M. Dias Branco (MDIA3) Q3 2025 earnings summary

Executive summary

• Net revenue reached R$2.8 billion in 3Q25, up 16% year-over-year, with net income rising 73% to R$216 million and EBITDA up 39% to R$318 million; this marked the third consecutive quarter of revenue growth, driven by higher sales volume and operational initiatives.

• Cash generation was R$530 million in 3Q25, eight times higher than 3Q24, supporting a net cash position of R$721 million at quarter-end.

• All core and adjacent product segments (cookies, crackers, pasta, margarine, wheat, cakes, snacks, healthy products) posted double-digit revenue growth year-over-year.

• Market share gains were achieved in both cookies and pasta, with international expansion in Uruguay and new product launches.

• ESG initiatives advanced, including waste reduction, water efficiency, diversity improvements, and the company maintained a AAA Fitch rating and received the Anefac Transparency Trophy for the eighth consecutive year.

Financial highlights

• Net revenue for 9M25 totaled R$7.7 billion, up 8% year-over-year, with volume growth and improved market share.

• EBITDA margin for 3Q25 was 11.4%, with gross margin at 32.4%, slightly down year-over-year due to higher palm oil prices.

• Net income for 9M25 was R$501.9 million, up 6.9% year-over-year.

• Cash and cash equivalents at quarter-end were R$2.5 billion, with net cash of R$721 million and total debt of R$1.87 billion, 68.6% of which is long-term.

• SG&A expenses rose 11.5% year-over-year to R$616.1 million, reflecting higher sales and increased marketing investments.

Outlook and guidance

• Management expects continued volume recovery and market share gains, with a focus on profitable growth, efficiency, productivity, and international expansion.

• Cost reductions in wheat are expected to further lower input costs in the next quarter, though the effect is delayed due to inventory cycles.

• SG&A as a percentage of revenue is targeted at 20%, with some short-term fluctuation possible due to revenue changes.