BAUH4: quote, dividends and indicators for Excelsior Alimentos

Excelsior Alimentos S.A. is a Brazilian company in the food sector, focused on the manufacture and sale of processed and frozen meat products. The Excelsior brand dates back to 1893, from a business initiative by Abraão Tatsch, later succeeded by the firm A. Evers & Cia. The first articles of incorporation related to the business were executed on October 24, 1930. In 1940, the company A. Evers & Cia. and the industrial establishment known as Frigorífico Excelsior were taken over by Baumhardt Irmãos & Cia. Ltda., a move that consolidated the industrial structure that would underpin current operations. In April 1968, the company became a publicly held corporation and carried out its first share issue, offered to the public through tax incentive funds. Excelsior Alimentos’ shares are traded on B3 under the tickers BAUH3 and BAUH4, placing the company among Brazilian issuers accessible to the local equity market.

Excelsior’s recent corporate history is marked by its integration into the JBS group. On September 30, 2013, JBS S.A. acquired control of the company, adding it to its business portfolio in the food segment. In August 2015, JBS transferred control of Excelsior Alimentos S.A. to Seara Alimentos Ltda., one of its subsidiaries, with the aim of better strategic alignment for processed products operations. The company’s headquarters are located in Santa Cruz do Sul, in the state of Rio Grande do Sul, on Rua Barão do Arroio Grande, in the Arroio Grande district, a region that traditionally concentrates activities related to agribusiness and meat processing. Being part of Seara places Excelsior within a larger corporate structure focused on the production and distribution of animal-based foods in the domestic market.

Excelsior Alimentos’ business model is based on the production of processed meats and the sale of a diversified line of chilled and frozen processed products. The company also purchases from third parties complementary items to its production line, which are integrated into the portfolio offered to retail and wholesale customers. Among the main traditional products of the brand are mortadella, sausage, ham, various types of linguiça and pates, as well as sliced product lines in different weights. The operating strategy involves the application of good manufacturing practices and compliance with established sanitary standards in a segment where traceability, quality control and regulatory compliance are intrinsic to business continuity. The main raw material, consisting of different types of meat, is fully sourced in the market, predominantly from suppliers located in the southern region of the country, all under federal inspection, in line with legal requirements for processing animal-based foods.

From an internal organization standpoint, Excelsior Alimentos structures its operations into two reportable segments: chilled processed and frozen processed. The chilled products segment covers items such as “apresuntado” (cured pork product), ham, cheese, cooked sliced products, smoked sausage, light line, mortadella, garlic bread, pates and sausages. The frozen segment includes hamburgers, fresh linguiça, party line products, snacks, pizzas, ready meals, sandwiches and frozen vegetables. Each of these strategic business units is managed separately and requires specific processing technologies, storage logistics and marketing strategies. In the fiscal year ended December 31, 2025, the chilled products segment accounted for 78% of the company’s net operating revenue, while the frozen segment represented 22% of revenue. On the same basis, operating profit attributable to the chilled segment accounted for 75% of results, with frozen accounting for the remaining 25%, indicating an economic predominance of the chilled portfolio in the company’s revenue and profit generation.

Excelsior Alimentos’ commercial activities are concentrated in the domestic market, with a focus on southern Brazil and a predominance in the state of Rio Grande do Sul. The company sells its products mainly to commercial establishments, using its own sales force, with employed sales representatives, and the support of commercial representation firms. Its customer base is segmented into three major channels: self-service (such as supermarket chains), wholesale (distributors and resellers) and traditional retail, with a differentiated relationship model for each channel, depending on size, purchasing profile and operational needs. Physical distribution is carried out from the factory in Santa Cruz do Sul and from branches located in Esteio, in Rio Grande do Sul, and Palhoça, in Santa Catarina, with transportation performed by contracted companies. Rio Grande do Sul accounts for more than 82% of total sales, showing a strong geographic concentration of revenue and a more limited presence in other regions of the country. All net operating revenue in the 2025 fiscal year was generated in the Brazilian domestic market, with no revenue from abroad, and the company does not operate as an exporter, which reduces exposure to foreign regulations but reinforces dependence on the domestic economic environment.

In terms of customer base, Excelsior Alimentos does not have material concentration in any single buyer, with no customer individually accounting for more than 10% of total net revenue. This dispersion reduces the risk of dependence on large specific accounts, even though revenue is regionally concentrated. The company owns a portfolio of registered trademarks related to its product lines with the Brazilian National Institute of Industrial Property (Instituto Nacional da Propriedade Industrial), including the “Excelsior” brand, as well as domain names such as “excelsior.com.br”, which protects commercial use of the brand in Brazil and supports its corporate identity and the differentiation of its products on supermarket, wholesale and food retail shelves.

The meat processing and derived products operation subjects Excelsior Alimentos to a highly regulated environment, with ongoing inspections by federal, state and municipal agencies. The company’s activities are subject to regulations issued by the Ministry of Health, the National Health Surveillance Agency (ANVISA), the Ministry of Agriculture, Livestock and Supply (MAPA) and other authorities responsible for regulating the processing, packaging, storage, distribution, labeling and advertising of food products. Each operating unit must hold valid licenses, have a responsible technical officer and implement self-control programs in compliance with health regulations. Non-compliance with legal obligations may result in administrative, civil and criminal penalties, including warnings, fines, shutdowns and cancellation of authorizations, making regulatory compliance a central aspect of operational risk management. In environmental matters, the company states that it complies with applicable legal and regulatory obligations and reports the gradual adoption of policies aimed at saving natural resources and respecting the environment, although it does not disclose greenhouse gas emissions inventories.

In terms of environmental, social and governance (ESG) practices, Excelsior Alimentos currently does not publish an annual report or specific document with performance indicators in these areas, nor does it adopt a formal materiality matrix or reports aligned with international standards such as the Sustainable Development Goals or TCFD recommendations. The company reports that it is evaluating the possibility of structuring transparent ESG disclosure in the future, including defining material topics, key indicators and any policies related to climate change. The absence of ESG reports and independent assurance of ESG data indicates an early stage in the formalization of these practices, consistent with its profile as a regionally focused company primarily engaged in the production and distribution of processed foods in the Brazilian market. In this context, Excelsior Alimentos S.A., through its BAUH3 and BAUH4 shares traded on B3, represents an issuer in the food sector with a century-long history, a strong regional footprint in southern Brazil and a business model concentrated in chilled and frozen processed meats, operating under a strict regulatory framework and with an ESG agenda under development.