BRF, the company that owns the Sadia and Perdigão brands, earned R $ 735 million in the second quarter of 2025, showing a 33% decrease compared to the previous year due to the temporary halt in chicken exports following the avian flu outbreak in Brazil.
The company’s board mentioned that the health restrictions due to the disease impacted over 100 markets that Brazil exports to, such as China, the European Union, and Chile, during a discussion with reporters on Thursday (14).
CEO Miguel Gularte stated that the quarter was very difficult, with 45 days under embargo and another 45 days experiencing the consequences of these restrictions. Despite losing important markets, the company achieved a record semester by focusing on efficiency.
CFO Fábio Mariano attributed the decrease in profit and EBITDA in comparison to the second quarter of 2024 to the combined effects of avian influenza and the valuation of the Brazilian real. He mentioned that BRF decided not to adjust the figures to account for these impacts but acknowledged that operating margins would have been higher, particularly in the international market, if these effects were excluded.
The quarterly net revenue increased by 3% to R$ 15.4 billion, with adjusted Ebitda at R$ 2.5 billion, slightly lower than the previous year’s R$ 2.6 billion. Free cash flow reached R$ 842 million, and the company’s leverage decreased to 0.34 times the Ebitda, the lowest level in its history.
BRF has been sending products to other markets like the Middle East since they cannot sell in China. Leonardo Dallorto, Vice President of International Market, mentioned that some lower-value cuts were sold for greases, but the company stuck to its strategy without making major changes.
Brazilian chicken exports decreased by 15% in the second quarter, with BRF experiencing a smaller decline of 5%, showcasing the company’s improved capabilities and adaptability. The authorities responded promptly, leading to Brazil gaining trust on the international stage.
The CEO is planning to discuss the approval of the merger with the Marfrig controller at Cade the following week. Both the company and the market anticipate an unrestricted approval. The autarchy’s decision is crucial for the finalization of MBRF’s formation.
