MBRF Global Foods Company (MBRF3) Q1 2026 earnings summary

Executive summary

• Net revenue was R$39,453 million, nearly flat year-over-year, with adjusted EBITDA of R$3,096 million and net income rising to R$111 million, reflecting robust performance and disciplined execution across all segments.

• Strong global protein demand persisted, with record export volumes, especially during Ramadan, and notable growth in exports to China and the Middle East.

• Strategic investments in China and the Middle East, including the Sadia Halal transaction and Henan plant acquisition, 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.

• Inventory build-up, especially at BRF, was driven by a focus on exports and geopolitical disruptions in the Middle East, impacting working capital.

Financial highlights

• Net revenue was R$39,453 million, almost unchanged 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.

• Net income increased to R$111 million, up 26.8% year-over-year.

• Operating cash flow was R$1,451 million; free cash flow was negative at R$1,262 million, reflecting seasonal working capital consumption and inventory build-up.

• Net leverage stood at 3.37x, with net debt of R$43,967 million, up 1.2% sequentially.

Outlook and guidance

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

• Early signs of recovery in North America and continued strong global protein demand support a positive outlook for the year.

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

• Strategy focuses on capacity expansion, productivity gains, and enhanced local presence.

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