MBRF Global Foods Company (MBRF3) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 sales volume, with net revenue of R$40.7 billion, up 4.9% year-over-year, and adjusted EBITDA of R$3.2 billion, up 5.4% with a 7.9% margin.

• Net income reached R$69 million, demonstrating resilience amid high interest rates, currency appreciation, and challenging macroeconomic conditions.

• Integration synergies from the merger and efficiency programs delivered R$158 million in synergies and R$328 million in operational savings.

• BRF and South America Beef operations were key EBITDA contributors, while North America Beef faced margin pressure from higher cattle costs.

• Sadia Halal achieved record profitability and reinforced brand leadership in core markets.

Financial highlights

• Consolidated net revenue: R$40.7 billion (+4.9% YoY); adjusted EBITDA: R$3.2 billion (+5.4% YoY); net income: R$69 million.

• Gross margin: 12.0% (-45 bps YoY); adjusted EBITDA margin: 7.9% (+3 bps YoY).

• Operating cash flow: R$2.17 billion; capex: R$1.41 billion; free cash flow: -R$864 million.

• Net debt: R$45.0 billion (+2.4% QoQ); leverage at 3.41x LTM EBITDA.

• 72% of revenue in USD; US accounted for 45% of sales, Brazil 23%.

Outlook and guidance

• Expectation for improved cash conversion and normalization of working capital in the second half of the year.

• Continued focus on operational efficiency, integration, and capturing growth in strategic markets, with 47% of targeted annual synergies already achieved.

• Expansion of value-added product portfolio and international presence, especially in halal and premium segments.

• CapEx for 2026 projected at R$5 billion, with a target to reduce to R$3.5–4 billion in 2027.

• Sadia Halal IPO preparations underway, expected to further strengthen capital structure.