Marfrig Global Foods (MBRF3) Q2 2025 earnings summary

Executive summary

• Consolidated net revenue reached R$37.8 billion in Q2 2025, up 8.6% year-over-year, with net income of R$85 million, a 13% increase from Q2 2024.

• Adjusted EBITDA was R$3.0 billion (8% margin), down 10.8% year-over-year, and operating cash flow rose 17% to R$3.0 billion.

• Shareholders approved the merger with BRF, forming MBRF, with completion expected by September 2025.

• Focus remains on capturing mapped synergies, operational excellence, and sustainability, including 100% monitoring of direct suppliers.

• Diversification in proteins, geography, and value-added portfolio contributed to shareholder value.

Financial highlights

• Net revenue was R$37.8 billion, with free cash flow at R$272 million after R$1.4 billion CapEx.

• Net debt ended at R$37.6 billion, down 1.4% sequentially, with leverage at 2.71x net debt/EBITDA.

• BRF paid R$1.1 billion in dividends in 2024; Marfrig paid R$2.5 billion over five years.

• Gross profit was R$4.7 billion, with a gross margin of 12.6%, down 141 bps year-over-year.

• Revenue currency mix: 74% USD, 24% BRL, 2% other currencies.

Outlook and guidance

• Merger with BRF expected to close by end of Q3 2025, with ticker unification on B3.

• Management expects to capture BRL 800 million in mapped synergies and create value post-merger.

• Tight cattle supplies in North America expected to persist, supporting high beef prices but limiting capacity utilization.

• South America expects 30% production growth in 2025, with positive seasonality and margin improvement in H2.

• Focus on financial discipline and potential U.S. listing to improve multiples and lower cost of capital.