Marfrig Global Foods (MBRF3) Q1 2026 earnings summary

Executive summary

• Net sales rose 6.9% year-over-year to BRL 3.49 billion, despite a 5.8% decline in sales volume due to tight cattle supplies and extended feeding periods.

• Achieved net income of R$111 million, up 26.8% year-over-year, with net revenue of R$39.5 billion and adjusted EBITDA of R$3.1 billion, reflecting robust performance and disciplined execution across all segments.

• Strategic investments in China and the Middle East, including the acquisition of the Henan plant and creation of Sadia Halal, are expected to drive sustainable growth and global competitiveness.

• Integration of Marfrig and BRF operations advanced, capturing R$126 million in synergies and progressing on the MBRF+ efficiency program with R$296 million in savings.

• Strong beef demand persisted even with record retail prices, and the company expects continued robust demand as the cattle cycle progresses.

Financial highlights

• Net revenue was R$39,453 million, down 0.1% year-over-year, with 46% from North America, 16% from South America, and 38% from BRF.

• Adjusted EBITDA reached R$3,096 million (7.8% margin), down 3.2% year-over-year, mainly due to BRF seasonality.

• U.S. Kansas live cattle prices averaged $238.60/cwt, up 17.9% year-over-year; USDA cutout averaged $371.56/cwt, up 14.4%.

• Inventory and biological assets consumed BRL 1.1 billion in working capital, mainly due to inventory buildup for exports and increased feedlot volumes.

• Free cash flow was negative R$1,262 million, reflecting seasonal working capital consumption and inventory build-up.

Outlook and guidance

• Management expects Q2 results to surpass those of the previous year, with confidence that margins will be no worse than last year.

• Management expects investments in new geographies and integration synergies to yield increasing returns throughout 2026.

• Inventory levels are expected to gradually decrease over the year, releasing working capital.

• CapEx for 2026 is projected at around BRL 5 billion, with acceleration expected in Q2.

• No major grain supply concerns for 2026; cost pressures from logistics in the Middle East are being offset by price increases.