaker 21: Great. Thank you for taking the question. I hope you can hear me. I know a lot of questions have been asked at this point. I would just like to ask two. First, around just the capital allocation. You've already announced the $1 dividend per share, that's gonna be paid in June. That works out, you know, roughly to what you've been indicating for some time now around the ability to consistently pay about $1 billion to shareholders. Is that sort of how we should think about the dividend for the entirety of the year, or is there room to potentially increase that with a second payment later in the year? Relatedly, how should we think about share repurchases? Just given that you guys did do about $600 million in 2025.

Priya Ohri-Gupta: Great. Thank you for taking the question. I hope you can hear me. I know a lot of questions have been asked at this point. I would just like to ask two. First, around just the capital allocation. You've already announced the $1 dividend per share, that's gonna be paid in June. That works out, you know, roughly to what you've been indicating for some time now around the ability to consistently pay about $1 billion to shareholders. Is that sort of how we should think about the dividend for the entirety of the year, or is there room to potentially increase that with a second payment later in the year? Relatedly, how should we think about share repurchases? Just given that you guys did do about $600 million in 2025.

Speaker #14: Great. Thank you for taking the question. I hope you can hear me. I know a lot of questions have been asked at this point.

Speaker #14: I would just like to ask two. First, around just the capital allocation—you've already announced the $1 dividend per share that's going to be paid in June.

Speaker #14: That works out roughly to what you've been indicating for some time now around the ability to consistently pay about a billion dollars to shareholders.

Speaker #14: Is that sort of how we should think about the dividend for the entirety of the year or is there room to potentially increase that with a second payment later in the year and then relatedly how should we think about share repurchases?

Speaker #14: Just given that you guys did do about 600 million in 25 and then I'll ask my follow-up.

Speaker 21: I'll ask my follow-up.

Priya Ohri-Gupta: I'll ask my follow-up.

Gilberto Tomazoni: Hi, Priya. At this moment, we are sticking to what we will try to do as long as our leverage ratio allows to have the $1 billion per year in dividends. I think this $1 billion is what we plan to pay this year. Depends on how much excess cash or cash flow generation, then we can reevaluate.

Guilherme Cavalcanti: Hi, Priya. At this moment, we are sticking to what we will try to do as long as our leverage ratio allows to have the $1 billion per year in dividends. I think this $1 billion is what we plan to pay this year. Depends on how much excess cash or cash flow generation, then we can reevaluate.

Speaker #7: Hi Priya. So at this moment we are sticking to what we will try to do as long as our leverage ratio allows to have the $1 billion per year in dividends.

Speaker #7: So, I think this $1 billion is what we plan to pay this year. And then, depending on how much excess cash or cash flow generation we have, we can reevaluate a share repurchase again or not.

Guilherme Cavalcanti: A share repurchase again or not. That will depend on the cash generation in the next quarters.

Speaker #7: But that will depend on the cash generation in the next quarters.

Speaker 21: Okay, great. Thank you. Then, I know you were pretty clear just now about not having any maturities in the next five years or so, and so you don't have any real need to come to market. Some of your bonds do become callable later this year and into early next year. Is there a scope for you to think about addressing those or consider other liability management? Would this rate backdrop not necessarily lend to it? Thanks.

Priya Ohri-Gupta: Okay, great. Thank you. Then, I know you were pretty clear just now about not having any maturities in the next five years or so, and so you don't have any real need to come to market. Some of your bonds do become callable later this year and into early next year. Is there a scope for you to think about addressing those or consider other liability management? Would this rate backdrop not necessarily lend to it? Thanks.

Speaker #14: Okay, great, thank you. And then I know you were pretty clear just now about not having any maturities in the next five years or so, and so you don't have any real need to come to market.

Speaker #14: But some of your bonds do become callable later this year and into early next year. Is there scope for you to think about addressing those or consider other liability management or is this the rate backdrop that or would this rate backdrop not necessarily lend?

Guilherme Cavalcanti: Yeah. Now, the callable bonds, they have very low interest rates, so it's not worth it. The coupons are below Treasury. But there's opportunities to decrease interest rates and extend maturities on the 2034 and 2033 maturities. Maybe liability management could be targeted on those two bonds, 2033s and 2034s, which has high coupons and higher than what we could be issued today at 30-year, for example.

Speaker #14: Thanks.

Speaker #7: Yeah. Now, the callable bonds—they have a very low interest rate, so it's not worth it because bonds are below Treasury. But there's opportunity should decrease interest rates and extend maturities on the '34 and '33 maturities.

Speaker #7: So maybe I think it could be a liability management could be targeted on those two bonds—'33s and '34s—which have high coupons and higher than what we could be issued today at 30-year, for example.

Speaker 21: Thank you.

Priya Ohri-Gupta: Thank you.

Speaker #14: Thank you.

Operator: Next, we have Mr. John Baumgartner with Mizuho, who would like to ask a question. Go ahead, Mr. Baumgartner.

Speaker #1: And next, we have Mr. John Bobgartner with Mizuho, who would like to ask you a question. Go ahead, Mr. Bobgartner.

Speaker 22: Good morning. Thanks for the question. Two for me on North America. First on the value add side. I mean, traditionally, there's been a focus on value add through M&A. More recently, you've gotten involved in CapEx to build the Italian meats business. I am curious alternatively. I know you have relationship with Wendy's. You had done some test marketing of Wendy's burgers last summer. I'm curious what you sort of learned from that test market and how you think about maybe licensing third-party brands to get those value-added brands in-house in lieu of making expensive acquisitions or even investing to build brands from scratch.

John Baumgartner: Good morning. Thanks for the question. Two for me on North America. First on the value add side. I mean, traditionally, there's been a focus on value add through M&A. More recently, you've gotten involved in CapEx to build the Italian meats business. I am curious alternatively. I know you have relationship with Wendy's. You had done some test marketing of Wendy's burgers last summer. I'm curious what you sort of learned from that test market and how you think about maybe licensing third-party brands to get those value-added brands in-house in lieu of making expensive acquisitions or even investing to build brands from scratch.

Speaker #15: Good morning. Thanks for the question. Two for me on North America. First, on the value-add side. I mean, traditionally there's been a focus on value-add through M&A. More recently, you've gotten involved in CapEx to build the Italian meats business.

Speaker #15: But I am curious. Alternatively, I know you have a relationship with Wendy's. You had done some test marketing of Wendy's burgers last summer. I'm curious what you sort of learned from that test market and how you think about maybe licensing third-party brands to get those value-added brands in-house in lieu of making expensive acquisitions or even investing to build brands from scratch.

Guilherme Cavalcanti: Good morning. Look, we're obviously looking at every option. For us, greenfield has made more sense recently just because of valuations and the price of building some of these things. Actually, some of these businesses that we did greenfields, it's better to do, you know, to have a new plant instead of buying, you know, old assets. That was very specific to those greenfield acquisitions or the greenfield projects, sorry. You know, the project with Wendy's was very interesting. It was very. It worked out well, and it's great partners. You know, it's an option as well, but it's not, you know. We'll look at that too.

Wesley Batista Filho: Good morning. Look, we're obviously looking at every option. For us, greenfield has made more sense recently just because of valuations and the price of building some of these things. Actually, some of these businesses that we did greenfields, it's better to do, you know, to have a new plant instead of buying, you know, old assets. That was very specific to those greenfield acquisitions or the greenfield projects, sorry. You know, the project with Wendy's was very interesting. It was very. It worked out well, and it's great partners. You know, it's an option as well, but it's not, you know. We'll look at that too.

Speaker #7: Good morning. So look we we're looking at obviously look at every option. For us Greenfield has made more sense recently just because of valuations and the price of building some of these things.

Speaker #7: And actually, some of these businesses that we did Greenfields, it's better to have a new plant instead of buying old assets, and so that was very specific to those Greenfield acquisitions.

Speaker #7: Or Greenfield projects sorry. The project with Wendy's was very interesting. It was very it worked out well and it's a great partners. But it's an option as well but it's not we'll look at that too.

Guilherme Cavalcanti: We've seen that it's not necessarily, as you mentioned, you know, expensive as in kind of prohibitive to build brands. Look at what we've done with Just BARE, right? We never had an earnings call or Pilgrim's Pride hasn't had an earnings call that they said that they were, you know, had invested. The results weren't good or, for one reason, had a negative impact because we were building brands, right? We built brands as we built the business, and it was sustainable in itself. Nowadays, it's a $1 billion brand, so it's in revenue. I think it's possible to do those two things at the same time.

Wesley Batista Filho: We've seen that it's not necessarily, as you mentioned, you know, expensive as in kind of prohibitive to build brands. Look at what we've done with Just BARE, right? We never had an earnings call or Pilgrim's Pride hasn't had an earnings call that they said that they were, you know, had invested. The results weren't good or, for one reason, had a negative impact because we were building brands, right? We built brands as we built the business, and it was sustainable in itself. Nowadays, it's a $1 billion brand, so it's in revenue. I think it's possible to do those two things at the same time.

Speaker #7: But we've seen that it's not necessarily as you mentioned expensive as in kind of prohibitive to build brands. Look at what we've done with Just Bear right?

Speaker #7: It's, we never had an earnings call, or Pilgrim's hasn't had an earnings call, that they said that they had invested, the results weren't good, or for one reason had a negative impact because we were building brands, right?

Speaker #7: We built brands as we built the business and it was sustainable in itself. So and nowadays it's a $1 billion brand. So it's in revenue.

Speaker #7: So, I think it's possible to do those two things at the same time.

Speaker 22: Okay. Thanks for that. A follow-up, also in North America. Guilherme, I think you mentioned there's really no imminent M&A on the horizon here, but I am curious on the egg industry. You've seen where prices are for eggs. I'd imagine there's a fair amount of distressed profitability in the industry. I'm curious, looking at producer capitalization, that business specifically relative to beef, pork, other species where you've made acquisitions at the downtrend, you know, the down point in the cycle, how do you think about this profitability issue in eggs right now maybe accelerating your ability to build out and maybe be opportunistic and acquire some assets in eggs? Thank you.

John Baumgartner: Okay. Thanks for that. A follow-up, also in North America. Guilherme, I think you mentioned there's really no imminent M&A on the horizon here, but I am curious on the egg industry. You've seen where prices are for eggs. I'd imagine there's a fair amount of distressed profitability in the industry. I'm curious, looking at producer capitalization, that business specifically relative to beef, pork, other species where you've made acquisitions at the downtrend, you know, the down point in the cycle, how do you think about this profitability issue in eggs right now maybe accelerating your ability to build out and maybe be opportunistic and acquire some assets in eggs? Thank you.

Speaker #15: Okay, thanks for that. And a follow-up also in North America. Guilherme, I think you mentioned there's really no imminent M&A on the horizon here.

Speaker #15: But I am curious on the egg industry. You've seen where prices are for eggs—I'd imagine there's a fair amount of distressed profitability in the industry.

Speaker #15: I'm curious, looking at producer capitalization at that business specifically, relative to beef, pork, and other species, where you've made acquisitions at the downtrend—the down point in the cycle.

Speaker #15: How do you think about this profitability issue in eggs right now maybe accelerating your ability to build out and maybe be opportunistic and acquire some assets in eggs?

Speaker #15: Thank you.

Guilherme Cavalcanti: Hi, John Baumgartner. Basically, it all depends on having the opportunity at the asset price. Sometimes it's not related to the current egg price. We're always looking at opportunities. It's difficult to say, and that's our approach. It has to be an accretive acquisition.

Speaker #7: Hi John. So basically it all depends on having the opportunity at the asset price. So sometimes it's not related to the current egg price.

Speaker #7: And we always looking at opportunities. So it's difficult to say and then it's that's our approach. It has to be an accretive acquisition. So yeah.

Speaker 22: Thanks for your time.

John Baumgartner: Thanks for your time.

Guilherme Cavalcanti: Okay.

Speaker #1: Thanks for your time.

Speaker #7: Okay.

Operator: Ladies and gentlemen, with there being no further questions, I would like to pass the floor to Mr. Gilberto Tomazoni.

Speaker #1: Ladies and gentlemen with there being no further questions I would like to pass the floor to Mr. Guilberto Tomazoni.

Guilherme Cavalcanti: I would like to thank everyone for joining us today and all JBS team members for their dedication and commitment to deliver the results. Let me close with three key points. First, growth. We delivered record revenue of $86 billion, a 13% growth year over year, reflecting the strength and consistency of our global platform. Second, return. We continue to operate with a strong capital discipline, with return on equity at 25% and return on invested capital at 17%. Third, earnings per share. EPS reached $1.89, up 15% year over year, growing faster than net income and reinforcing our focus on shareholder value. As we look ahead, we haven't changed our focus: execution, efficiency, and disciplined capital allocation. That is what allowed us to deliver consistent results and build long-term value.

Speaker #16: I would like to thank everyone for joining us today, and all JBS team members for their dedication and commitment to deliver the results. Let me close with three key points.

Speaker #16: First go, we deliver record revenue of $86 billion and 13% growth for the previous year, reflecting the stress of the inconsistency of a global platform.

Speaker #16: Second, we continue to operate with strong capital discipline, with return on equity at 25% and return on invested capital at 17%. Third, earnings per share (EPS) reached $1.89, up 15% year over year.

Speaker #16: Growing faster than net income and reinforce our focus on shareholder value. As we look ahead we haven't changed our focus execution efficiency and discipline and capital allocation.

Speaker #16: That is what allowed us to deliver consistent results and build long-term value. Thank you.

Guilherme Cavalcanti: Thank you.

Operator: This is the end of the conference call held by JBS. Thank you very much for your participation, and have a nice day.

Speaker #1: This is the end of the conference call held by JBS. Thank you very much for your participation and have a nice day.

Speaker 21: Goodbye.

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