The trend — the natural trend and more than natural, the pursued trend is the trend of growth always without giving off profitability. So growth without profitability doesn’t make sense. So this serves to not only the strength of our brands, Sadia and Perdigao, but also the great capability of innovation of the company. It continues to be an innovative company focused on innovation and working with added value products. Growth for growth, it’s useless. So we have to have innovative products. We’re proud to be in this fourth quarter. We already worked with our portfolio of innovation, performing really well, not only in volume creations and innovation, but also in results of these innovations. This makes us really excited for the future.
Thiago Bortoluci: Thank you, Miguel. If you allow me, very brief follow-up, you commented about the continuous focus between growth and profitability. You got over almost six and you understand that this could run two-digits. Although the range of two digits, it makes sense to imagine that there was — would be an appetite in this level of profitability to reinvest in growth?
Miguel de Souza Gularte: Our focus, our priority focus at the moment with this idle capacity is clear, and we have been working to make that happen. But the growth — inorganic growth for the company or market opportunities, they’re going to find the company the leverage and very careful in the sense that these opportunity is real and factual. I think that the growth aspect goes through certain degrees, a very important degree of responsibility. The company cannot grow at any cost, but it has to grow. It has to grow. In this aspect, our Controller gave us a strategic drive that is really clear that company has to continue growing. We are working, so this growth is sustainable and profitable and makes sense from the strategic standpoint, commercial standpoint, operational standpoint, and especially harmonized in all these aspects.
Growth, that is industrial growth that is factual only from the commercial standpoint. But we are working very carefully and criteriously to capture and to have opportunities so this growth is healthy and resilient.
Thiago Bortoluci: Excellent. Thank you, Miguel. And again, congratulations to the whole BRF team.
Operator: Our next question comes from Lucas Mussi from Morgan Stanley. Lucas, your microphone is open.
Lucas Mussi: Good morning, everybody. Thank you for taking my question. I would like to go back to the topic of cost. I understand that you have an expectation that generating more favorable costs from the third quarter on, maybe in the fourth quarter. I’d like to focus on a short run-in the second quarter. If it’s reasonable to think that there is a possibility for the grain cost goes up quarter-per-quarter, given your inventories a little bit more in the short term and you more favorable than last year. If there is possibility in the short term, in the second quarter to see a little bit of increase. And my second question is in international side in prices. We see that part of the improvement of sequential prices, the improvement of some cuts and mixes.
But I would like to see at the end, in the second quarter, if you see the sustainability of these prices, there’ve been some seasonable follow-up that is not repeating in the second as Ramadan that it was more concentrated in the first quarter or different mix of countries. I like to hear a little bit more from you how you see cost and price, international cost and prices in the second quarter in comparison to the first quarter. Thank you.
Fabio Luis Mendes Mariano: Good morning, Lucas. Starting by the — your questions about costs. In comparison to transition to the second quarter, I think that the trend of maintaining, just to clarify that we don’t have an inventory in grains in for short term, that’s not how we work. We never put at risk the supply of the company. That’s why I refer to our position as a position last stretch it, so we could have condition in the smaller output production. Originate a little bit more of this production that we see as abundant. So you can expect cost from the feed side is stable in the second quarter in comparison to the first quarter. And, on the other hand, we’ve been discussing here in our efficiency plan, we expected the quarter per quarter to improve the indicators for performance, and this could have an effect — a positive effect in this transition.
But now, directing to the second question about the markets, exportation markets and prices. I think that several elements justify the performance and profitability of this segment of the company. The first one is that we had a recovery price recovery, basically, at all destinations that we operate in, not only to Halal, the Gulf region countries, but Africa, America, Asia within Asia, China. This was observed, and this has a positive influence on what we talked today. We have more choices, and we capitalize choices in regards to the maximization of prices. In Halal, we live a very good moment. Substantially, we had the Ramadan operations that intensify a little bit the local consumption, but we follow our strategy of, continue with the offer of added value products.
This makes our business more resilient, and we can take advantage of our local distribution. We have distribution in all Gulf countries where we operate. Talking a little bit about Turkey, we live a very good moment of profitability that has to do with decisions that we commented, for example, of expanding the line of industrialized products, that we are already at 90% of the more than expected this increase of representativeness of have that valid products in regards to the sold volume. So the trend for the second quarter is of not observing so much variability that we believe that because we took the decision of stretching portfolio. So the moments that we understood that prices were at good levels, we opted to stretch diversification orders.
This brings a little bit more resilience in a good part of the months that we have to trade exportations.
Lucas Mussi: Very clear. Thank you.
Operator: Our last question comes from Guilherme Palhares from Santander. Ms. Guilherme, your microphone is open.
Guilherme Palhares: Good morning, everybody. Thank you for taking my question. I don’t want to extend too much because I think people have already talked over most of the topics, but I would like to thank the management for the support to the [indiscernible] region. I think that is going to be important. This one to three reals campaign, It’s to encourage everybody who’s participating of the call to donate because the region is really going through a very difficult situation. Said that, I would like to explore a little bit of the industrial side of the company. We saw an improvement in the profit, the yielding, and mortality. We saw improvements in even if compared to the quarters in 2023 had some of the benefits that the company was pursuing.
I would like to understand when we look at the capability of the company today, looking at the same basis of we looked at this drop in mortality and the hatching. I would like to see to check the — it seems that the capability of the company has expanded, like around 20% since 2022 using this base of assets. And in the same sense, looking a little bit ahead, it seems that somebody made a comment I would like to make, understand that understand that that’s the case. Looking ahead, given this, improvement in the field, it seems that we’re going to have a cost, a unit cost looking ahead. And the question of feed is going down. So because this is going to generate inventory and finished product, this result for the company looking at a deadline until the end of the year if this understanding is correct.
So I’d like you to go into more details, the level of gain because the mortality has a major effect. And what are the next lines on this BRF+ 2.0 where you’re going to tackling, I think, most of it is already in the house. Thank you.
Fabio Luis Mendes Mariano: Good morning, Guilherme. Thank you for your question. I’m going to start the answer, and then I’ll hand over to Miguel to add. But I’m going to start by giving you a little bit of the colors of the captures that we have observed and quantified in numbers. R$438 million disclosed. We have 227 indicators associated to the field, hatching, mortality of animals and food conversion. And from the industry side, especially in yielding, it totaled a R$107 million in logistics, R$32 million, especially the reduction in cost and storage. And, finally, when we combine waste reduction and margin and innovation products because of the simplification of the portfolio that follows, we accounted R$72 million remaining.
So, this new phase of the efficiency program Miguel mentioned, we still have within our control, because it’s a spreading of results between locations. So we can still have, like we can transfer best practices from one place to another. So we are not in the situation of having to copy anyone or find an external benchmarking. We have well defined at the internal benchmarking that will give the possibilities as long as well executed. So we can continue on this journey of continuous improvement. Your understanding is correct as we make advances in the field. We have a cycle until the animal is slaughtered and we have the preparation of products, and we observed natural inventory turnover of finished products to feel this effect on the price of the sold product.
