BRF’s Q1 2025 Profit Doubles as Merger with Marfrig Paves Way for MBRF

According to BRF’s regulatory release, the company reported a net income of R$ 1.185 billion ($208 million) in Q1 2025, up from R$ 594 million ($104 million) a year earlier.

BRF S.A. is a global food producer focused on protein-based products with a presence in over 100 countries. The firm achieved adjusted EBITDA of R$ 2.753 billion ($483 million), a 30 percent increase, on net revenue of R$ 15.512 billion ($2.72 billion), up 16 percent.

It pushed its adjusted EBITDA margin to 17.8 percent from 16.0 percent. The company cut net debt leverage from 1.45x to 0.54x over the past twelve months.

Meanwhile, the group expanded its industrial footprint in China by acquiring a Henan processed‐foods plant for US $43 million and immediately launched a US $36 million capacity upgrade that will double annual output to 60,000 tonnes.

In Saudi Arabia, BRF bought a 26 percent stake in Addoha Poultry Company for SAR 316.2 million and agreed to acquire half of Gelprime. It also started building a US $160 million processed‐products factory in Jeddah, targeting a 40,000-tonne annual capacity by mid-2026.

BRF and Marfrig Complete Merger to Form MBRF

On May 15, 2025, BRF and Marfrig announced their definitive merger to form MBRF. Under the deal, each BRFS3 share converts into 0.8521 Marfrig shares. The combined entity posted pro forma net sales of R$ 152 billion ($26.67 billion) over the last twelve months.

Management expects annual run-rate synergies of R$ 805 million, with R$ 400–500 million materializing in year one. Extraordinary General Meetings in both companies will vote on June 18, 2025; dissenting shareholders may exercise withdrawal rights at predetermined compensation levels.

The merger positions MBRF to compete more effectively in global protein markets and unlock tax optimization estimated at R$ 3 billion in present value. The company will remain listed on B3’s Novo Mercado.

It is also studying redomiciliation and a possible U.S. listing to boost liquidity and valuation multiples. Shareholders will receive up to R$ 3.52 billion ($618 million) in pro forma dividends from BRF and R$ 2.5 billion ($439 million) from Marfrig as part of the transaction.

Looking ahead, BRF’s management reaffirms its 2025 guidance: mid-teens revenue growth, adjusted EBITDA margin above 17 percent, and net leverage below 1.0x by year-end.

The company expects sustained global protein demand and aims to leverage its combined scale, premium portfolio, and operational synergies to generate long-term value.

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