MBRF posts US$7.7B revenue, US$645M core earnings despite profit drop
Brazilian food processor reports record sales volumes after Marfrig-BRF merger
BRAZIL – Brazilian food processing company MBRF reported quarterly results that exceeded analysts’ expectations for net revenue and core earnings, marking its first results as a combined entity after Marfrig acquired poultry and pork producer BRF.
The company posted a net profit of US$17.4 million for the July-September period, representing a 62% decline compared with the same quarter last year due to export restrictions on Brazilian poultry following a bird flu outbreak in May.
China, Brazil’s largest poultry importer, only resumed purchases of Brazilian chicken in November, which affected the company’s sales earlier in the quarter.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached US$645 million, down 8.6% from the previous year but above the US$588 million forecasted by analysts in a poll conducted by LSEG.
MBRF’s net revenue climbed 9.2% year-on-year to US$7.7 billion, surpassing the US$7.6 billion analysts had projected.
The company recorded a quarterly sales volume of 2.1 million metric tons across its beef operations in North and South America, a 3.7% increase compared with the same period in 2024.
In October, MBRF entered a US$2.07 billion investment agreement with Saudi Arabia’s Halal Products Development Company (HPDC) to expand its presence in the Middle East and announced plans to list the venture on the Riyadh Stock Exchange in 2027.
Following the announcement, MBRF shares rose 9.25%, trading at US$2.90 per share by late morning on Monday.
According to filings, MBRF will contribute assets valued at US$2.07 billion to the joint venture, including production and distribution facilities across Saudi Arabia, Qatar, the United Arab Emirates, Kuwait, and Oman.
Under the partnership structure, HPDC, fully owned by Saudi Arabia’s Public Investment Fund, will initially acquire a 10% stake in BRF Arabia, the investment vehicle managing the operations, with plans to raise it to 30% and an option to reach 40% under certain conditions.
Genial Investimentos analyst Igor Guedes said the deal provides MBRF with immediate capital and potential future funding through the 2027 IPO, which could help reduce the company’s debt.
Bank of America described the transaction as supportive of MBRF’s growth in the region, while maintaining a neutral rating on the stock due to challenges in the U.S. beef market, flattening margins in poultry and pork, and the company’s high leverage..
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