By Brazil Stock Guide – Marfrig Global Foods SA (MBRF3; MBRFY) reported a sharp drop in third-quarter profit as weaker performance at its poultry unit offset revenue growth across its global operations.
The company posted consolidated net income attributable to controlling shareholders of 94 million reais, down 62% from a year earlier.
Net revenue rose 9.2% year-on-year to 41.8 billion reais, supported by growth across all segments, while adjusted EBITDA totaled 3.5 billion reais, declining 8.6% compared with the same period in 2024.
The decline was largely driven by BRF, the processed foods and poultry business, which faced temporary export restrictions linked to avian influenza. The segment posted a 14.9% drop in adjusted EBITDA, compressing margins despite steady demand.
By contrast, South American beef operations delivered strong gains. Revenue in the region increased 18.1% to 5.7 billion reais, while adjusted EBITDA surged 31.8% to 628 million reais, reflecting higher volumes and improved pricing.
In North America, revenue climbed 12.2% to $3.6 billion, driven by higher average selling prices, even as volumes declined due to reduced cattle supply. Margins remained under pressure as input costs rose.
The company’s consolidated gross margin narrowed to 12.3% from 13.9% a year earlier, while adjusted EBITDA margin fell to 8.4%.
Operating cash flow remained robust at 3.3 billion reais, supporting a free cash flow of 555 million reais in the quarter.
Marfrig also highlighted strategic moves to expand its global footprint, including the creation of Sadia Halal, a joint venture focused on the Middle East. The transaction, valued at $2.07 billion, is expected to support future growth and could lead to a potential IPO in Saudi Arabia.
Leverage stood at 3.09 times net debt to EBITDA, with net debt totaling 41.3 billion reais at the end of September.
The company said it continued to advance operational integration following the formation of MBRF, emphasizing efficiency gains and synergies across its diversified protein platform.