Marfrig Global Foods (MBRF3) Q1 2025 earnings summary

Executive summary

• Consolidated net revenue for Q1 2025 reached R$38.6 billion, up 27% year-over-year, with adjusted EBITDA at R$3.2 billion and an 8.3% margin, up 20.8% year-over-year.

• Net income attributable to shareholders was R$88 million, reversing a net loss in Q1 2024 and up 40% year-over-year.

• Free cash flow improved to R$182 million, a R$740 million increase year-over-year.

• South America Division and BRF achieved record operational and financial results, offsetting North America headwinds.

• The company announced a proposed merger with BRF to form MBRF Global Foods, aiming for significant synergies, scale, and global reach.

Financial highlights

• North America net sales were US$3.3 billion, up 15.4% year-over-year, with sales volume up 5.2%.

• South America operations saw net revenue of R$4.08 billion, up 35.2% year-over-year, and adjusted EBITDA of R$453 million, up 56%.

• BRF contributed 85% of Q1 adjusted managerial EBITDA, South America 14%, and North America 1%.

• Consolidated net debt at Q1 end was R$38.1 billion, a 2% reduction from Q4, with leverage at 2.69x, the seventh consecutive quarter of deleveraging.

• Dividend distributions in 2024 totaled R$2.5 billion (Marfrig) and R$1.1 billion (BRF interest on equity).

Outlook and guidance

• Lower fed cattle supplies in North America are expected to reduce industry capacity utilization for the remainder of 2025.

• The merger is expected to unlock R$805 million in annual synergies, with R$400–500 million in the first 12 months and the remainder in the medium to long term.

• Tax optimization is projected to generate R$3 billion in net present value.

• Management will maintain focus on value creation, financial integrity, and sustainable operations in 2025.

• Ongoing integration with BRF and portfolio optimization in South America expected to drive further operational gains.