MBRF expands halal supply agreements
Net income declines sharply as costs and currency pressures weigh on earnings
MIDDLE EAST – MBRF Global Foods Company has expanded its presence in the Middle East halal market while reporting a decline in profitability for the 2025 financial year despite recording higher revenue and sales volumes.
The company said it had extended its supply agreement with Saudi Agricultural and Livestock Investment Company, increasing poultry shipments to as much as 600,000 tons annually while introducing beef exports of up to 270,000 tons per year.
It added that it had completed the authorization phase for a joint venture with Halal Products Development Company to establish Sadia Halal, a new entity valued at US$2.07 billion with EBITDA of US$230 million and plans for a potential public listing starting in 2027.
These developments come as the group continues to position itself within the global halal protein market while aligning its long term strategy around diversified protein production.
Financial performance
Earlier results released on March 18, 2026, showed that MBRF generated net revenue of about US$32.8 billion, reflecting a 12% increase compared to 2024, driven by stronger pricing and higher volumes.
Total sales volumes reached 8.2 million tons, representing a 4% rise, with domestic markets accounting for 5.36 million tons, up 5.5%, while exports increased marginally by 1% to 2.86 million tons.
Adjusted EBITDA came in at approximately US$2.63 billion with a margin of 8.0%, marking a 3.2% decline from the previous year as operating conditions became more challenging.
Net income attributable to controlling shareholders dropped 77.9% to around US$71.6 million due to higher financial expenses, exchange rate effects, and one off items recorded during the period.
Operating cash flow reached about US$2.62 billion, while leverage stood at 3.30 times net debt to EBITDA in local currency and 3.35 times in US dollars, alongside shareholder payouts totaling roughly US$755 million.
Capital expenditure and acquisitions ranged between US$1.05 billion and US$1.26 billion, covering automation upgrades, capacity expansion, and investments including a processed foods facility in China and a stake in a poultry operation in Saudi Arabia.
Segment and operations overview
The poultry focused BRF division reported revenue of approximately US$12.94 billion, rising 5.8%, with volumes increasing 4.3% to 5.2 million tons and EBITDA reaching about US$2.08 billion at a margin of 16.1%.
In North America, beef operations recorded revenue of US$13.8 billion, up 11.8%, although volumes declined 2.3% to 1.94 million tons due to limited cattle supply, with EBITDA at US$133 million and a margin of 1.0%.
South American beef operations generated around US$4.44 billion in revenue, a 20.1% increase, as volumes rose 14.6% to 1.09 million tons and EBITDA totaled about US$440 million.
The company reported efficiency gains of roughly US$200 million from internal initiatives while maintaining more than 35 production facilities, serving over 425,000 customers, and employing more than 130,000 people globally.
On sustainability metrics, MBRF said it had achieved full monitoring of cattle suppliers in Brazil, maintained top ratings from CDP across climate, water, and forests, and reached 80% renewable energy use overall, including full reliance on renewable energy within Brazil.
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