MDIA3

M. Dias Branco S.A. Indústria e Comércio de Alimentos is a Brazilian company in the processed food sector, with common shares traded on B3 under the ticker MDIA3, and a history dating back to the 1940s in the state of Ceará. The group’s origin is linked to bakery activities and artisanal biscuit production conducted by Manuel Dias Branco, who in 1951 established the partnership M. Dias Branco & Cia. Ltda. The entry of his son, Francisco Ivens de Sá Dias Branco, in 1953 marked the transition to a large-scale industrial model focused on the production of biscuits and pasta. Over the following decades, the company developed a highly fragmented distribution model and expanded its presence to states neighboring Ceará, consolidating brands such as Fortaleza and, later, Richester. The relocation of the industrial complex to the municipality of Eusébio, completed in 1980, and the subsequent IPO in 2006, with listing on the Novo Mercado segment of the then BM&FBOVESPA, were important milestones in the institutionalization and expansion of the company.

M. Dias Branco’s business model is characterized by strong vertical integration, combining wheat milling, refining of vegetable oils and fats, and manufacturing of finished food products. The company operates in a focused manner in the processed foods segment, covering biscuits, pasta, wheat flour and bran, margarines and vegetable fats, snacks, cakes, cake mixes, toast, healthy foods, granola, gluten-free breads, sauces, seasonings, and other related items. A relevant portion of the wheat flour and vegetable fat used in the production process is produced in-house, which reduces dependence on external suppliers and allows greater control over costs and quality. All of the company’s net revenue and operating result come from the food products segment, evidencing a strategic focus concentrated on this value chain.

M. Dias Branco’s products are organized into three major operational categories: Core Products, Wheat Mills and Refining of Vegetable Oils and Margarines, and Adjacencies. The Core Products category, which comprises biscuits, pasta and margarines, accounts for the largest share of the company’s net revenue. In biscuits, the portfolio includes several subcategories such as água e sal/cream cracker, butter, coated, sweet, maria, maisena, filled, ring-shaped, savory, tartlets, wafers and cookies. In pasta, the company operates with regular, durum wheat, semolina, semolina with eggs, lasagna, microwave pasta, and instant noodles lines, while in margarines it produces items aimed both at household consumption and industrial use. The Wheat Mills and Refining of Vegetable Oils and Margarines category covers household and industrial flours, bran in different granulometries, and industrial fats for applications such as deep frying, ice cream, coatings, fillings and spray. Adjacencies include cakes, snacks, cake mixes, toast, healthy products, sauces and seasonings, segments that have been reinforced through acquisitions and portfolio innovation.

M. Dias Branco’s brand strategy is based on a broad portfolio with strong regional and national presence, covering different income brackets and consumer profiles. Among the main brands are Vitarella, Piraquê, Richester, Fortaleza, Adria, Isabela, Pilar, Estrela, Puro Sabor, Medalha de Ouro, Bonsabor, Zabet, Basilar, Predilleto, Finna, Puro Sabor, Amorela, Delicitos, Salsitos, Fit Food, Frontera, Smart, Taste&Co, Jasmine and Las Acacias. In Core Products, brands such as Vitarella, Piraquê, Richester, Fortaleza, Adria, Isabela and Pilar account for a significant share of gross revenue, while in the Wheat Mills and Refining of Vegetable Oils and Margarines group, Finna, aimed at end consumers, and Medalha de Ouro, focused on the bakery segment, stand out. In Adjacencies, brands such as Fit Food, Frontera, Jasmine, Piraquê, Adria, Vitarella and Finna drive the presence in snacks, health-oriented products, sauces and seasonings. Maintaining several brands in similar categories allows the company to achieve strong regional penetration and serve consumers ranging from lower-income segments to those with higher purchasing power.

From a geographic and industrial standpoint, M. Dias Branco has consolidated a manufacturing base distributed across different regions of Brazil and one production unit abroad. Industrial operations are concentrated in states such as Ceará, Rio Grande do Norte, Bahia, Paraíba, Pernambuco, São Paulo, Paraná, Rio de Janeiro and Rio Grande do Sul, with plants that combine wheat mills and factories for biscuits, pasta, cakes, toast, granola, snacks, margarines and fats. In the municipality of Eusébio (CE), for example, the company integrates wheat milling with the production of biscuits, pasta and toast, while in Salvador (BA), Cabedelo (PB), Natal (RN) and Bento Gonçalves (RS) it combines milling and the manufacture of pasta and biscuits in the same complex. The Uruguayan unit Las Acacias, in Montevideo, operates mainly in the production of dry wheat pasta and durum wheat semolina, as well as in associated categories. This configuration helps optimize logistics costs, increase production capacity, and adjust the production mix to the particularities of each regional market.

Since the beginning of its expansion, the company has developed a distribution model focused on highly granular coverage of the food retail channel, with strong presence among micro, small and medium-sized retailers. The historical strategy of door-to-door sales and frequent store visits has allowed it to closely track pricing behavior, assortment and product turnover, facilitating portfolio and positioning adjustments. Currently, M. Dias Branco maintains relationships with large retail and wholesale chains while preserving its vocation for highly fragmented service. In 2024, the largest individual customer accounted for 8.3% of net revenue, with purchases covering all product lines, which reveals a diversified customer base and reduces dependence on a single buyer. Production flexibility among industrial units and the logistics structure associated with port terminals dedicated to wheat also support the supply of the various regions served.

Vertical integration of the chain also includes stakes in port operations and grain logistics, mainly wheat. M. Dias Branco holds an interest in Terminal de Grãos de Fortaleza Ltda. (Tergran), together with other mills in the region, a company responsible for unloading and storing wheat at the Port of Fortaleza, with a focus on productivity and lower import costs. It also holds an interest in Terminal de Trigo do Rio de Janeiro – Logística S.A., a venture jointly controlled with Bunge Alimentos S.A., which leases an area at the organized port of Rio de Janeiro for handling and storing solid bulk of plant origin. These stakes complement the strategy of importing wheat grain through specialized terminals, strengthening the competitiveness of the flour and derivatives supply chain that feeds the production of pasta, biscuits and other processed products.

In the social-environmental and regulatory field, M. Dias Branco is subject to Brazilian environmental legislation at the federal, state and municipal levels, including requirements for environmental licensing of its production units and potentially polluting operations. All plants in operation have environmental licenses in effect or in the process of renewal, and the company maintains a system to monitor environmental legislation at its industrial units. In 2024, investments were made to comply with regulatory requirements, environmental management and maintenance of a specialized team, including effluent treatment plants at certain facilities and structured solid waste management with disposal through co-processing, incineration, recycling, reuse or shipment to licensed landfills, depending on the nature of the waste. Units such as Eusébio (CE) and Jaboatão dos Guararapes (PE) have environmental management systems certified under ISO 14001:2015, and the company has joined post-consumer packaging reverse logistics programs, in compliance with the National Solid Waste Policy. These elements, together with the disclosure of environmental targets in its ESG Agenda, reinforce the integration of environmental and governance aspects into industrial operations and the company’s positioning in the Brazilian processed food market.

As an issuer of shares listed on B3’s highest corporate governance segment, M. Dias Branco operates with a corporate structure that includes subsidiaries in Brazil and abroad, although some are in the process of being discontinued after becoming inoperative. Among the subsidiaries with relevant operations are Jasmine, focused on the production of healthy, organic, wholegrain, sugar-free and gluten-free foods, and Las Acacias, in Uruguay, focused on pasta and wheat derivatives. Expansion through acquisitions of regional and national biscuit and pasta brands such as Adria, Vitarella, Pilar, Estrela and others has shaped a group with a significant presence in the Brazilian market for processed foods based on wheat and derivatives. MDIA3 shares reflect this combination of an integrated industrial platform, a broad brand portfolio, and national and regional reach built over more than seven decades of operations in the food sector.