MBRF Global Foods: Fine tuning estimates post Q1- reiterate Neutral

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MBRF Global Foods: Fine tuning estimates post Q1- reiterate Neutral

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MBRF Global Foods

Fine tuning estimates post Q1- reiterate

Neutral

Reiterate Rating: NEUTRAL | PO: 23.00 BRL | Price: 16.50 BRL

Slightly better BRF partially offset by a stronger BRL 19 May 2026

We fine tune our estimates for MBRF after broadly in line 1Q26 results (see report). BRF Equity

margins surprised to the upside, driven mainly by strong international performance, and

management also noted improving trends in the domestic market throughout the

Key Changesquarter, with a slightly stronger start to 2Q. Feed costs are a tailwind for the rest of the

year, supported by the BRF’s corn sourcing strategy for the safrinha (2nd crop). In this (BRL) Previous Current

context, we raise our BRF EBITDA estimates to R$9.7bn for 2026 (from R$9.1bn). This is 2026E Rev (m) 161,737.9 159,484.8

partially offset by the impact of a stronger BRL on exports and international results. We 2027E Rev (m) 167,175.7 160,236.6

now forecast BRL at R$4.90 by YE26 and R$4.75 by YE27 (vs. prior R$5.25). As a result, 2028E Rev (m) 174,610.6 165,008.4

we increase our 2026E EBITDA for MBRF by 2% to R$12.5bn, while trimming 2027E by 2026E EPS -0.60 -0.05

1.4% to R$12.0bn. We forecast a Net Loss of R$79mn in 2026 (vs. -R$868mn) and keep 2027E EPS -0.74 -0.72

a Net Loss of R$1.04bn in 2027. PO is unchanged at R$23 and we reiterate Neutral. 2028E EPS 0.49 0.11

Beef integration and BRF’s intl. scale enhance resilience Isabella Simonato >>

Research Analyst

We believe MBRF’s structural strengths are enhancing earnings resilience across key Merrill Lynch (Brazil)

divisions, despite a challenging backdrop marked by the cattle downcycle and volatile +55 11 2188 4243 isabella.simonato@bofa.com

protein export markets.