Marfrig Global Foods (MBRF3) Q2 2025 earnings summary

Executive summary

• Consolidated net revenue reached R$37.8 billion in 2Q25, up 8.6% year-over-year, driven by South America and BRF segments.

• Adjusted EBITDA was R$3.0 billion (8.0% margin), down 10.8% from 2Q24, with net income of R$85 million, a 13% increase year-over-year.

• Operating cash flow was R$3.0 billion, up 17% year-over-year, and financial leverage improved to 2.71x from 3.38x in 2Q24.

• Shareholders approved the merger with BRF, forming MBRF, with completion expected by September 2025.

• Strong focus on operational excellence, cost control, and sustainability, including 100% monitoring of direct suppliers.

Financial highlights

• Gross profit for 2Q25 was R$4.7 billion, with a gross margin of 12.6%, down from 14.0% in 2Q24.

• Free cash flow was R$272 million after R$1.4 billion CapEx and similar financial expenses.

• Net debt ended at R$37.6 billion, down 1.4% sequentially, with leverage at 2.71x net debt/EBITDA.

• Capex in 2Q25 was R$1.4 billion, mainly for maintenance and investments in cattle operations.

• Dividend distributions increased, with R$141 million in 2Q25 and BRF paying R$1.1 billion in 2024.

Outlook and guidance

• Management expects to capture BRL 800 million in mapped synergies from the BRF merger and create value.

• Focus remains on operational excellence, financial discipline, and potential U.S. listing to improve multiples and lower cost of capital.

• South America expects 30% production growth in 2025, with positive seasonality and margin improvement in H2.

• Continued commitment to ESG, with 100% of direct suppliers monitored and high coverage of indirect suppliers in Amazon and Cerrado.

• Forward-looking statements highlight expectations for continued operational improvements and integration benefits.