MBRF3 Marfrig Global Foods

Marfrig Global Foods S.A. is a Brazilian company in the food sector, with common shares traded on B3 under the ticker MBRF3. Originally established in 2000 as Marfrig Frigoríficos e Comércio de Alimentos Ltda., its corporate origins are tied to the trajectory of its founder, Marcos Antônio Molina dos Santos, who began in 1986 as a distributor of beef cuts and other proteins. The transformation into a corporation took place in 2007, the year it obtained registration as a publicly held company and carried out its initial public offering on the Novo Mercado segment of the then BM&FBOVESPA. Over the following years, the company went through an intense cycle of acquisitions and divestments, moving from a more diversified protein model to an increasing focus on beef and higher value-added products, consolidating a global platform for meats and derivatives.

Marfrig Global Foods’ operations are centered on the protein chain, with an emphasis on beef, complemented by poultry, pork, lamb, fish, plant-based products and pet food through its consolidated operations. Its business model covers the entire industrial journey of protein: cattle feeding and purchasing, production, slaughtering, processing, industrialization, sale and distribution of food. The company operates in multiple channels, including food service, retail, wholesale, convenience, industry and export, offering both fresh meat and processed, ready-to-eat products such as hamburgers, cold cuts, ready meals, canned meats and pet food. Portfolio and channel diversification aim to dilute exposure to specific demand cycles or raw material price cycles.

Marfrig’s operating structure is organized into three major business units: North America, South America and BRF, in addition to a corporate support structure. In North America, its main asset is National Beef, one of the largest beef processors in the United States, with three slaughter plants in Kansas and Iowa and processing units in states such as Pennsylvania, Georgia, Kansas and Ohio. This operation combines slaughter, deboning, production of fresh cuts and ready-to-eat products, as well as tanning and direct sales through digital channels. In South America, the company operates meatpacking plants and processed food factories in Brazil, Uruguay, Argentina and Chile, with significant capacity to produce hamburgers and industrialized foods, serving both domestic markets and exports. BRF, controlled by Marfrig since 2022, adds to the group a broad portfolio in poultry, pork, processed foods, margarine, plant-based products and pet food, with widely recognized brands in Brazil and abroad.

Marfrig’s markets are highly internationalized, with its production base distributed along the Americas and commercial presence in approximately 100 countries. In 2024, consolidated revenue reached R$ 148.9 billion, with around 45% coming from the North America operation, 14% from South America and 41% from BRF, illustrating the importance of both the beef platform and the poultry and pork portfolio. The company exports to regions such as China, Europe, the Middle East, Japan, Korea and Gulf countries, combining sales of chilled and frozen beef, organic meat, premium cuts and processed products. The North American operation has a strong focus on the U.S. domestic market, which absorbs about 90% of its sales, while South American operations combine supply to local markets with a relevant role as exporters, especially in Uruguay and Argentina.

The product and brand base reflects the combination of different acquisitions and developments over time. In Brazil, Marfrig operates with brands such as Bassi and Montana in meats and specialty cuts, as well as industrialized products such as frozen cooked meats, portions, canned foods, ready meals and jerked beef. Through BRF, the group consolidates a portfolio of brands such as Sadia, Perdigão, Qualy, Deline, Claybom and others, with a strong presence in processed foods, ready meals and frozen products. In Argentina, QuickFood produces hamburgers and derivatives under brands such as Paty and Vieníssima, leaders in the local market. In Uruguay, the company sells beef and processed products under brands such as Tacuarembó, Viva and Bernina, standing out in the export of certified organic meat. The portfolio also includes pet food lines with brands such as Balance, Gran Plus, Biofresh, Guabi Natural and Bona Pet, among others, reflecting expansion beyond human consumption.

Geographically, Marfrig Global Foods structures its production from slaughter and processing plants in North and South America, complemented by distribution centers and offices in Europe and Asia. In 2024, the company ended the year with seven beef slaughter plants in operation, as well as 16 processing units dedicated to higher value-added products such as hamburgers, kibbeh, meatballs, sauces and canned goods. In Brazil, the company operates meatpacking plants in states such as São Paulo and Mato Grosso do Sul, with capacity to produce around 160 thousand tons per year of industrialized products. In Uruguay and Argentina, it maintains slaughter and industrialization units that combine fresh meat, organic meat and processed products, while in Chile it operates distribution centers and engages in import and commercialization of beef and other foods.

Marfrig’s cattle supply chain involves purchasing animals from thousands of producers in North and South America, with models that combine spot purchases, forward contracts and its own feedlots for finishing, especially in Uruguay. In the North American operation, a highlight is the long-term supply contract with U.S. Premium Beef (USPB), which ensures a relevant volume of higher-quality cattle, with a strong presence of certified Black Angus beef and a high share of premium cuts in production. In South American operations, the company adopts strict supplier selection criteria, requiring sanitary documentation and control over the use of veterinary and agricultural inputs, and also purchases carcasses slaughtered by third parties when this alternative proves economically more efficient. The cost of raw materials represents a significant portion of cost of goods sold in the beef operation, reflecting the input-intensive nature of the meatpacking business.

From a regulatory and governance standpoint, Marfrig operates under various sanitary and inspection regimes, responding both to the requirements of the Ministry of Agriculture and Livestock (MAPA) in Brazil and to the health authorities of importing countries and jurisdictions where it maintains industrial plants. The slaughter and processing units follow food safety, traceability and animal welfare standards, with mandatory presence of official inspectors in Brazilian plants and adherence to standards that enable exports to markets with stringent sanitary requirements. In parallel, the company structures its corporate governance around practices of transparency, compliance and financial discipline, with a stated focus on keeping leverage under control, adjusting production capacity to market conditions and pursuing operational efficiency throughout the chain.

In sustainability, Marfrig Global Foods highlights initiatives for cattle chain traceability, supplier monitoring and mitigation of environmental impacts associated with livestock farming. By the end of 2024, the company reported satellite monitoring of 100% of its direct suppliers and significant progress in controlling indirect suppliers in the Amazon and Cerrado biomes. The company also participates in programs to encourage sustainable production, provide technical assistance to small ranchers and support land tenure regularization, seeking to expand individual traceability of animals from birth in certain regions. In climate and natural resource management, Marfrig reports ongoing efforts to reduce emissions, manage water and protect forests, while integrating social and environmental criteria into its relationships with farmers and other links in the supply chain.