What I can say is that as to grain, yes, we are likely to have another reduction effect that is going to be reflected in the fourth quarter of the year. And we are also confident with the captures from the efficiency program that we have BRF plus. So we can expect a similar behavior before the end of the year. Your second question was about the cash flow. You talked about nonrecurring events and financial expenses. I would say that there is one factor that would affect the financial expenses, but does not affect the free cash flow, which is the rebuy of the tender offer of 2026 note, we bought up to $200 million with a discount. So we were able to account for a premium of approximately BRL 50 million. And we can say that this is a nonrecurring effect.
But again, it affected the financial expense line in a positive way in terms of financial revenues. But that does not impact the free cash flow because this is regarded data amortization, it was a lower amortization where we redeemed the bond. Generally speaking, some of the elements that we could discuss related to the current , we continue reducing the inventory of finished product. And this cannot be seen in the inventory because we reached the level of commemorative product inventory, and this is going to be used in the sales in November and December, which is typically what happens in this period of the year. And also due to the off-season harvest, we replenished the grain inventory, especially corn for the quarter. So that would help us explain why we are sure, we have confidence that in the third fourth quarter, we are going to generate cash.
We had a very strong third quarter. And this is also going to impact the generation of cash also in this line. I hope I addressed all the aspects of your question.
Gustavo Troyano: Yes, everything is so clear. Thank you, Fabio.
Operator: Our next question comes from Leonardo Alankar with XP.
Leonardo Alankar: I would like to ask a question as a follow-up so that we can understand if there is a higher position in the position of grains and also the expectation for the consumption of Christmas products and also if there is an expectation that the international performance will improve. And if the net result would be an improvement in the working capital, just to confirm what we have already discussed. The variable volumes tracked mutation because I look at the volume record as the expectations of what happened in the past. And we can see the margins continue to be low. The increase for the next years, Brazil has a margin of 11.9%, which is a very positive surprise and processed performing better than in Ignacio or — So what are we going to see in terms of performance?
Is it going to sacrifice international performance? So I would like you to give us a breakdown in terms of volume and what’s the space for next quarter? I asked this because when we look at sectorial data, we can see there was a drop of some areas. It seems that the market is leaner. So it seems that the market made adjustments to the offer. So we see a positive dynamic. I would like to see that if your trend is different from that, that we see in the market and how do you compare to the peers so that we can understand the whole situation?
Miguel Gularte: Leonardo I will take your questions, starting by the second part and then turn it over to Fabio, who will finish taking the other parts. I think it’s important to have or to keep in mind that we use a predictive model, both in terms of origination and the commercial side as well that’s very fine-tuned. So we worked in such a way that we would go into the market to purchase grain at the right moment. We understand that, that’s working capital intensive, but we recovered that with our ultimate results. On the other hand, it’s also important to point out something that you’ve said. And in this case, we add more explicit color, so to speak, BRF was the first company to have posting in the U.K. This was for a very important unit of ours.
And we went back to that market, a market BRF has been absent of since 2017 or 2018, which is very exciting for us right now. Now another thing that you also mentioned, which I think is important to quantify because it’s a very important aspect. BRF operated very interesting work when it comes to production, BRF had a very important work in terms of going for commercial assets. Now these assets include these 50 new licenses that we’ve acquired, 19 of which were secured in the second half of 2023 alone. This is a project we have been working on and will continue to work on to obtain new licenses. These new licensed plants are being working on. And they will serve not only to improve our capillarity, but also to enable us to offer larger volumes.
Now on the other hand, something that we’ve talked about in the last conferences, BRF has attempted to and have been managing to produce to sell and not sell to produce, which allows us in such a way to arbitrate and choose the best choices, which ultimately allows BRF to grow and take the lead again when it comes to efforts. Last year and at the beginning of this year, this is something we worked toward and already getting ahead of myself and answering part of what Fabio will say, it is likely that this continued growth will be seen again in 2024 and also in the following years. Now Fabio, if you could please go ahead.
Fabio Mariano: Now, Leonardo, I could tell you about your question with regards to what you should expect from or in terms of the net results, I will list a few factors, but overall, we expect the net results to be positive. Considering the sales of commemorative products, that’s the first part. What we will see as a normalized inventory in our portfolio, which should take place in the last 2 months of the year, as I’ve said before, from the grain perspective, I can say that we are at a very coin a very comfortable position from a supply standpoint. So we’ll continue to measure whether the market is offering as much as it has, but we do not have the chance to originate if conditions are not attractive in our opinion. And the most substantial part of this half of the year, as we’ve said before, is in the unfinished inventories in our international operations.
So we’ve identified an opportunity without any interference with the levels of service to maintain an inventory of at least 30 million to 35 million tons less, which if you consider a cost of BRL 10 Bikila, could represent as much as $350 million now that prices are picking up, and Miguel mentioned this at the beginning, we are gaining confidence to add that volume to our commercial operation. To some extent, this has already begun in early November. And if everything conspire positively, we’ll continue to do that moving forward until the end of the month.
Leonardo Alankar: Very clear. Now just other clarifications about BRF. If you had more pages detailing that, that would be great. But thank you so much for the answer so far. Thank you.
Operator: Our next question comes from Isabella Simonato with Bank of America.
