Brazil Meat Giant Profit Doubles on Tax Gain

BRAZIL · FOOD

MBRF Global Foods, a Brazilian meat and food group, said its third-quarter 2026 net profit rose 123.5% to R$210 million (about US$37 million, at about R$5.65 per US$, the 12 November close). A year earlier profit was R$94 million (about US$17 million).

MBRF was formed by the merger of Marfrig, a beef exporter, and BRF, maker of the Sadia and Perdigão brands. For US readers, the group sells chicken, pork and beef at home and abroad, so its margins reflect meat prices, feed costs and trade rules in its export markets.

Our earlier report on the shares before the results gives the background. The group trades in São Paulo under the ticker MBRF3.

What Happened

Net revenue was R$41.424 billion (about US$7.3 billion), down 0.8% from the third quarter of 2025 and up 1.7% from the second quarter of 2026. Adjusted EBITDA, a measure of operating cash earnings, rose 1.6% to R$3.558 billion (about US$630 million).

The adjusted EBITDA margin, the share of revenue that becomes operating earnings, reached 8.6%, up 20 basis points (0.2 percentage points) from a year earlier. Total sales volume was 2.051 million tonnes, up 4.2% from the second quarter and down 2.4% from a year earlier.

Profit more than doubled while adjusted EBITDA rose only 1.6%. The company credits geographic diversification and efficiency gains, and chairman Marcos Molina said the group’s consolidation “is a reality.”

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Why Profit Jumped

The company’s quarterly results, filed with CVM, Brazil’s securities regulator, show a more complicated picture. Net financial expenses, were about R$2.08 billion (about US$368 million), up 47.1% from a year earlier, which left a pre-tax loss of about R$295 million (about US$52 million).

A positive tax effect of about R$529 million (about US$94 million) swung that loss to a profit. Tax effects like this do not necessarily repeat, so the jump says less about the underlying business than the headline suggests.

The Debt Load

Net debt rose to about R$45.74 billion (about US$8.1 billion), up 1.6% from the second quarter. Leverage, which is net debt divided by adjusted EBITDA over 12 months, rose to 3.45 times from 3.41 times.

A higher ratio means the group needs more years of operating earnings to repay its debt. It rose even as reported profit more than doubled.

Exports and the Business Units

Domestic sales volume fell 5.9% to 1.289 million tonnes, with domestic revenue of R$28.552 billion (about US$5.05 billion). Exports moved the other way, with volume up 4.2% from a year earlier.

Export revenue rose 5.8% to R$12.872 billion (about US$2.3 billion). The company named the United States, Asia and the Middle East as the main destinations.

National Beef, the group’s US beef business, had its best quarter in two years. It earned US$77 million in adjusted EBITDA (up 4.6%) on revenue of US$3.724 billion (up 2.3%).

The South America beef unit had revenue of R$6.169 billion (about US$1.09 billion), up 9%, and adjusted EBITDA of R$647 million (about US$115 million), up 3%. BRF, the poultry and food business, had revenue of R$16.118 billion (about US$2.85 billion) and adjusted EBITDA of R$2.568 billion (about US$454 million).

BRF’s export volume hit a third-quarter record of 593,000 tonnes, up 5.7%, helped by 17 new export approvals. Sadia Halal, which sells halal-certified chicken in the Middle East, had record revenue of US$621 million (up 9.7%) and adjusted EBITDA of US$81 million (up 30.6%).

Merger Savings

The quarter marked one year since the Marfrig and BRF merger. The group said it captured R$179 million (about US$32 million) of merger savings in the quarter and R$463 million (about US$82 million) so far in 2026.

Administrative expenses fell 7.1% from a year earlier. A separate efficiency programme, MBRF+, generated R$500 million (about US$88 million).

What It Means for You

If you hold Brazilian shares through a US fund, the quarter shows a business leaning on exports and on its US beef arm. Those lines earn in dollars, so they are less tied to Brazil’s consumer demand.

The profit jump needs context before anyone reads it as a trend. Adjusted EBITDA grew 1.6%, debt costs rose, and a tax gain did the rest.

What Is Not Known

The release does not say whether the tax gain will repeat. It also does not say how the group plans to bring debt costs down.

Whether export growth can offset higher debt costs is open. The next quarter will show whether the profit jump repeats.

More: Brazil news in English, every day from The Rio Times.

Frequently Asked Questions

What Was MBRF’s Profit in the Third Quarter of 2026?

MBRF reported net profit of R$210 million (about US$37 million), up 123.5% from R$94 million (about US$17 million) a year earlier. Net revenue was R$41.424 billion (about US$7.3 billion), down 0.8%.

What Is MBRF?

MBRF Global Foods is a Brazilian meat and food group. It was formed by the merger of Marfrig and BRF and sells in Brazil and in export markets.

Why Did MBRF’s Profit Jump?

Adjusted EBITDA rose only 1.6%. A tax gain of about R$529 million (about US$94 million) turned a pre-tax loss into profit.

Sources: MBRF Global Foods, investor relations, results release for the third quarter of 2026, 12 November 2026; quarterly financial statements filed with CVM, 30 September 2026; exchange rate of about R$5.65 per US$, 12 November 2026 close.

This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error

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