Marfrig Global Foods (MBRF3) Q1 2026 earnings summary

Executive summary

• Net sales reached BRL 3.49 billion in Q1, up 6.9% year-over-year, 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 and poultry demand persisted in both domestic and export markets, with notable growth in exports to China and the Middle East.

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.

• Inventory and biological assets consumed BRL 1.1 billion in working capital, mainly due to export focus and feedlot expansion.

• CapEx for Q1 was BRL 1.2 billion, with full-year guidance around BRL 5 billion.

• 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 improve over last year, with margins anticipated to be no worse than the prior year.

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

• Inventory levels are expected to normalize by year-end, gradually releasing working capital.

• No major supply/demand imbalances are forecast for poultry; 2026 supply growth is projected at 2%.

• CapEx will accelerate in Q2, with investments adjusted based on cash generation.