Investor Presentaiton
116
FINANCIAL CAPITAL
ECONOMIC
AND FINANCIAL PERFORMANCE
GRI 103-2, 103-3 | 201
2021 INTEGRATED ANNUAL REPORT
COSTS
In 2021, the cost of goods sold
showed 14.9% growth versus
2020, representing 77.4% of net
revenue for the period (72.6% in
2020).
The 4.8 p.p. increase in COGS
representation on net revenue in
2021 versus 2020 was a result of
the following factors:
31.5% increase in the average
cost (R$) of wheat consumed;
↑61.4% increase in the average
cost (R$) of oil consumed;
↑35.0% increase in the average
cost (R$) of sugar consumed;
↑ Lower dilution of fixed costs
due to the 14.4% decrease in
volumes produced;
10.1% Inflation in 2021 (4.5%
in 2020)¹;
Cost of goods sold (R$ million)
Improved mix of volumes sold,
especially cookies and crackers.
As for the impact of wheat and
palm oil prices, the evolution
of acquisition prices in M. Dias
Branco's inventories and market
prices for the periods from 2020
to 2021 is evident in the graphs
on the next page.
Average acquisition price in M. Dias Branco Inventory x market prices
Wheat
(US$/t)
298
292
285
280
285
266 270
271
270
271
247 245
254 253
222 225
236
225
225 225 226
230
264 267
272
273 275
276
217 215
257 259
249
241
232 236
214
218
218 217
221
226
216
195 194 195
206
199
Jan 2020
Mar 2020
May 2020
Jul 2020
Sep 2020
Nov 2020
Jan 2021
Mar 2021
May 2021
Jul 2021
Sep 2021
Nov 2021
Dec 2021
Palm Oil
(US$/t)
Natal/RN
¹Historical series is available at: ibge.gov.
br/estatisticas/economicas/precos-e-cus-
tos/9256-indice-nacional-de-pre-
cos-ao-consumidor-amplo
1,451 1,476
1,383
1,206 1,227 1,242
1,140 1,161 1,155 1,149 1,129 1,110
1,216
1,152 1,131
1,121
967
996 1,032 1,069
919
1,119
1,031
767 800
773
788
809
726
757
781
964
984
995
694
846
822
739
684 670
691
700
642
627
641
585
583
622
Nov 2020 Jan 2021
Mar 2021
May 2021
Jul 2021
Sep 2021 Nov 2021 Dec 2021
Market
Jan 2020
Mar 2020 May 2020 Jul 2020 Sep 2020
*Source: Wheat - SAFRAS & Mercado; Palm oil - Rotterdam.
PRODUCTION
AND CAPACITY
UTILIZATION RATE
In 2021, production volume
and level of capacity utilization
were down 14.4% and 11.9 p.p.,
respectively.
It is worth noting that
production was stepped up
in 2020 in an effort to meet
the growing demand seen in
M. Dias Branco
the context of the onset of
the pandemic. Thus, the drop
is impacted by the strong
demand, mainly between 2Q20
and 3Q20, which led to the
reactivation of production lines
and introduction of new shifts,
resulting in a larger comparative
base.
2021
% NR
Raw materials
4,171.5
53.4%
Wheat
2,630.7
33.7%
2020
3,532.2
2,371.1
% NR
48.7%
32.7%
HA% HA-% NR
18.1%
10.9%
4.7 p.p.
1 p.p.
Oil
899.5
11.5%
588.1
8.1%
53.0%
3.4 p.p.
Sugar
225.2
2.9%
182.6
2.5%
23.3%
0.4 p.p.
Cookies and
crackers
Pasta
Flours and
Brans
Margarine Other
and
product
shortening lines**
Total
Flour acquired from third parties
7.5
0.1%
16.3
0.2%
-54.0%
-0.1 p.p.
Effective
Shortening acquired from third
1.7
0.0%
2.9
0.0%
-41.4%
O p.p.
Production/
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
parties
Other inputs
406.9
5.2%
371.2
5.1%
9.6%
0.1 p.p.
production
capacity*
Packaging
530.5
6.8%
478.3
6.6%
10.9%
0.2 p.p.
Total Production
531.1 598.4 380.0 462.0 1,493.1 1,765.1 176.0 192.1
16.3
17.0 2,596.5 3,034.6
Labor
646.0
8.3%
623.6
8.6%
3.6%
-0.3 p.p.
Total Production
896.5 896.1 562.7 580.8 2,470.9 2,319.6 360.0 385.7 36.3
38.7 4,326.4 4,220.9
General manufacturing costs
514.0
6.6%
452.6
6.2%
13.6%
0.4 p.p.
Capacity***
Depreciation and amortization
184.5
2.4%
176.6
2.4%
4.5%
O p.p.
Capacity
Cost of goods sold
1.5
0.0%
0.0%
n/a
0 p.p.
Total
6,048.0
77.4%
5,263.3
72.6%
14,9%
4.8 p.p.
Utilization Level
59.2% 66.8% 67.5% 79.5% 60.4% 76.1% 48.9% 49.8% 44.9% 43.9% 60.0% 71.9%
*In thousand tons *Cakes, snacks, cake mix and packaged toast ***The total production capacity is the maximum yield that can be
extracted from the equipment, considering reductions caused by the maintenance stops, setup time, cleaning of lines, restrictions
on the maximum number of shifts allowed at the plants, etc.View entire presentation