BRF (BRFS3) Q2 2025 earnings summary

Executive summary

• Announced merger with Marfrig to form MBRF, creating a global food leader with R$152 billion in consolidated revenue and 38% of sales from high value-added products.

• Achieved record first-half EBITDA of R$5.3 billion and net income of R$1.9 billion, reflecting operational excellence and financial discipline despite export restrictions from avian flu.

• Maintained strong brand performance, market share gains, and operational efficiency in Brazil and international markets.

• BRF+ efficiency program delivered R$208 million in additional savings in 2Q25.

• Focused on ESG progress, internal leadership development, and innovation.

Financial highlights

• Net revenue in Q2 2025 reached R$15.4 billion, up 2.9% year-over-year; gross profit was R$4.1 billion, up 4.2%.

• Adjusted EBITDA was R$2.5 billion (16.3% margin), down 4.5% year-over-year; net income was R$735 million, down 32.8%.

• Free cash flow was R$842 million, with net leverage at a historic low of 0.43x.

• Net debt reduced to R$4.7 billion, a 47% reduction year-over-year, with average debt maturity of 8.2 years.

• R$1,081 million invested in capex in Q2 2025, focused on growth, efficiency, and support.

Outlook and guidance

• Optimism for sustainable growth driven by strategy, innovation, and operational excellence.

• Focus on synergy capture and efficiency post-merger, with continued investment in brands and market expansion.

• Expectation of cost reduction in animal feed by 2% in H2 2025, benefiting from lower grain prices.

• Anticipate gradual margin improvement in Brazil due to lower CPV and potential for further price adjustments.

• Inventory normalization expected as export markets, particularly China and Europe, reopen.