Marfrig Global Foods (MBRF3) Q3 2024 earnings summary

Executive summary

• Consolidated net revenue reached R$37.7 billion in 3Q24, up 12.4% year-over-year, driven by strong performances in BRF and South America.

• Adjusted EBITDA rose 60.4% to R$3.9 billion, with a margin of 10.3%, reflecting operational improvements and diversification.

• Net income attributable to shareholders was R$79.1 million, reversing a loss in 3Q23.

• Free cash flow was positive at R$1.4 billion.

• Asset sales in South America completed, generating R$5.7 billion to R$7.2 billion in proceeds, supporting deleveraging.

Financial highlights

• Gross profit increased to R$5.3 billion, with a gross margin of 14.1% (up 3.0 p.p. year-over-year).

• Adjusted EBITDA margin improved to 10.3%, up 307 bps year-over-year.

• Net debt/Adj. EBITDA improved to 3.0x (BRL) and 2.86x (USD), with net debt at R$38.9 billion.

• Operating cash flow was R$3.7 billion; capex totaled R$942 million.

• 76% of revenue was in USD or other foreign currencies.

Outlook and guidance

• Management expects continued benefits from BRF integration, asset optimization, and focus on higher-value products.

• Q4 expected to be in line with previous quarters, with ongoing cash generation and robust results.

• 2025 outlook for North America expects margins at the low end of the cyclical range due to declining cattle supplies.

• Commitment to full supply chain traceability by end of 2025 under ESG initiatives.