Marfrig Global Foods (MBRF3) Q1 2025 earnings summary

Executive summary

• Consolidated net revenue reached R$38.6 billion in 1Q25, up 27% year-over-year, driven by strong South America and BRF performance, offsetting North America headwinds.

• Adjusted EBITDA was R$3.2 billion, up 20.8% from 1Q24, with margin at 8.3%.

• Net income attributable to controlling shareholders was R$88 million, a 40% increase year-over-year, reversing a net loss in 1Q24.

• Free cash flow was R$182 million, a significant improvement from negative R$740 million in 1Q24.

• Strategic focus on high value-added products, integration with BRF, and supply chain strengthening supported results.

Financial highlights

• Net revenue: R$38.6 billion (+27% YoY); Adjusted EBITDA: R$3.2 billion (+20.8% YoY), margin 8.3%.

• Net income attributable to controlling shareholders: R$88 million (+40% YoY).

• Gross profit: R$4.64 billion (+21% YoY), gross margin 12%.

• SG&A expenses: R$3.39 billion (8.78% of revenue, -100 bps YoY).

• Capex: R$1.43 billion in 1Q25.

Outlook and guidance

• Management will maintain focus on value creation, operational excellence, and sustainable operations in 2025.

• Ongoing integration with BRF and portfolio optimization in South America expected to drive further operational gains.

• Lower fed cattle supplies are expected to reduce capacity utilization in North America for the remainder of 2025, but robust beef demand is anticipated to continue seasonally.