M. Dias Branco (MDIA3) Q3 2025 earnings summary

Executive summary

• Net revenue reached R$2.8 billion in 3Q25, up 16% year-over-year, with volume growth of 15% and EBITDA of R$318 million, a 39% increase year-over-year, and net income up 73% to R$216 million, marking the third consecutive quarter of revenue growth.

• Cash generation was R$530 million, eight times higher than the same quarter last year, supporting a net cash position of R$721 million and a strong long-term debt profile.

• All four business units showed consistent quarter-over-quarter growth, with market share gains in both cookies and pasta categories.

• ESG initiatives advanced, including waste reduction, water efficiency, increased women in leadership, and the company maintained a AAA Fitch rating for the eighth consecutive year.

• Achieved the Anefac Transparency Trophy for the eighth time and Great Place to Work certification for the third year.

Financial highlights

• Year-to-date net revenue was R$7.7 billion, up 8% year-over-year, with volume growth and improved market share.

• EBITDA margin for the quarter was 11.4%, with gross margin at 32.4%, slightly down due to higher palm oil prices.

• Cash generation in the quarter was R$530 million, 8x higher than 3Q24, driven by EBITDA growth and working capital release.

• SG&A expenses increased due to higher sales volume and greater marketing investment.

• Net cash position at quarter-end was R$721 million, with 68.6% of debt long-term and total debt at R$1.87 billion.

Outlook and guidance

• Cost reductions in wheat are expected to further lower input costs in the next quarter, though the effect is delayed due to inventory cycles.

• Focus remains on profitable growth, efficiency, productivity, and international expansion.

• SG&A as a percentage of revenue is targeted at 20%, with some short-term fluctuation possible due to revenue changes.

• The company expects continued volume recovery and market share gains, with a focus on maintaining rational pricing aligned with market trends.