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COMPANY’S OPERATIONS (Tables)
 12 Months Ended
Dec. 31, 2021
Companys Operations  
Schedule of equity interest

                   
              % equity interest
Entity     Main activity   Country (1)   12.31.21   12.31.20
BRF GmbH (n)   Holding   Austria   100.00    100.00
BRF Foods LLC (g)   Import, industrialization and commercialization of products   Russia   99.99    99.90
BRF Global Company Nigeria Ltd.     Marketing and logistics services   Nigeria   99.00    99.00
BRF Global Company South Africa Proprietary Ltd.     Administrative, marketing and logistics services   South Africa   100.00    100.00
BRF Global Company Nigeria Ltd.     Marketing and logistics services   Nigeria   1.00   1.00
BRF Global GmbH     Holding and trading   Austria   100.00    100.00
BRF Foods LLC (h)   Import, industrialization and commercialization of products   Russia   0.01   0.10
BRF Japan KK     Marketing and logistics services, import, export, industrialization and commercialization of products   Japan   100.00    100.00
BRF Korea LLC     Marketing and logistics services   Korea   100.00    100.00
BRF Shanghai Management Consulting Co. Ltd.     Provision of consultancy and marketing services   China   100.00    100.00
BRF Shanghai Trading Co. Ltd.     Import, export and commercialization of products   China   100.00    100.00
BRF Singapore Foods PTE Ltd.     Administrative, marketing and logistics services   Singapore   100.00    100.00
Eclipse Holding Cöoperatief U.A.     Holding   The Netherlands   99.99    99.99
Buenos Aires Fortune S.A.     Holding   Argentina   4.36   4.36
Eclipse Latam Holdings     Holding   Spain   100.00    100.00
Buenos Aires Fortune S.A.     Holding   Argentina   95.64    95.64
Perdigão Europe Lda.     Import, export of products and administrative services   Portugal   100.00    100.00
Perdigão International Ltd. (d)   Import and export of products   Cayman Island    -     100.00
ProudFood Lda.     Import and commercialization of products   Angola   90.00    90.00
Sadia Chile S.A.     Import, export and commercialization of products   Chile   40.00    40.00
Wellax Food Logistics C.P.A.S.U. Lda.     Import, commercialization of products and administrative services   Portugal   100.00    100.00
One Foods Holdings Ltd.     Holding   UAE   100.00    100.00
Al-Wafi Food Products Factory LLC (p)   Import, export, industrialization and commercialization of products   UAE   49.00    49.00
Badi Ltd.     Holding   UAE   100.00    100.00
Al-Wafi Al-Takamol International for Foods Products     Import and commercialization of products   Saudi Arabia   100.00    100.00
Joody Al Sharqiya Food Production Factory LLC (b)   Import and commercialization of products   Saudi Arabia   100.00   - 
BRF Kuwait WLL (c)   Import, commercialization and distribution of products   Kuwait   49.00    75.00
BRF Foods GmbH     Industrialization, import and commercialization of products   Austria   100.00    100.00
Al Khan Foodstuff LLC ("AKF") (p)   Import, commercialization and distribution of products   Oman   70.00    70.00
FFQ GmbH (e)   Industrialization, import and commercialization of products   Austria    -     100.00
TBQ Foods GmbH (o)   Holding   Austria   60.00    60.00
Banvit Bandirma Vitaminli     Import, industrialization and commercialization of products   Turkey   91.71    91.71
Banvit Enerji ve Elektrik ÜretimLtd. Sti. (a)   Generation and commercialization of electric energy   Turkey   100.00    100.00
Banvit Foods SRL (f)   Industrialization of grains and animal feed   Romania    -    0.01
Nutrinvestments BV     Holding   The Netherlands   100.00    100.00
Banvit ME FZE     Marketing and logistics services   UAE   100.00    100.00
Banvit Foods SRL (f)   Industrialization of grains and animal feed   Romania    -     99.99
One Foods Malaysia SDN. BHD.     Marketing and logistics services   Malaysia   100.00    100.00
Federal Foods LLC (p)   Import, commercialization and distribution of products   UAE   49.00    49.00
Federal Foods Qatar (p)   Import, commercialization and distribution of products   Qatar   49.00    49.00
BRF Hong Kong LLC (a)   Import, commercialization and distribution of products   Hong Kong   100.00    100.00
Eclipse Holding Cöoperatief U.A.     Holding   The Netherlands   0.01   0.01
Establecimiento Levino Zaccardi y Cia. S.A. (a)   Industrialization and commercialization of dairy products   Argentina   99.99    99.99
BRF Energia S.A.     Commercialization of eletric energy   Brazil   100.00    100.00
BRF Pet S.A.     Industrialization, commercialization and distribution of feed and nutrients for animals   Brazil   100.00    100.00
Affinity Petcare Brasil Participações Ltda. (m)   Holding   Brazil   100.00    - 
Mogiana Alimentos S.A.     Manufacturing, distribution and sale of Pet Food products   Brazil   50.00    - 
Gewinner Participações Ltda. (j)   Industrialization, distribution and sale of feed and nutrients for animals   Brazil   100.00    - 
Hecosul Alimentos Ltda.     Manufacturing and sale of animal feed   Brazil   100.00    - 
Hercosul Distribuição Ltda.     Import, export, wholesale and retail sale of food products for animals   Brazil   100.00    - 
Hercosul Soluções em Transportes Ltda.     Road freight   Brazil   100.00    - 
Hercosul International S.R.L. (k)   Manufacturing, export, import and sale of feed and nutrients for animals   Paraguay   99.00    - 
Paraguassu Participações S.A. (m)   Holding   Brazil   100.00    - 
Mogiana Alimentos S.A.     Manufacturing, distribution and sale of Pet Food products   Brazil   50.00    - 
Hercosul International S.R.L. (k)   Manufacturing, export, import and sale of feed and nutrients for animals   Paraguay   1.00    - 
PP-BIO Administração de bem próprio S.A. (i)   Management of assets   Brazil    -     33.33
PR-SAD Administração de bem próprio S.A.     Management of assets   Brazil   33.33    33.33
ProudFood Lda.     Import and commercialization of products   Angola   10.00    10.00
PSA Laboratório Veterinário Ltda.     Veterinary activities   Brazil   99.99    99.99
Sino dos Alpes Alimentos Ltda. (a)   Industrialization and commercialization of products   Brazil   99.99    99.99
Sadia Alimentos S.A.     Holding   Argentina   43.10    43.10
Sadia Chile S.A.     Import, export and commercialization of products   Chile   60.00    60.00
Sadia International Ltd. (l)   Import and commercialization of products   Cayman Island    -     100.00
Sadia Uruguay S.A.     Import and commercialization of products   Uruguay   100.00    100.00
Sadia Alimentos S.A.     Holding   Argentina   56.90    56.90
Vip S.A. Empreendimentos e Participações Imobiliárias     Commercialization of owned real state   Brazil   100.00    100.00
Establecimiento Levino Zaccardi y Cia. S.A. (a)   Industrialization and commercialization of dairy products   Argentina   0.01   0.01
PSA Laboratório Veterinário Ltda.     Veterinary activities   Brazil   0.01   0.01
Sino dos Alpes Alimentos Ltda. (a)   Industrialization and commercialization of products   Brazil   0.01   0.01
(1)UAE – United Arab Emirates.
(a)Dormant subsidiaries. The Company is evaluating the liquidation of these subsidiaries.
(b)On January 18, 2021, 100% of the capital stock of Joody Al Sharqiya Food Production Factory LLC was acquired (note 1.2.1).
(c)On March 9, 2021, the minority stake on BRF AFC was acquired (note 1.1.1) and on December 27, 2021 its name was changed to BRF Kuwait WLL and the participation reduced to 49%. The Company has a shareholders’ agreement that ensures full economic rights on this entity.
(d)On March 24, 2021, the subsidiary Perdigão International Ltd. was dissolved.
(e)On March 30, 2021, the subsidiary FFQ GmbH was dissolved.
(f)On May 4, 2021 the sale of shares held in Banvit Foods SRL was concluded (note 1.1.2).
(g)On May 31, 2021, BRF GmbH purchased additional 0.09% interest in BRF Food LLC from BRF Global GmbH.
(h)On May 31, 2021, BRF Global GmbH sold 0.09% interest in BRF Food LLC to BRF GmbH.
(i)On July 30, 2021, BRF S.A. sold all the shares held in PP-BIO Administração de bem próprio S.A.
(j)On August 02, 2021, BRF Pet S.A. acquired 100% of the capital stock of Gewinner Participações Ltda. (note 1.2.2).
(k)On August 02, 2021, BRF S.A. and BRF Pet S.A. acquired interest in Hercosul International S.R.L. (note 1.2.2).
(l)On August 19, 2021, the subsidiary Sadia International Ltd. was dissolved.
(m)On September 01, 2021, BRF Pet S.A. acquired 100% of the capital stock of Affinity Petcare Brasil Participações Ltda. and Paraguassu Participações S.A. (note 1.2.3).
(n)On October 21, 2021 the merger of BRF Austria GmbH into BRF GmbH was approved retroactively to January 01, 2021, as permitted by the Austrian law. The entities previously presented as investees of BRF Austria GmbH are currently presented as BRF GmbH’s investees.
(o)On December 13, 2021, the put option held by minority shareholders was terminated (note 1.1.3).
(p)For these entities, the Company has agreements that ensure full economic rights, except for AKF, in which the economic rights are of 99%.
The fair value of the acquired assets and assumed liabilities in the business combination is presented below:

The fair value of the acquired assets and assumed liabilities in the business combination is presented below:

    Fair value at the acquisition date
Assets    
Cash and cash equivalents    408
Inventories    832
Property, plant and equipment   30,128
Other current and non-current assets     232
Total   31,600
Liabilities    
Trade accounts payable   1,420
Taxes payable    550
Employee benefits    286
Other current and non-current liabilities    100
Total   2,356
     
Net assets acquired   29,244
     
Fair value of consideration transferred   40,720
     
Goodwill   11,476
The fair value of the assets acquired and liabilities assumed in the business combination with Hercosul Group is presented below:

The fair value of the assets acquired and liabilities assumed in the business combination with Hercosul Group is presented below:

         
    Fair value at the acquisition date
    Gewinner Participações
Consolidated		   Hercosul International
Assets        
Cash and cash equivalents   17,743   4,402
Trade and other receivables   40,767   8,413
Inventories   36,826   10,049
Recoverable taxes   15,385   3,643
Property, plant and equipment   70,796   72,035
Intangible assets   393,308   3,656
Other current and non-current assets   28,794   2,805
Total   603,619   105,003
Liabilities        
Social and Labor Obligations   6,445    200
Trade accounts payable   66,597   8,582
Taxes payable   14,879    200
Loans and borrowings   65,892   30,268
Provision for tax, civil and labor risks (1)   5,949    -
Lease liability   3,961    614
Deferred income taxes   1,703    -
Other current and non-current liabilities   8,130   20,478
Total   173,556   60,342
         
Net assets acquired   430,063   44,661
         
Fair value of consideration transferred   743,156   69,765
         
Goodwill   313,093   25,104

 

(1)Includes R$5,038 related to contingent liabilities recognized in the business combination.
The fair value of the assets acquired and liabilities assumed in the business combination with Hercosul Group is presented below:

The fair value of the assets acquired and liabilities assumed in the business combination with Hercosul Group is presented below:

Mogiana Group Combined   Fair value at the acquisition date
Assets    
Cash and cash equivalents    938
Marketable securities   29,824
Trade and other receivables   59,758
Inventories   54,517
Recoverable taxes   27,748
Property, plant and equipment   139,042
Intangible assets   206,553
Other current and non-current assets   5,486
Total   523,866
Liabilities    
Trade accounts payable   55,919
Loans and borrowings   22,688
Lease liability   10,168
Taxes payable   11,487
Payroll, related charges and employee profit sharing   6,296
Provision for tax, civil and labor risks (1)   34,976
Employee benefits   2,081
Deferred income taxes    815
Other current and non-current liabilities   16,932
Total   161,362
     
Net assets acquired   362,504
     
Fair value of consideration transferred   481,435
     
Goodwill   118,931
(1)Includes R$28,853 related to contingent liabilities recognized in the business combination.
Due to the pandemic, the Company has incurred in direct expenditures, such as transportation, personnel, prevention, control and donations, which are presented in the consolidated statement of income (loss) within the following line items:

Due to the pandemic, the Company has incurred in direct expenditures, such as transportation, personnel, prevention, control and donations, which are presented in the consolidated statement of income (loss) within the following line items:

         
    12.31.21   12.31.20
Cost of sales (1)    (185,994)    (356,960)
Selling expenses   (18,234)   (56,307)
General and administrative expenses   (84,623)   (86,032)
Total expense    (288,851)    (499,299)
(1)In the year ended December 31, 2020, includes non-incremental expenditures related do idleness in the amount of R$55,926.
The main differences between these consolidated financial statements and those filed with the CVM, resulting from this event, are disclosed below.

The Company is subject to the reporting requirements established by the Brazilian Corporation Law and the regulations of the Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários, or “CVM”). The liability of this class action lawsuit was not recognized in the financial statements filed with the CVM for the year ended on December 31, 2019, which were filed on March 3, 2020. Therefore, the class action lawsuit was recognized in the financial statements filed with the CVM for the year ended on December 31, 2020. The main differences between these consolidated financial statements and those filed with the CVM, resulting from this event, are disclosed below.

                             
    As filed with the CVM   Adjustment for class action settlement   As filed with the SEC   Corresponding notes
    12.31.20   12.31.19   12.31.20   12.31.19   12.31.20   12.31.19   12.31.21
Statement of income (loss)                            
Other operating income (expenses), net          (254,178)         428,820      204,436     (204,436)            (49,742)          224,384    24 and 26 
Income taxes           242,271         125,887      (69,508)        69,508           172,763          195,395    10 
Net income from continuing operations         1,390,069      1,213,261      134,928     (134,928)         1,524,997       1,078,333    22 
                             
Statement of Financial Position                            
Other current liabilities           814,638         512,591                 -      204,436           814,638          717,027    - 
Deferred income taxes         2,109,064      1,845,862                 -        69,508         2,109,064       1,915,370    - 
Accumulated losses       (2,594,028)     (3,996,985)                 -     (134,928)       (2,594,028)     (4,131,913)    - 
Total assets and total liabilities and equity       49,664,906     41,700,631                 -        69,508       49,664,906     41,770,139   -