Marfrig Global Foods (MBRF3) Q3 2024 earnings summary

Executive summary

• Consolidated net revenue reached R$37.7 billion in Q3 2024, up 12.4% year-over-year, driven by strong performance across all segments and geographies.

• Adjusted consolidated EBITDA was R$3.9 billion, a 60.4% increase from Q3 2023, with a margin of 10.3%.

• Net income was R$79.1 million, reversing a loss of R$112 million in the same quarter last year.

• Free cash flow was positive at R$1.4 billion.

• Interim dividends of R$2.5 billion were approved, yielding over 17%.

Financial highlights

• Gross profit increased 43% to R$5.3 billion; gross margin improved to 14.1% from 11.1% in 3Q23.

• Adjusted EBITDA margin improved by 307 basis points year-over-year to 10.3%.

• Net debt stood at R$38.9 billion at quarter-end, with leverage ratio improved to 3.0x net debt/adjusted EBITDA in reais and 2.86x in USD.

• CapEx investments totaled R$942 million; financial expenses were R$1.3–1.45 billion.

• 76% of revenue was in USD or other foreign currencies.

Outlook and guidance

• Q4 expected to be in line with previous quarters, with continued cash generation and robust results.

• Optimism for 2025, with strategies focused on value-added products, productivity, and efficiency.

• Integration with BRF and international expansion of Sadia beef products set for January 2025.

• Commitment to full supply chain traceability by end of 2025 under the Verde+ program.

• Cattle supplies in North America expected to decline cyclically in 2025, with margins at the low end of the range.