MBRF Global Foods: In line 1Q26 results; keep Neutral on leverage and margin headwinds

Research evidence excerpt

MBRF Global Foods: In line 1Q26 results; keep Neutral on leverage and margin headwinds

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MBRF Global Foods

In line 1Q26 results; keep Neutral on

leverage and margin headwinds

Reiterate Rating: NEUTRAL | PO: 23.00 BRL | Price: 16.93 BRL

Flattish EBITDA; strong S. Am. resilient BRF but down YoY 14 May 2026

MBRF reported in-line 1Q26 operational results, with a better than expected bottom Equity

line, mainly on taxes. Net Revenues were flattish YoY as a 10% BRL appreciation had a

Isabella Simonato >>

negative impact on sales at BRF and North America, offset by a strong performance at Research Analyst

South America. EBITDA was in line with ours at R$3.1bn, -3% YoY, with margin at 7.8%, Merrill Lynch (Brazil) isabella.simonato@bofa.com

-30bps vs. the 1Q25, mainly on lower margins at BRF (although slightly ahead of ours).

Julia Zaniolo >>

BRF delivered again a solid international margin; but domestic margins were under Research Analyst

pressure given a soft consumption. Finally, cash burn of R$1.6bn was driven by seasonal Merrill Lynch (Brazil) julia.zaniolo@bofa.com

working capital and additional inventory pressure, higher financial expenses and capex.

Fernando Olvera >>

Research Analyst

Merrill Lynch (Mexico)BRF: solid international, but weaker domestic market folvera@bofa.com

BRF’s top line of R$14.9bn was down 3.7%YoY and -3.3% vs. BofAe, mostly explained by

weaker domestic sales, while international prices were resilient (+5.9% above ours).

Production costs declined but were not enough to offset lower cost dilution. EBITDA

margin was 16.6% (+90bps vs. BofAe and -120bps YoY), with EBIT margin in Brazil down Stock Data

4p.p. YoY. Sadia Halal had record EBITDA margin of 15.6%, a 4.6p.p. YoY gain. Price 16.93 BRL

Beef: stronger S.