Marfrig Posts R$2.58B Profit in Q4 2024, Surpassing Expectations

Marfrig Global Foods (MRFG3), one of Brazil’s largest food companies, reported a net profit of R$2.58 billion ($430M) for the fourth quarter of 2024, marking an extraordinary increase from just R$12 million ($2M) in the same quarter of 2023.

This performance, disclosed on February 27, 2025, sent Marfrig’s shares soaring by 6.82% to R$14.87 ($2.48). The results highlighted the company’s resilience amid challenging market conditions and its strategic focus on high-value-added products.

The company’s consolidated net revenue for Q4 2024 reached R$41.3 billion ($6.88B), up 22% compared to the previous year. For the full year, revenue totaled R$144.15 billion ($24.03B), a 14% increase from 2023.

Adjusted EBITDA rose significantly to R$3.7 billion ($617M) for the quarter, a 37% jump year-on-year, with an EBITDA margin of 9%. Free cash flow also improved dramatically, reaching R$1.59 billion ($265M), up 241%.

South America emerged as a key driver of Marfrig’s success, with operations in the region generating R$5.1 billion ($850M) in revenue for Q4 2024, an increase of 18.9%.

Despite higher cattle costs in Brazil, the company managed to expand EBITDA margins in South America by focusing on premium products and operational efficiency.

Marfrig’s Strategic Shifts & Market Outlook

Meanwhile, North American operations faced headwinds due to a tight cattle supply cycle in the U.S., resulting in narrow margins of just 1.9% and EBITDA of R$360 million ($60M), falling short of expectations.

Marfrig’s strategic moves also played a significant role in its financial turnaround. The sale of assets in South America generated approximately R$7.2 billion ($1.2B), which was used to reduce leverage and strengthen its balance sheet.

Additionally, Marfrig’s majority stake in BRF (50.06%), valued at R$16 billion ($2.67B), remains a cornerstone of its strategy, despite BRF’s own operational challenges.

Analysts have mixed views on Marfrig’s stock performance moving forward. Goldman Sachs maintained a “buy” recommendation with a target price of R$21.80 ($3.63), while BB Investimentos set an optimistic target of R$23 ($3.83).

However, Itaú BBA and BTG Pactual adopted more cautious stances due to ongoing challenges in North America and high leverage levels. Marfrig’s results underscore its ability to adapt and thrive through diversification and strategic focus, even as global protein markets face volatility.

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