BRF (BRFS3) Q1 2025 earnings summary

Executive summary

• Net income reached R$1.2 billion in 1Q25, doubling year-over-year, with net revenue up 16% to R$15.5 billion and adjusted EBITDA up 30% to R$2.8 billion, marking a record first quarter.

• Free cash flow rose to R$1.3 billion, or R$1.8 billion excluding the Addoha acquisition, and net leverage dropped to a historic low of 0.54x, supporting continued investment and financial discipline.

• Operational efficiency gains from the BRF+ program delivered R$305 million in savings, with strong brand performance and market diversification in Brazil and international markets.

• Strategic investments included acquisitions in China and Saudi Arabia, a new processing plant in Jeddah, and new export permits, reinforcing value-added product growth and regional leadership.

• Employee engagement reached 89%, and ESG achievements included top rankings in animal welfare and sustainability indices.

Financial highlights

• Net revenue grew 16% year-over-year to R$15.5 billion; net income doubled to R$1.2 billion; adjusted EBITDA reached R$2.8 billion, up 30%; free cash flow was R$1.3 billion, up 52% year-over-year.

• Gross margin improved to 26.1% (up 2.0 p.p. YoY); EBITDA margin rose to 17.7% (up 1.9 p.p. YoY); net margin at 7.6%.

• Net debt reduced to R$5.98 billion (down 33.7% YoY); leverage at 0.54x, lowest in company history.

• Operating cash flow reached R$3.6 billion, investment flow of R$1.5 billion; average debt maturity was 8.1 years.

• Financial expenses decreased 14.9% year-over-year; Fitch upgraded credit outlook to positive.

Outlook and guidance

• Management remains confident in continued growth, supported by operational efficiency, innovation, and global expansion.

• Strategic investments in new plants and acquisitions are expected to further strengthen market position and value-added product offerings.

• Anticipate additional 3%-5% growth as new facilities reach maturity.

• Domestic demand and pricing remain strong and stable into Q2 2025.

• Export markets show stable volumes and prices, with no significant tariff impacts observed.