| Segment Information |
The operating segments are reported consistently
with the management reports provided to the main strategic and operational decision makers for assessing the performance of each segment
and allocation of resources. The operating segments information is prepared considering three reportable segments, being: Brazil, International
and Other segments.
The operating segments include the sales of all
distribution channels and are subdivided according to the nature of the products, for which the characteristics are described below:
| » | | In-natura: production and sale of whole poultry
and cuts and pork and other cuts; |
| » | | Semi-processed: production and marketing of in-natura
cooked and smoked foods; |
| » | | Processed: production and sale of processed food,
frozen and processed products derived from poultry, pork and beef, margarine, vegetables and soybean-based products; |
| » | | Other sales: sale of flour for food service and
others. |
Other segments are comprised of commercialization
and development of animal nutrition ingredients, human nutrition, plant nutrition (fertilizers), healthcare (health and wellness), pet
food, as well as commercialization of agricultural products.
The items not allocated to the segments are presented
as Corporate and refer to relevant events not attributable to the operating segments.
The net sales by nature for each reportable
operating segment is set forth below:
| Schedule of net sales by nature for each reportable
operating segment |
|
|
|
|
|
|
| Net sales |
|
12.31.24 |
|
12.31.23
Restated |
|
12.31.22
Restated |
| Brazil |
|
|
|
|
|
|
| In-natura |
|
7,082,453 |
|
6,133,183 |
|
6,170,775 |
| Semiprocessed (1) |
|
1,988,415 |
|
1,733,981 |
|
1,767,128 |
| Processed |
|
19,675,454 |
|
18,683,405 |
|
18,933,319 |
| Other sales |
|
94,311 |
|
308,349 |
|
126,566 |
| |
|
28,840,633 |
|
26,858,918 |
|
26,997,788 |
| |
|
|
|
|
|
|
| International |
|
|
|
|
|
|
| In-natura |
|
24,597,920 |
|
20,252,213 |
|
20,497,773 |
| Semiprocessed (1) |
|
651,624 |
|
352,087 |
|
435,854 |
| Processed |
|
3,755,026 |
|
3,104,193 |
|
2,830,673 |
| Other sales |
|
168,585 |
|
143,271 |
|
338,835 |
| |
|
29,173,155 |
|
23,851,764 |
|
24,103,135 |
| |
|
|
|
|
|
|
| Other segments |
|
3,365,250 |
|
2,904,758 |
|
2,704,105 |
| |
|
61,379,038 |
|
53,615,440 |
|
53,805,028 |
| (1) | | In 2024, the company included a new type of product called “semi-processed products”,
so the figures for 2023 and 2022 have been restated. |
The gross profit and income (loss) before financial
results for each segment and for Corporate are set forth below:
| Schedule of operating income for each operating segment |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gross profit |
|
Income (loss) before financial results and income taxes |
| |
|
12.31.24 |
|
12.31.23 |
|
12.31.22 |
|
12.31.24 |
|
12.31.23 |
|
12.31.22 |
| Brazil |
|
7,733,707 |
|
5,916,699 |
|
3,892,719 |
|
2,750,655 |
|
1,602,298 |
|
(352,138) |
| Margin (%) |
|
26.8% |
|
22.0% |
|
14.4% |
|
9.5% |
|
6.0% |
|
-1.3% |
| International |
|
7,431,712 |
|
2,121,851 |
|
3,523,769 |
|
3,981,318 |
|
(1,214,167) |
|
403,661 |
| Margin (%) |
|
25.5% |
|
8.9% |
|
14.6% |
|
13.6% |
|
-5.1% |
|
1.7% |
| Other segments |
|
775,647 |
|
764,791 |
|
716,164 |
|
322,569 |
|
357,720 |
|
440,062 |
| Margin (%) |
|
23.0% |
|
26.3% |
|
26.5% |
|
9.6% |
|
12.3% |
|
16.3% |
| Subtotal |
|
15,941,066 |
|
8,803,341 |
|
8,132,652 |
|
7,054,542 |
|
745,851 |
|
491,585 |
| Corporate |
|
(105,250) |
|
30,360 |
|
- |
|
(214,156) |
|
90,290 |
|
(627,874) |
| Total |
|
15,835,816 |
|
8,833,701 |
|
8,132,652 |
|
6,840,386 |
|
836,141 |
|
(136,289) |
| Margin (%) |
|
25.8% |
|
16.5% |
|
15.1% |
|
11.1% |
|
1.6% |
|
-0.3% |
The composition of selected items that were
not allocated to the Company’s operating segments as they are not linked to its main activity and, therefore, were presented as
Corporate is set forth below:
| Schedule
of composition allocated to the company operating segments |
|
|
|
|
|
|
| Corporate |
|
12.31.24 |
|
12.31.23 |
|
12.31.22 |
| Results with sale and disposal of fixed assets and investments |
|
(3,527) |
|
86,475 |
|
3,582 |
| Reversal/(provision) for tax and civil contingencies |
|
(79,546) |
|
21,707 |
|
(50,397) |
| Gains (losses) with demobilization |
|
(8,915) |
|
(277) |
|
1,398 |
| Investigations involving the Company |
|
- |
|
(1,111) |
|
(588,774) |
| Weather events |
|
(112,701) |
|
- |
|
- |
| Other |
|
(9,467) |
|
(16,504) |
|
6,317 |
| |
|
(214,156) |
|
90,290 |
|
(627,874) |
No customer individually or in aggregate (economic
group) accounted for more than 5% of net sales in the years ended December 31, 2024, and 2023.
The goodwill arising from business combinations
and the intangible assets with indefinite useful life (trademarks) were allocated to the reportable operating segments, considering the
economic benefits generated by such intangible assets. The allocation of these intangible assets is presented below:
| Schedule of goodwill and intangible assets arising from business combination |
|
|
|
|
|
|
|
|
|
|
|
| |
Goodwill |
|
Trademarks |
|
Total |
| |
12.31.24 |
|
12.31.23 |
|
12.31.24 |
|
12.31.23 |
|
12.31.24 |
|
12.31.23 |
| Brazil |
1,151,498 |
|
1,151,498 |
|
982,478 |
|
982,478 |
|
2,133,976 |
|
2,133,976 |
| International |
2,159,259 |
|
1,783,873 |
|
549,072 |
|
415,904 |
|
2,708,331 |
|
2,199,777 |
| Other segments |
460,505 |
|
455,567 |
|
474,716 |
|
474,871 |
|
935,221 |
|
930,438 |
| |
3,771,262 |
|
3,390,938 |
|
2,006,266 |
|
1,873,253 |
|
5,777,528 |
|
5,264,191 |
Information related to total assets by reportable
segment is not disclosed, as it is not included in the set of information made available to the Company’s management, which makes
investment decisions and determine allocation of resources based on information about the assets.
Segment information
|
Accounting policy:
An operating segment is a component of the
Company that develops business activities to obtain revenues and incur expenses. The operating segments reflect the way in which the
Company’s management reviews the financial information for decision making. The Company’s management identified the operating
segments, which meet the quantitative and qualitative parameters of disclosure, pursuant its current management model. |
|