Gulf presence helps MBRF overcome challenges

Brazilian food processor MBRF recognized the significance of its Gulf presence in overcoming operational challenges, according to its second-quarter earnings report released on 13th. The Middle East, a key market for MBRF, has been under strain due to conflict between the United States, Israel, and Iran since February 28th. MBRF's presence in the region, through its partnership with Saudi Arabia's Public Investment Fund (PIF) under the company Sadia Halal, has helped the company navigate through these challenges.

Sadia Halal, operating in the Gulf since its establishment earlier this year, comprises three production plants and distribution centers. The Middle East contributed 7% to MBRF's exports, a figure consistent with the second quarter of the previous year, and positions the region as MBRF's third-largest consumer market, following the United States and Brazil.

MBRF's financial performance for the second quarter of this year was marked by higher costs in dollars, attributed to Sadia Halal. Despite these increased costs, MBRF managed to enhance profitability, achieving an EBITDA (earnings before interest, taxes, depreciation, and amortization) of USD 95 million, and an operating margin of 16.1%. The operating margin was the highest since the first quarter of 2025.

Revenue for the April-June period of this year reached USD 590 million, an increase from USD 506 million in the same period of 2025, and was lower than the USD 596 million reported in the first quarter of the year. Net revenue for the period increased by 4.9% year-over-year to BRL 40.7 billion (USD 7.8 billion), while net income decreased by 19.5% to BRL 69 million (USD 13 million).

MBRF's CEO, Miguel Gularte, highlighted the company's capability to deliver results despite a challenging macroeconomic environment, currency appreciation, and high interest rates.