Brazil’s FriGol is reporting US$197.3M revenue in Q2 FY25

BRAZIL – FriGol, one of Brazil’s major beef processors, has posted gross revenue of US$197.3 million (R$1 billion) in the second quarter of 2025, reflecting a 25 percent increase compared to the same quarter last year.

Net revenue reached US$194.2 million (R$984.1 million), also a 25 percent increase year-on-year, while earnings before interest, taxes, depreciation and amortization (EBITDA) totaled US$30.9 million (R$154.1 million), a 234.6 percent jump with a margin of 15.7 percent.

Net profit came in at US$17.4 million (R$86.6 million), a significant rise from the US$340,000 (R$1.7 million) recorded during the same period in 2024.

According to Chief Executive Officer Luciano Pascon, stronger prices in overseas markets, especially China, along with a strategy to diversify export destinations, contributed to the quarter’s performance.

International sales accounted for 56.3 percent of revenue, up 4.7 percentage points from last year, with China still the leading buyer though its share dropped from 81 to 77 percent.

Israel’s share slipped from 7 to 6 percent and Hong Kong’s from 3 to 2 percent, while other destinations expanded from 9 to 15 percent.

The company highlighted increases in shipments to the European Union, Canada, Chile, Saudi Arabia and Southeast Asian markets such as Indonesia, the Philippines and Singapore.

Even with the export gains, Chief Financial Officer and Sustainability Director Carlos Corrêa noted that higher cattle prices, which rose around 40 percent from the same quarter last year, and tighter livestock supply limited results.

FriGol processed 155,000 head of cattle in the period, 8 percent fewer than in the second quarter of 2024.

Domestically, which represented 43.7 percent of revenue, weaker demand and rising cattle costs squeezed margins, but sales of higher-value brands including Chef, Angus, BBQ Secrets and Açougue Completo increased by 5.8 percent.

Financial position

By the end of June 2025, FriGol’s net debt-to-EBITDA ratio stood at 1.5 times compared with 1.2 times at the close of 2024, which the company attributed to higher working capital needs.

Accounts receivable rose by US$25.4 million (R$128.8 million) and inventories by US$3.9 million (R$20 million), while supplier liabilities fell by US$10.4 million (R$52.9 million).

The financing gap of US$39.8 million (R$201.7 million) led to a US$10.3 million (R$52.3 million) increase in gross debt and a US$30.2 million (R$152.9 million) drawdown of cash, leaving FriGol with US$40.2 million (R$206.8 million) in cash at the end of the quarter.

The company also recognized tax credits of US$3.9 million (R$19.9 million) from 2025 and US$18 million (R$92.5 million) in credits from previous periods, which boosted EBITDA and net income.

At the same time, provisions related to PIS and COFINS levies reduced quarterly results by US$5.7 million (R$28.7 million), although no equity impact was recorded under CPC rules.

Half-year performance

For the first half of 2025, gross revenue reached US$414 million (R$2.1 billion), up 21 percent from the same period last year, while net revenue totaled US$394.8 million (R$2.0 billion), a 22 percent gain.

EBITDA for the half-year was US$32.4 million (R$164 million), up 140 percent year-on-year, and net profit stood at US$17.3 million (R$87.6 million) compared with a US$650,000 (R$3.3 million) loss in 2024.

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