EGGY3

GRANJA FARIA S.A. is a company in the egg production sector that has built, over roughly two decades, a relevant position in the poultry protein chain in Brazil. The economic group originated in 2006 in Nova Mutum (MT), from the activities of rural producer Ricardo Faria, initially structured to meet BRF S.A.’s demand for hatching eggs under an integration system. In 2008, it expanded hatching egg production to Videira (SC) and, in 2009, to Fazenda Vila Nova (RS), strengthening its presence in the South region. An important milestone occurred in 2013, with the acquisition of Avícola Catarinense, then with more than 24 years of experience in the poultry market, which was later renamed Granja Faria S.A. The entry of the current controlling shareholder enabled the company to double the scale of its operations and expand into new units, including in Erval Velho (SC), focused on producing hatching eggs for the foreign market.

Over the following years, the company adopted a growth strategy based on acquisitions and partnerships, seeking production scale and commercial reach. In 2012, the group also began operating in broiler production in Campo Mourão (PR), in partnership with then Tyson (now JBS). From 2018 onwards, it began diversifying into table eggs, with the creation of the Ares do Campo brand in Palhoça (SC) and the purchase of production facilities in Darcinópolis (TO), Arapongas (PR), and Farroupilha (RS). In 2019, the acquisitions of ASA and IANA in Minas Gerais tripled the size of its table egg operations. In 2020 and 2021, this was followed by the acquisitions of Avimor in Nova Prata (RS) and Alexaves in Alexânia (GO). In 2023, the company incorporated BL Ovos and acquired an interest in Katayama Alimentos in São Paulo, expanding its presence in major consumer markets. In 2024, it began to control 90% of Vitagema, in Rio Grande do Norte, and in 2025 it concluded the purchase of 100% of Tamago, in Pernambuco, strengthening its position in the Northeast.

The corporate structure was gradually adapted to the capital markets. In 2020, the company began its relationship with institutional investors through a debenture issuance. In 2023, it obtained a category A public company registration and listed its shares in B3’s traditional segment under the ticker EGGY3, with the goal of financing organic expansion and new acquisitions. The EGGY3 shares came to represent a capitalization vehicle for a group already consolidated operationally, with a track record of integrating regional poultry assets and building a national egg production platform. The B3 listing placed GRANJA FARIA S.A. among the animal protein companies with direct access to the Brazilian capital market.

GRANJA FARIA S.A.’s business model is based on a vertically integrated operation in the egg chain, combining table eggs, hatching eggs, day-old chicks, processed products, and incubation services. In 2024, the company reported net revenue of R$ 2,059 million and EBITDA of R$ 645 million, with 85.2% of revenue coming from the table egg segment and 14.8% from hatching eggs. Operations include 14 table egg production units, 10 hatching egg units, and 1 hatchery, as well as 3 egg processing plants, supported by a network of around 60 integrated producers. The company also produces organomineral fertilizers from poultry activity waste, adding value to by-products of the production cycle.

In the table egg segment, which is predominant in revenue generation, GRANJA FARIA S.A. produces more than 10 million boxes of eggs per year, with around 16.5 million laying hens housed. The birds are raised in cage systems and cage-free systems, as in the case of the Ares do Campo brand, and collection is mostly mechanized. The portfolio includes conventional, free-range, specialty, and quail eggs, sold both in natura and in processed forms (liquid and dried, whole, whites, or yolks). The company operates 14 production units distributed across nine states and has 16 distribution bases, serving more than 4,000 direct customers, such as supermarket chains, cash-and-carry stores, regional retailers, and restaurants. The company has its own fleet of more than 300 trucks, making around 650 deliveries per day and 15,000 deliveries per month, which ensures high logistical capillarity in 20 states and in the Federal District.

The hatching egg and day-old chick segment is structured in 11 production units (10 farms and 1 hatchery) in five Brazilian states: Mato Grosso, Goiás, Paraná, Santa Catarina, and Rio Grande do Sul. Annual production exceeds 150 million hatching eggs, with incubation capacity of more than 11 million eggs and approximately 1.2 million breeder hens. At this scale, the company holds an estimated share of about 6% of Brazil’s production of broiler hatching eggs, supplying mainly large poultry processors such as JBS, BRF, Aurora, and other food companies. In the table egg market, the company competes with groups such as Granja Mantiqueira, Yabuta, Kerovos, and Granja Almeida, pursuing scale, supply integration, and geographic reach as key competitive factors.

GRANJA FARIA S.A.’s geographic presence is nationwide, with production and logistics operations spread from the North to the South of the country and commercial activity in 20 states plus the Federal District. The company also records revenue abroad, especially from sales of hatching eggs and derivatives, with 9% of 2024 net revenue coming from customers based outside Brazil. Among the main international destinations are Mexico, Taiwan, South Africa, the United Arab Emirates, Senegal, and Chile, among other markets, which diversifies revenue sources and exposes the company to the dynamics of international trade in poultry protein and reproductive inputs.

From a regulatory standpoint, GRANJA FARIA S.A. operates in an environment that is heavily supervised by federal, state, and municipal agencies. Egg production, incubation, and marketing of products of animal origin require registration and inspection by the Ministry of Agriculture and Livestock, through DIPOA, in accordance with industrial and sanitary inspection legislation. The units must meet requirements for labeling, packaging, transport, and sanitary control, including certifications for breeder poultry establishments with respect to agents such as Salmonella and Mycoplasma. The production and marketing of organomineral fertilizers require establishment and product registration with MAPA via the SIPEAGRO system. The manufacture of feed and products intended for animal nutrition is also regulated, with periodic registration requirements. In addition, the foodservice operations of the Eggy brand, a restaurant chain focused on egg-based dishes, are subject to ANVISA health regulations and local health surveillance rules.

In terms of environmental, social, and governance practices, the company states that it adopts ESG principles in its culture, although it does not yet publish formal sustainability reports. The strategy includes a focus on animal welfare, management of the birds’ life cycle, and the use of technologies for monitoring production and operating indicators. The Ares do Campo brand, dedicated to producing free-range eggs from hens fed natural diets, holds certifications such as Certified Humane – Raised & Handled, organic certification from IBD, and the WQS seal, associated with specific management and sustainability criteria. The company predominantly uses biodegradable and recycled egg packaging, seeks to reduce water waste and optimize energy consumption, and sells chicken manure as a natural fertilizer. In governance, it has had a professional board of directors since 2017, with independent members, and an executive structure with experience in the sector, reinforcing management standards aligned with its new status as a publicly traded company listed on B3.

In sourcing, GRANJA FARIA S.A. faces strong dependence on corn and soybean meal, inputs that account for more than 60% of the total cost of raising poultry. To mitigate price volatility, the company maintains a specialized grain purchasing team, adopts hedging strategies, and has storage capacity of more than 140 thousand tons. Its corporate proximity to Terrus S.A., one of the country’s major grain producers under the control of the same shareholder, contributes to access to market information and greater supply predictability, although without characterizing exclusive dependence. This combination of partial verticalization of inputs, production scale in table eggs, significant presence in hatching eggs, and logistical capillarity defines the operational profile of the company represented by the EGGY3 shares on B3.