MBRF3

Marfrig Global Foods S.A. is a Brazilian company in the food sector, with common shares traded on B3 under the ticker MBRF3. Originally incorporated 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 (sociedade anônima) took place in 2007, the year in which 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, which took it from a more diversified protein model to an increasing focus on beef protein and higher value-added products, consolidating a global platform of 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. The business model covers the entire industrial journey of protein: feedlot finishing and cattle purchasing, production, slaughtering, processing, industrialization, sales 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 and 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, the 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 slaughtering, deboning, production of fresh cuts and ready-to-eat products, as well as tanneries and direct sales through digital channels. In South America, the company operates slaughterhouses and processed food plants in Brazil, Uruguay, Argentina and Chile, with significant capacity to produce hamburgers and industrialized foods, serving both domestic markets and exports. BRF, under Marfrig’s control 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 widely internationalized, with a production base spread along the Americas and a commercial presence in approximately 100 countries. In 2024, consolidated revenue reached R$ 148.9 billion, with around 45% originating in the North America operation, 14% in South America and 41% in 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 industrialized products. The North American operation is strongly focused on the U.S. domestic market, which absorbs around 90% of its sales, while the South American operations combine supplying 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, in addition to industrialized products such as cooked frozen meats, portions, canned foods, ready meals and cured beef (carne seca). 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 and frozen meals. 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 industrialized products under brands such as Tacuarembó, Viva and Bernina, standing out in the export of certified organic beef. 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 based on 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 foods. In Brazil, the company operates slaughterhouses 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 activities involving the 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 feedlot finishing, especially in Uruguay. In the North American operation, the long-term supply contract with U.S. Premium Beef (USPB) stands out, ensuring 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 the South American operations, the company adopts strict supplier selection criteria, requiring sanitary documentation and control of 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 the 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 sanitary 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 the mandatory presence of official inspectors in Brazilian plants and adherence to standards that enable exports to markets with high 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 seeking operational efficiency throughout the chain.

In sustainability, Marfrig Global Foods emphasizes 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 direct suppliers and significant progress in the control of 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 animal traceability from birth in certain regions. In the climate and natural resource management field, Marfrig reports ongoing efforts to reduce emissions, manage water and protect forests, while integrating social and environmental criteria into its relationships with rural producers and other links in the supply chain.