By Brazil Stock Guide — MBRF (B3: MBRF3), the Brazilian food group created through the combination of Marfrig and BRF, reported a 123.5% increase in third-quarter 2026 net profit attributable to controlling shareholders to R$210 million ($41 million), supported by operational efficiency gains, business integration and favorable tax effects.
Consolidated net revenue reached R$41.42 billion, down 0.8% from a year earlier, while adjusted EBITDA rose 1.6% to R$3.56 billion. The adjusted EBITDA margin widened to 8.6% from 8.4%, reflecting improved profitability despite higher costs across the meat and poultry industry.
BRF’s operations remained the group’s main earnings contributor, accounting for 71% of consolidated adjusted EBITDA. The business generated R$2.57 billion in adjusted EBITDA, up 1.7%, even as revenue declined 1% to R$16.12 billion. The company highlighted export growth and a greater contribution from higher-value-added products.
In North America, MBRF’s National Beef business reported adjusted EBITDA of $77 million, up 4.2% year on year and its strongest quarterly performance in two years. The improvement came despite challenging conditions in the U.S. beef industry, where tight cattle supplies continued to put pressure on production costs and processor margins.
The South American beef business generated revenue of R$6.17 billion and adjusted EBITDA of R$647 million, with a margin of 10.5%. According to the company, diversified export markets and better use of its global commercial and distribution network supported the division’s performance.
One of the quarter’s key developments was the realization of R$179 million in merger-related synergies, including savings and efficiencies across corporate functions, commercial operations and supply chains. MBRF said it had achieved 76% of its targeted synergies for 2026.
Separately, the company’s MBRF+ efficiency program delivered R$500 million in gains during the quarter, helping offset inflationary pressures, particularly in cattle procurement, logistics and industrial operations.
Operating cash flow reached R$3.2 billion during the period. After capital expenditure of R$1.50 billion and financial expenses of R$1.41 billion, MBRF reported positive free cash flow of R$295 million, based on the calculation presented in its earnings report.
Net financial expenses increased to R$2.08 billion from R$1.41 billion a year earlier, mainly reflecting higher interest costs and other financial charges. The company recorded a pretax loss of R$295 million, offset by a positive net tax effect of R$529 million, resulting in consolidated net income of R$234 million, including minority interests.
Net debt stood at R$45.74 billion at the end of September, up 10.6% from a year earlier. The net debt-to-adjusted EBITDA ratio, measured over the preceding 12 months, reached 3.45 times, compared with 3.09 times in the third quarter of 2025.
MBRF said further integration of its businesses, geographic diversification and expansion of its higher-value-added product portfolio would remain central to its strategy. The group also highlighted the performance of Sadia Halal, which achieved record revenue of $621 million, underscoring the Middle East’s growing importance to its international operations.
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